Petroleum Experts Urge Fiscal Incentives to Boost Gas and Oil Investment in Nigeria’s Frontier Basins
Ahead of its 50th anniversary, the Nigerian Association of Petroleum Explorationists (NAPE) has called on the federal government to implement more fiscal and regulatory policies to attract investments for oil and gas exploration in the country’s old Niger Delta and frontier basins. The association emphasized the importance of increasing gas production to eight billion cubic feet per day (8bcf/d) to help generate electricity for the 90 million Nigerians who currently lack access to power. This push is seen as crucial for ensuring long-term energy sustainability and security in the nation.
NAPE President, Mr. Johnbosco Uche, highlighted that the country’s gas reserves are a critical asset, with 50% of them being non-associated gas. He argued that growing these reserves should be a national priority, especially as Nigeria has 600 trillion cubic feet of unproven gas potential. Uche pointed out that while Nigeria ranks ninth globally in gas reserves, it fails to make the top 10 in terms of gas production, indicating significant gaps that need to be addressed.
During a press briefing in Lagos, Uche also noted the urgent need to revitalize Nigeria’s aging gas pipelines and distribution networks. These outdated infrastructures are hampering the efficiency of gas transmission and impacting electricity generation. He identified infrastructure and security challenges, particularly in the Niger Delta, as key barriers to unlocking the country’s full gas potential. Uche emphasized that without the proper infrastructure to evacuate and transmit gas, Nigeria will struggle to meet its electricity generation goals, despite having abundant natural resources.
Uche also elaborated on the amount of gas required to meet the country’s energy needs, estimating that 8bcf of gas per day is necessary to generate the 30,000 to 40,000 megawatts of electricity needed to power 90 million people. He stressed that the problem lies not just in gas production, but in the value chain from gas generation to transmission. As the Nigerian government seeks to address these challenges, the NAPE called for urgent policy adjustments to tap into Nigeria’s vast gas reserves and revitalize the nation’s energy sector.
Source: This day