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Against the backdrop of the force majeure declared bt the Liquefied Natural Gas (NLNG) Limited on its 22 million tons per annum (mtpa) processing plant following widespread flooding in the Niger Delta, leading industrialists have warned that the development could worsen Nigeria’s cash crunch and curtail global gas supply to Europe and other countries struggle to replace Russian exports due to the invasion of Ukraine.
Reacting to the facility shut in, Chairman, Oil and Gas Sectoral Group of MAN, Dr. Micheal Adebayo, said access to gas has remained a challenge. “There is need for the country to review its strategies and policies relating to the manufacturing industry, by focusing more on increased domestic consumption of gas resources and development of the real sector.
He said: “Manufacturers are groaning in pain due to high cost of production. The cost of production was increasing by the day, resulting in dearth of industries. Despite opportunities that Liquefied Natural Gas (LNG) offer to Nigeria in terms of reserves, pricing and utilisation for gas-to-power, access to the commodity has remained a challenge.”
LNG and Compressed Natural Gas (CNG) form sources of alternative power to local producers due to the failure of the national grid to meet their demands. But the switch to LNG and CNG has remained a mirage due to high cost, infrastructure and policy framework.
Also reacting, Chief Blessing Enweremadu, Vice President, Aba Chamber of Commerce Industry Mines and Agriculture (ABACCIMA)said “I don’t know where they are dragging this country to. Where we are is affecting manufacturers and households seriously as prices are still going up. Well, for me I think we are heading to our doom, I don’t know the kind of economy we are running, kerosine is no where to be found, power supply is epileptic, fuel is high even lubricants are high. The cost of living is increasing by the day. Yet, we are an oil producing country. It’s laughable. The manufacturing sector is really struggling to survive. Most firms switched over to gas with the hope that it is better but the story is different now.
