President Bola Tinubu has urged the management of Nigeria Liquefied Natural Gas (NLNG) to maximise the country’s gas reserves by reducing gas flaring and converting the resource into economic benefits for Nigerians.
The President made the call on Wednesday at the State House, Abuja, when he received members of the NLNG Board, led by its Managing Director and Chief Executive Officer, Adeleye Falade.
Tinubu said the company’s focus should extend beyond increasing revenue from international markets to ensuring greater domestic utilisation of Nigeria’s gas resources.
“I am inspired to understand that you are not limiting yourself to the gradual objective of upgrading.
“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.
“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,” the President was quoted as saying in a statement signed by his spokesperson, Bayo Onanuga.
The President commended the NLNG management for increasing the company’s capacity and contributing to a good return on investment.
He also assured the team of his administration’s readiness to provide incentives that would support further expansion and enable the company to maximise its potential for the benefit of Nigerians.
“I enjoy the teamwork and the way the NLNG is going, and you all, as team leaders, are giving value to what was the initial objective of the company. If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that.
“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.
“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,” Tinubu said.
On his part, Falade told the President that the NLNG Board was at the State House to brief him on the company’s operations since the current management assumed office in April.
He said the company had generated more than $150 billion since its inception, with its shareholders, including the Nigerian government, receiving about $47 billion in dividends. Nigeria holds a 49 per cent stake in NLNG.
Falade said the company had previously operated at about 60 per cent capacity because of inadequate crude oil production, which limited operations to four of its six available trains.
He added that all of the company’s liquefied petroleum gas (LPG), commonly known as cooking gas, was currently being supplied to the domestic market.
According to him, increased oil production following recent developments in the oil and gas sector had enabled NLNG to raise its operating capacity to five trains, with further improvements expected.
He said the company was also keen to inaugurate Train Seven, which would increase its capacity by 35 per cent, noting that NLNG currently accounts for five per cent of the global LNG market.
Falade said the company’s shareholders had commended the stability of Nigeria’s fiscal environment, which he said was attracting further investment into the sector.
He also commended the security agencies and regulators in the oil and gas industry for contributing to the stability recorded in the sector.
The NLNG chief executive further informed the President that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
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