Post reply

Note: this post will not display until it has been approved by a moderator.
Shortcuts: ALT+S post or ALT+P preview

Topic summary

Posted by toluwalopesong
 - Jan 22, 2025, 11:21 PM
Nigeria Generated N8.6tn from Gas in 2024 – Report

Nigeria recorded an impressive revenue of N8.6 trillion from gas operations in 2024, according to a report recently released by the Nigerian Extractive Industries Transparency Initiative (NEITI). The report highlights the growing significance of gas in Nigeria's economy as the country shifts focus from crude oil to harness its vast natural gas reserves.

Key Highlights of the Report:
  • Revenue Breakdown: The revenue includes earnings from gas exports, domestic gas sales, and associated fees.
  • Production Growth: Nigeria's gas production rose by 12% compared to the previous year, driven by increased investments and operational efficiency.
  • Export Contributions: Liquefied Natural Gas (LNG) exports accounted for over 60% of the total revenue, with Europe and Asia being the primary markets.
  • Domestic Utilization: There was a significant increase in the domestic use of gas, particularly in power generation and industrial applications.

NEITI's Executive Secretary, Dr. Orji Ogbonnaya Orji, attributed the revenue growth to strategic reforms in the gas sector and improved governance in the extractive industries. He commended the Federal Government's initiatives, such as the Decade of Gas program, which aims to position Nigeria as a leading gas producer globally.

"The gas sector has become a critical revenue stream for Nigeria, contributing significantly to our foreign exchange earnings and economic stability. We must sustain the momentum by addressing challenges such as infrastructure gaps and regulatory hurdles," Dr. Orji said.


Sectoral Achievements in 2024:
  • Infrastructure Development: Completion of key gas pipelines, including the Ajaokuta-Kaduna-Kano (AKK) pipeline, to enhance domestic gas distribution.
  • Policy Implementation: Introduction of favorable policies to attract foreign direct investment in gas processing and export.
  • Environmental Impact: Reduction in gas flaring by 20%, reflecting the country's commitment to global climate goals.

Industry stakeholders have lauded the report as a testament to Nigeria's potential in the global energy market. However, they emphasized the need for sustained investment and policy consistency to maintain the upward trajectory.

Challenges Identified:
  • Infrastructure Deficit: Limited gas processing and transportation facilities.
  • Regulatory Bottlenecks: Complex licensing processes that deter potential investors.
  • Security Concerns: Persistent pipeline vandalism and oil theft in gas-producing regions.

The report also noted that increased domestic gas utilization could spur economic growth by providing affordable energy for industries and households. It recommended targeted investments in gas-to-power projects and the establishment of more Compressed Natural Gas (CNG) refueling stations to support the transition to cleaner energy sources.


Outlook for 2025:
The Federal Government has set ambitious targets for the gas sector, including:
  • Doubling LNG export capacity.
  • Expanding the domestic gas network to reach underserved regions.
  • Increasing private sector participation in gas infrastructure development.

As Nigeria continues its journey toward becoming a gas-powered economy, the N8.6 trillion revenue milestone underscores the sector's potential to drive sustainable development and energy security.