Nigeria Can Sustain Africa’s Gas Needs If Adequate Infrastructural Funding Is Provided– Komolafe

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe has said that Nigeria’s gas deposit is enough to meet the needs of the entire continent if adequate funding is provided to develop the needed infrastructure.

Komolafe made the comment at the 16th Annual International conference of the Nigerian Association for Energy Economics (NAEE).

The theme was “Energy Evolution, Transition and Reform: Prospect for African Economies”.

The NUPRC boss said global call for decarbonisation and increased focus on cleaner energies have provided the avenue for Africa to diversify its portfolio.

He said countries in the continent are transitioning by leveraging on their abundant oil and gas resources for energy security and economic development.

Nigeria has a reserve base of 36.97 billion barrels of oil and 208.83 trillion cubic feet of gas which represents.

In all, Africa’s most populous nation controls 33 percent of Africa’s total gas reserves of 620 tcf.

Komolafe said, “Nigeria can be described as a gas rich nation ranking number One in Africa in reserves with a Life Index of 94 years.

“This clearly presents Nigeria in a dominant position in the entire Africa gas market.

“Nigeria has the potential to ensure sustained supply of natural gas across the sub-Saharan region of Africa, if the necessary financing and infrastructure
are in place.”

Nigeria’s crude oil exports accounts for over 90 per cent of foreign exchange and constitutes a great percentage of its budget funding.

With the the Petroleum Industry Act, 2021 (PIA), Nigeria introduced policies to make the industry attractive.

One of such innovations is the reduction of royalty rates.

He said, “Act has also engendered the much- desired reforms aimed at ensuring the rapid development and effective production of our gas resources by providing very attractive fiscal terms for investors.

“For instance, the Act provides for lower royalty rate for domestic gas (2.5 per cent). To operationalize the Act, the Commission has also developed key regulations and initiatives that will ensure accelerated gas exploration and development to deepen domestic use for industrialization and export opportunities for enhanced revenue generation.”