President Bola Ahmed Tinubu has urged the management of the Nigeria Liquefied Natural Gas (NLNG) to intensify efforts to convert gas currently being flared into economic value for Nigeria, stressing that the country must maximise the benefits of its vast gas resources.
The President made the call on Wednesday at the State House while receiving members of the NLNG Board, led by the company’s Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
Tinubu said reducing gas flaring and converting the resource into productive use should be a major priority, particularly in meeting domestic energy needs and creating greater economic benefits for Nigerians.
“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.
While commending NLNG for expanding its capacity and improving returns on investment, Tinubu urged the company to pay greater attention to the domestic market.
“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 said.
The President assured the NLNG leadership of the Federal Government’s readiness to provide incentives needed to stimulate growth and enable the company to expand its capacity.
He said Nigeria’s natural resources would only deliver meaningful value when developed to serve the economy and improve the lives of the people.
“Whatever asset that we have in the ground is nothing unless it is brought up to service the economy, the people, and realisation of a good return on investment,” Tinubu said.
He also called for greater attention to domestic energy requirements and pricing mechanisms that would enable ordinary Nigerians to benefit directly from the country’s energy resources.
In his remarks, Falade said the NLNG Board was at the State House to brief the President on the company’s operations since he assumed office in April.
According to him, NLNG has generated more than $150 billion since inception, while shareholders, including the Nigerian government, have received about $47 billion in dividends. Nigeria holds a 49 per cent stake in the company.
Falade said the company had previously operated at about 60 per cent capacity, with only four of its six available trains in operation, largely due to limitations in gas supply.
He, however, said improved oil and gas production and positive developments in the sector had enabled NLNG to increase operations to five trains, with further improvements expected.
The NLNG chief said all the company’s Liquefied Petroleum Gas production, popularly known as cooking gas, was currently being directed to the domestic market.
He added that the company was looking forward to the inauguration of Train Seven, which is expected to increase NLNG’s capacity by 35 per cent.
Falade also told the President that NLNG currently accounts for about five per cent of the global LNG market and that improved fiscal stability in Nigeria was attracting additional investment.
He commended security agencies and regulators in the oil and gas sector for contributing to the stability currently being experienced in the industry.
The NLNG Managing Director further disclosed that the Bonny-Bodo Road and Bridge project, financed by the company, had been completed and was awaiting official commissioning.
Other members of the NLNG delegation included the Deputy Managing Director, Olakunle Osobu; Board Director and Managing Director of TotalEnergies EP Nigeria Limited, Mr Matthieu Bouyer; Board Director and Managing Director of Nigeria Agip Exploration, Mr Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Also present were the 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.
