President Bola Ahmed Tinubu has challenged the Nigeria Liquefied Natural Gas (NLNG) to turn gas currently lost through flaring into an economic asset that will support domestic consumption, strengthen the economy and benefit Nigerians.
The President gave the charge on Wednesday at the State House, Abuja, when he received members of the NLNG Board led by its Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
Tinubu said while he was encouraged by the progress being made by the company in expanding its capacity and increasing revenue, greater attention must be paid to domestic utilisation of the country’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,” the President said.
He acknowledged NLNG’s efforts to take advantage of international opportunities but urged the company to ensure that Nigerians also benefit from the country’s natural gas resources.
“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,” Tinubu said.
The President commended the NLNG management for maximising and increasing the company’s capacity, noting that its operations were yielding good returns on investment.
He assured the NLNG team of his administration’s readiness to provide the necessary incentives to stimulate further growth and expand the company’s capacity.
“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,” he said.
Tinubu stressed that Nigeria must look beyond the mere possession of natural resources by ensuring that its assets were developed and deployed to serve 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 said.
He further urged the company to consider the needs of Nigerians in its operations, particularly the domestication of energy requirements and pricing mechanisms.
“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,” the President said.
Speaking earlier, the NLNG Managing Director and Chief Executive Officer, Engineer Adeleye Falade, said the board was at the State House to brief the President on the company’s operations since assuming office in April.
Falade disclosed that NLNG had generated more than $150 billion since inception, with its shareholders, including the Nigerian government, receiving about $47 billion in dividends. Nigeria holds a 49 per cent stake in the company.
He explained that NLNG had previously operated at about 60 per cent capacity because the country could not produce crude oil optimally, resulting in only four of its six available trains being utilised.
According to him, increased oil production following positive developments in the oil and gas sector had enabled the company to increase its capacity to five trains, with further improvements expected.
Falade also disclosed that all liquefied petroleum gas (LPG), commonly known as cooking gas, produced by NLNG was currently concentrated on the domestic market.
He said the company was keen to inaugurate Train Seven, which would increase its capacity by 35 per cent and further strengthen its position in the global LNG market, where it currently accounts for about five per cent.
The NLNG chief executive also said shareholders had commended the stability in Nigeria’s fiscal environment, noting that the improved stability was attracting more investment into the sector.
He commended the security agencies and regulators in the oil and gas industry for contributing to the stability recorded in the sector.
Falade further informed the President that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
Other members of the NLNG team at the meeting included the Deputy Managing Director, Olakunle Osobu; Board Director, Managing Director and Country Chair, TotalEnergies EP Nigeria Limited, Matthieu Bouyer; Board Director, Vice Chairman and Managing Director, Nigeria Agip Exploration, Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Also present were the 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, attended the meeting.
