With the appropriate legal and fiscal policy capable of driving investment in the midstream subsector of the oil and gas industry, Nigeria will be in a position to earn $3.3 billion annually, Leadership reports.
It was gathered that the country’s gas sector could generate substantial revenue provided the legal policy, especially fiscal policy and commercial frameworks, are encouraging for investors and provide a fair share for the Nigerian government and investors alike. It was also learnt that if Nigeria were to generate 10,000 megawatts (MW) of power from gas fired power plants this could generate some $3.3 billion dollars gas sales revenue annually.
Confirming this, Engr. Dada Thomas, president of Nigeria Gas Association (NGA), said if Nigeria were to supply the agreed gas volumes for the West African countries, government could equally generate income in excess of $200 million annually. Thomas who is also the chief executive officer of Frontier Oil added that if 500,000 metric tonnes annually of liquefied petroleum gas (LPG) consumption locally is achieved, Nigeria could add another $500 million annually in revenue.
He also observed that though Nigeria has done well in reducing gas flaring over the years from 2 billion standard cubic feet per day in 2015 to about 750 million standard cubic feet per day today, making her the 5th largest nation flaring gas in the world, this still equates to burning $700 million annually or wasting fuel that could have been used to generate nearly 3000MW of electricity.topics from