President Bola Tinubu has charged the Nigeria Liquefied Natural Gas (NLNG) to turn gas currently lost through flaring into economic value for Nigerians.
Tinubu gave the charge on Wednesday when he received the NLNG Board, led by its Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
The President said the company’s focus should extend beyond increasing revenue from international markets to ensuring that Nigerians benefit directly from the country’s gas resources.
“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 said.
He urged the NLNG to expand domestic utilisation of gas while exploring ways to make energy requirements and pricing mechanisms more responsive to the needs of ordinary Nigerians.
The President noted that the country’s natural resources would have little value unless they were brought into productive use to support the economy and improve returns on investment.
“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 assured the NLNG team of federal support where further incentives were required to 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,” the President said.
Falade told the President that the board visited the State House to brief him on NLNG’s operations since the current management assumed office in April.
He disclosed that the company had generated more than $150 billion since inception, while its shareholders, including the Nigerian government, had received about $47 billion in dividends. Nigeria holds a 49 per cent stake in NLNG.
Falade said NLNG had previously operated at about 60 per cent capacity because inadequate crude oil production limited operations to four of its six available trains.
He added that increased oil production following developments in the sector had enabled the company to raise its operating capacity to five trains, with further improvements expected.
The NLNG chief executive also said the company was preparing to inaugurate Train Seven, which is expected to increase its capacity by 35 per cent and strengthen its position in the global LNG market, where it currently accounts for five per cent.
On domestic energy supply, Falade said all LPG production, commonly known as cooking gas, was currently concentrated on the Nigerian market.
He also told the President that shareholders had welcomed the stability in the country’s fiscal environment, which he said was attracting further investment.
Falade commended security agencies and oil and gas regulators for contributing to the stability in the sector.
He further 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, Managing Director of TotalEnergies EP Nigeria Limited and Country Chair of TotalEnergies, 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 attended the meeting.