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…Says AKK project 30 years behind
By Adewale Sanyaolu
A former President of the Nigerian Gas Association (NGA), Mr. Charles Osezua, has warned the Federal Government against missing the Decade of Gas target, saying the consequences could be grave.
Osezua stated this in his book ‘’The Rise of Gas: From Gaslink to the Decade of Gas which was launched yesterday in Lagos.
He further noted that the much touted Ajaokuta, Kaduna, and Kano (AKK) gas pipeline project which ought to have boosted new power plants, fertilizer and petrochemical plants was scheduled to have been completed as far back as 1992 but didn’t happen on account of politicization of the decision-making process.
On March 29, 2021, former President Muhammadu Buhari, declared 2020 to 2030 the ‘’Decade of Gas’’. The decade of gas policy is expected to deliver 10 projects that would significantly impact the economy. According to the plan, the Federal Government’s target is to attract $14 billion in foreign direct investment, raise $12 billion in revenue through royalties and taxes, and create two million jobs by 2030.
According to the author, the Decade of Gas may well come and go without much being achieved, saying the country must show the political will to do what is needed, what is good for Nigeria, rather than what is expedient,only then can the country celebrate.
‘‘If we don’t make that sacrifice, we cannot get to where we want to.Therefore, feeling ecstatic about thepronouncement for me, feels premature, given the experiences and exposures we have been through in the past.
Take for instance today, everyone is talking about the Gas Master Plan and forgetting that before that, we had the Gas Pricing Policy which covered everything from gas supply to pricing and investments”.
Osezua who has over 35 years experience in the oil and gas industry said oil contributes around half of our country’s revenue and most of its foreign exchange receipts, saying in declaring a ‘’Decade of Gas’’ , Buhari was expressing optimism as many other leaders have before him that Nigeria’s huge and largely untapped natural resources might provide the silver bullet needed for the country to to make its way through the global energy transition.
‘‘At the risk of being a killyjoy, I must point out again, that these sentiments have been expressed before in a slightly different language.But it is always a positive message when government points to a direction, so we to give them the benefit of the doubt that they will do what is neccassry to realize the aspiration’’.
To reverse the likelihood of a failed Decade of Gas aspiration, Osezua said Nigeria has to work hard to maximize its decade of gas before winding down to zero emission from 2050.
He maintained that the major problem hampering the opening up and growth of the petroleum industry with major focus on gas was lack of finance and investments as well as infrastructure.
‘‘But dig deeper and you will find that there is more. While finance and infrastructure go hand in had,the biggest impediment is a lack of political will to push through with the tough decisions.
The former Special Assistant to Head of State on oil and gas matters said Nigeria operates a mono-product economy which sees oil contributing more than half of the government’s annual revenues and foreign exchange earnings makes Nigeria usually susceptible to shocks in the world’s energy markets.
‘‘With the world embracing energy transition evident in the move away from fossil fuels to much greener alternatives, the announcement by the government of Buhari that the next 10 years is a decade of gas seems like a contradiction, especially since Nigeria was a signatory to COP26 in Glasgow, Scotland.
