Nigeria Can Generate Over $1bn Annually From Gas—RMAFC
The Revenue Mobilization, Allocation And Fiscal Commission has said that the Nigerian economy could generate over $1bn annually from gas sector.
The RMAFC Chairman Engr Elias Mbam said this in a statement issued on Wednesday in Abuja.
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He noted that the potentials of gas to revenue generation in Nigeria is enormous and needs to be properly exploited.
Mbam explained in the statement that at a time when the global economy is experiencing dwindling revenue from oil, gas economy could be seen as a safeguard for Nigeria.
He projected that Nigeria could generate over $1bn annually from the sector if relevant stakeholders could come together to address the issue of gas flaring and other constraints to gas utilisation.
In the petroleum industry, gas flaring represents the loss of raw natural gas when associated gas is extracted.
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This loss may result from inadeqaute gas extraction process and transportation infrastructure.
The economic effect of gas flaring is quantified in terms of the lost amount of revenue that could have been generated from utilizing the volume of gas flared.
According to PWC, Nigeria lost a whooping sum of N972bn between 2015 and 2018 to gas flaring.
The RMAFC Boss in the statement called for more development of gas infrastructure with a view to harnessing more revenue from the sector into the federation account.
The statement stated, “The continuous flaring of gas in the country is not for the best interest of the Nation.
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“Nigeria as a Nation is blessed with an abundance of gas deposits measuring more than two trillion cubic tons thereby making it to be the 9th largest country in gas reserves in the world. Nigeria has not been able to utilize this. “
He noted that against the health hazard posed to the oil producing communities in Nigeria due to environmental pollution, flared gas in Nigeria could be converted and channeled to the economy where more than two million people could be employed while being utilized for industrial purposes such as power generation.
