President Bola Ahmed Tinubu has charged the management of Nigeria Liquefied Natural Gas (NLNG) to intensify efforts to convert gas currently lost to flaring into economic benefits for Nigerians, particularly through increased domestic utilisation.
Tinubu gave the charge on Wednesday at the State House, Abuja, while receiving members of the NLNG Board led by its Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
The President said Nigeria must move beyond simply extracting revenue from its gas resources and ensure that the country’s energy assets directly support the domestic economy and improve the welfare of citizens.
“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.”
Tinubu commended the NLNG management for expanding the company’s capacity and improving its returns on investment, while urging the organisation to place greater emphasis on meeting domestic energy needs.
“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 assured the NLNG team that his administration would provide the necessary incentives to encourage further investment and expansion of the company’s capacity.
“If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that.”
The President stressed that Nigeria’s natural resources would only become valuable when they were effectively harnessed to serve the economy and the people.
“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 also called for greater attention to domestic energy requirements and pricing mechanisms that would make the benefits of the country’s energy resources more accessible to ordinary Nigerians.
“Think of people, the need for domestication of some of these energy requirements and pricing mechanisms so that the ordinary man will feel it.”
NLNG Reports Increased Capacity
Speaking earlier, NLNG Managing Director and Chief Executive Officer, Engineer Adeleye Falade, said the delegation was at the State House to brief the President on the company’s operations since the current management assumed office in April.
Falade disclosed that NLNG has generated more than $150 billion since inception, with its shareholders, including the Federal Government of Nigeria, receiving about $47 billion in dividends. Nigeria holds a 49 per cent stake in the company.
According to him, NLNG had previously operated at about 60 per cent capacity because of insufficient crude oil production, which restricted operations to four of its six available production trains.
He said increased oil production and positive developments in the oil and gas sector had enabled the company to raise its operating capacity to five trains, with further improvements expected.
Falade also disclosed that all of NLNG’s liquefied petroleum gas (LPG), commonly known as cooking gas, is currently dedicated to the domestic market.
He said the company was keen to inaugurate Train Seven, which is expected to increase NLNG’s capacity by 35 per cent. He added that the company currently accounts for about five per cent of the global LNG market.
The NLNG chief executive further said shareholders had commended the stability of Nigeria’s fiscal environment, noting that it was helping to attract fresh investments into the oil and gas sector.
He also praised the security agencies and industry regulators for contributing to the stability being experienced in the sector.
Falade disclosed that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
The NLNG delegation included Deputy Managing Director Olakunle Osobu; Board Director and Managing Director of TotalEnergies EP Nigeria Limited, Matthieu Bouyer; Board Director, Vice Chairman and Managing Director of Nigeria Agip Exploration, Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Also present were Manager, Government Relations and Regulatory Compliance, Abdul Umar; Head, Government Relations, Tonbrafa Nanaghan; and Senior Government Relations Advisor, Rufai Mohammed Lawal.
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 also attended the meeting.