Tinubu Tasks NLNG on Greater Domestic Benefits From Nigeria’s Gas Resources
President Bola Ahmed Tinubu has called on the management of the Nigeria Liquefied Natural Gas (NLNG) Limited to intensify efforts to ensure Nigerians derive greater economic and domestic benefits from the country’s abundant natural gas resources.
The President made the call on Wednesday at the State House, Abuja, when he received the NLNG Board and management team, led by its Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
President Tinubu said Nigeria must move beyond exporting its natural resources and place greater emphasis on domestic utilisation, particularly by reducing gas flaring and converting wasted resources into economic opportunities for Nigerians.
He described gas flaring as both an environmental liability and a lost economic opportunity, urging NLNG to explore ways of ensuring that more of the country’s gas resources are harnessed to support domestic energy needs.
“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.
Tinubu commended NLNG for expanding its operations and improving its capacity, noting that the company had continued to generate value from Nigeria’s investment in the organisation.
He assured the NLNG management of his administration’s readiness to provide appropriate incentives that would encourage further investment, expansion and growth in the gas sector.
The President also stressed the importance of ensuring that Nigeria’s natural resources translate into tangible benefits for citizens.
“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 NLNG to pay particular attention to the domestic energy market, including the availability and affordability of energy products such as cooking gas.
NLNG Generates Over $150bn Since Inception
Earlier, the NLNG Managing Director and CEO, Adeleye Falade, told the President that the company had generated more than $150 billion since its establishment, with its shareholders, including the Federal Government of Nigeria, receiving approximately $47 billion in dividends.
Nigeria holds a 49 per cent stake in NLNG.
Falade explained that the company had previously operated at about 60 per cent capacity because of limitations in the country’s crude oil and gas production, which restricted operations to four of its six available production trains.
He said increased production in the oil and gas sector had enabled NLNG to raise its operating capacity to five trains, with further improvements expected.
According to him, NLNG is also preparing for the inauguration of Train 7, a project expected to increase the company’s production capacity by about 35 per cent and strengthen Nigeria’s position in the global LNG market, where it currently accounts for about five per cent.
Falade disclosed that all of NLNG’s Liquefied Petroleum Gas (LPG), commonly known as cooking gas, is currently directed to the domestic market.
He also said the company’s shareholders had expressed confidence in the improving stability of Nigeria’s fiscal environment, noting that the development was helping to attract additional investment into the sector.
The NLNG boss commended security agencies and regulators for their contribution to the stability of the country’s oil and gas industry.
He further informed the President that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
The meeting was attended by senior officials of NLNG, as well as 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.
The President’s directive reinforces the Federal Government’s push to expand the domestic value of Nigeria’s gas resources, reduce waste through gas flaring and ensure that the country’s energy wealth contributes more directly to economic growth and improved living standards.
Tinubu Tasks NLNG on Greater Domestic Benefits From Nigeria’s Gas Resources