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From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu has charged the Nigeria Liquefied Natural Gas (NLNG) Limited to intensify efforts to eliminate gas flaring and convert the country’s vast gas resources into tangible economic benefits for Nigerians.
Tinubu gave the charge on Wednesday at the State House, Abuja, when he received members of the NLNG Board, led by its Managing Director and Chief Executive Officer, Adeleye Falade, according to a statement issued by Special Adviser on Information and Strategy, Bayo Onanuga.
The President said while he was encouraged by the company’s efforts to expand its operations and maximise international opportunities, greater attention must be paid to domestic utilisation of Nigeria’s gas resources.
“I am inspired to understand that you are not limiting yourself to the gradual objective of upgrading,” Tinubu said.
“My major concern is the domestic utilisation, where you must be able to take out the flaring and convert potential environmental liability to what could be strategically and economically beneficial to the consumers in the country.”
The President acknowledged NLNG’s contribution to Nigeria’s revenue, but urged the company to ensure that Nigerians also directly benefit from the country’s gas wealth.
“Yes, you are doing great to really want the revenue up and taking advantage of international interests so that Nigeria might be deriving benefits, but help us back home,” he said.
Tinubu commended the NLNG management for expanding the company’s capacity and improving returns on investment, assuring the board that his administration would provide the necessary incentives to stimulate further growth.
“I enjoy the teamwork and the way the NLNG is going, and you all, as team leaders, are giving value to what was the initial objective of the company. If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that,” he said.
The President said Nigeria must move beyond merely possessing natural resources in the ground to ensuring that such resources are developed and deployed to drive economic growth and improve citizens’ welfare.
“We look straight far into the future, and I believe that this country has what it takes; but whatever asset that we have in the ground is nothing unless it’s brought up to service the economy, the people, and realisation of a good return on investment,” he said.
Tinubu also stressed the importance of domesticating energy requirements and developing pricing mechanisms that would make the benefits of the country’s energy resources more accessible to ordinary Nigerians.
“Think of people, the need for domestication of some of these energy requirements and pricing mechanisms so that the ordinary man will feel it,” he added.
Earlier, Falade told the President that NLNG had generated more than $150 billion since its inception, with its shareholders, including the Federal Government, receiving about $47 billion in dividends.
The Nigerian government holds a 49 per cent stake in the company.
Falade said the company had previously operated at about 60 per cent capacity because of challenges in crude oil production, which limited NLNG to four of its six available production trains.
He, however, said increased oil production following recent positive developments in the sector had enabled the company to raise its operating capacity to five trains, with further improvements expected.
According to him, all of NLNG’s Liquefied Petroleum Gas (LPG), popularly known as cooking gas, is currently dedicated to the domestic market.
Falade also disclosed that the company was preparing to inaugurate Train Seven, a development expected to increase its capacity by 35 per cent and strengthen Nigeria’s position in the global LNG market.
He said NLNG currently accounts for about five per cent of global LNG supply.
The NLNG chief executive also said the company’s shareholders had commended the stability in Nigeria’s fiscal environment, noting that it was helping to attract additional investments into the oil and gas sector.
He commended security agencies and regulators for their roles in sustaining the stability in the industry.
Falade further informed the President that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
The project is expected to improve connectivity and transportation between Bonny Island and the mainland in Rivers State.
Falade was accompanied by the Deputy Managing Director, Olakunle Osobu; Board Director and Managing Director of TotalEnergies EP Nigeria Limited and Country Chair, TotalEnergies, Matthieu Bouyer; Board Director, Vice Chairman and Managing Director of Nigeria Agip Exploration, Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Others were Manager, Government Relations and Regulatory Compliance, Abdul Umar; Head, Government Relations, Tonbrafa Nanaghan; and Senior Government Relations Adviser, Rufai Mohammed Lawal.
Minister of Information and National Orientation, Mohammed Idris; Special Adviser to the President on Information and Strategy, Bayo Onanuga; and Senior Special Assistant to the President on Energy Transition, Yasmin Mohammed, also attended the meeting.
