NIGERIA:Government plans effective gas policy

Government plans effective gas policy

The Federal Government is set to ensure that an effective gas policy is evolved in Nigeria, considering that the country is fortunate to have one of the largest gas deposits in the world which has been neglected over time, especially for local use, the Vice President Namadi Sambo has said.

Mr Sambo made this disclosure yesterday during a courtesy visit paid to him by a delegation from the Nigerian Gas Association (NGA), led by its Chairman, Charles Osezua, which was in the State House to brief him on the just concluded Conference on Gas Development in Nigeria.

The Vice President pledged government’s resolve to give all the necessary support towards realizing this objective. He listed some steps taken by the government to include construction of ten new thermal/gas power plants in the country and the encouragement of private sector participation; the drawing up of a gas master plan by government and the mandate given to NNPC to commence a detailed study and designs of gas transfer.

He informed the group that on November, 23, the President of the African Development Bank will be visiting Nigeria to ascertain the areas where the bank can support Nigeria.

He also pointed out that on the 6th of December, the Islamic Development Bank will also be in Nigeria for the IDB day and use the opportunity to examine infrastructural projects in the country for the purpose of making available cheap funds with long term repayment periods at low interests rates.

Funds for growth

He further stated that the China Exim Bank, Japanese Yen Credit, European Union and the Common Wealth Business Council are other bodies interested in supporting government’s planned development of the gas sector both technically and financially.

Mr. Sambo reiterated the administration’s resolve to support the development of gas and its export sector in Nigeria in order to realize the roadmap to improve power in Nigeria. “This is a viable project, the sum of N300 billion having been made available to be accessed via the CBN,” he said.

Mr Osezua commended government’s intervention through the CBN funding to enable potential power and gas investors access capital which hitherto had been a major challenge.

He also observed that it was crucial that infrastructural challenges, such as the North to South gas pipelines network be worked.

Mr. Osezua urged government to review the licensing tenure and enthused that gas needs power and power needs power.