“My major concern is the domestic utilisation, where you must be able to take out the flaring and convert potential environmental liability to what could be strategically and economically beneficial to the consumers in the country.”
President Bola Tinubu has urged the Nigeria LNG Limited (NLNG) to reduce gas flaring and ensure Nigeria derives greater economic benefits from its gas resources.
The development was disclosed in a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga.
President Tinubu said Nigeria should move beyond earning revenue from its gas resources and focus on using them to meet domestic energy needs and reduce the environmental impact of gas flaring.
“My major concern is the domestic utilisation, where you must be able to take out the flaring and convert potential environmental liability to what could be strategically and economically beneficial to the consumers in the country,” he said.
He urged the company to ensure that the benefits of Nigeria’s gas resources extend to domestic consumers.
“Yes, you are doing great to really want the revenue up and taking advantage of international interests so that Nigeria might be deriving benefits, but help us back home,” he added.
He called for greater consideration of domestic energy requirements and pricing mechanisms, saying Nigerians should be able to feel the benefits of the country’s natural resources.
“I think that is the primary focus. But think of people, the need for domestication of some of these energy requirements and pricing mechanisms so that the ordinary man will feel it,” he said.
The President commended NLNG’s management for increasing the company’s capacity and improving its returns.
He said his administration was willing to provide incentives that could support further expansion of the company.
“If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that.”
He noted that Nigeria’s resources would only be valuable when they were developed and used to support the economy and improve the welfare of citizens.
“We look straight far into the future, and I believe that this country has what it takes; but whatever asset that we have in the ground is nothing unless it’s brought up to service the economy, the people, and realisation of a good return on investment,” he noted.
NLNG reports $150bn revenue since inception
Briefing the President, Mr Falade said NLNG had generated more than $150 billion since its establishment, with its shareholders receiving about $47 billion in dividends.
The Nigerian government holds a 49 per cent stake in the company.
He said the company had previously operated at about 60 per cent capacity because of difficulties in achieving optimal crude oil production, which limited operations to four of its six available production trains.
He added that increased oil production had enabled the company to raise its operating capacity to five trains, with further improvements expected.
According to him, NLNG is also working towards the inauguration of Train Seven, which is expected to increase the company’s capacity by 35 per cent.
NLNG currently accounts for about five per cent of the global LNG market, he said.
Mr Falade also told the President that the company’s liquefied petroleum gas (LPG) production, commonly known as cooking gas, was currently concentrated on the domestic market.
The NLNG chief executive also informed the president that the Bonny-Bodo Road and Bridge project, financed by the company, had been completed and was awaiting official commissioning.
Mr Falade also said NLNG’s shareholders had commended the stability of Nigeria’s fiscal environment, which he said was helping to attract investment.
He praised security agencies and regulators in the oil and gas sector for contributing to the stability.
Other members of the NLNG delegation included Deputy Managing Director Olakunle Osobu; Board Director and Managing Director of TotalEnergies EP Nigeria, Matthieu Bouyer; Board Director and Vice Chairman and Managing Director of Nigeria Agip Exploration, Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Officials present at the meeting included Minister of Information and National Orientation, Mohammed Idris; Special Adviser to the President on Information and Strategy, Bayo Onanuga and Senior Special Assistant to the President on Energy Transition, Yasmin Mohammed.
