President Bola Ahmed Tinubu has urged the management of the Nigeria Liquefied Natural Gas (NLNG) Limited to maximise Nigeria’s gas reserves by ending gas flaring and increasing domestic utilisation of the resource.
Tinubu 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.
The President said Nigeria must move beyond earning revenue from international gas markets and ensure that the country’s gas resources are also deployed to improve the lives of Nigerians and strengthen the domestic economy.
“I am inspired to understand that you are not limiting yourself to the gradual objective of upgrading,” Tinubu said.
“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.”
Tinubu commended the NLNG management for increasing the company’s operational capacity and ensuring good returns on investment.
He assured the company that his administration would provide the necessary incentives to enable it 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,” he said.
The President stressed that Nigeria’s vast natural resources would only become valuable when extracted and deployed to serve the economy and the people.
“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.
Tinubu also called for greater domestication of energy requirements and pricing mechanisms that would make energy more affordable for ordinary Nigerians.
“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 added.
Earlier, Falade told the President that the NLNG delegation was at the State House to brief him on the company’s operations since the new management assumed office in April.
He disclosed that the NLNG 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 the company.
According to Falade, NLNG had previously been operating at about 60 per cent capacity because of challenges affecting crude oil production, which meant that only four of its six available production trains were operational.
He said the situation had improved following increased oil production, enabling the company to raise its operational 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 is currently concentrated on the domestic market.
He said the company was keen to inaugurate Train Seven, which is expected to increase its capacity by 35 per cent.
The NLNG boss added that the company currently accounts for about five per cent of the global LNG market.
He said the company’s shareholders had commended the stability in Nigeria’s fiscal environment, noting that the development was helping to attract fresh investments into the oil and gas sector.
Falade also praised security agencies and industry regulators for contributing to the stability currently being experienced in the sector.
He 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 delegation at the meeting included the 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 the Manager, Government Relations and Regulatory Compliance, Abdul Umar; Head, Government Relations, Tonbrafa Nanaghan; and Senior Government Relations Advisor, Rufai Mohammed Lawal.
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, also attended the meeting.
