Panacea to Domestic Gas Supply Accessibility and Affordability in Nigeria

Abstract

Nigeria with a proven gas resource base of over 206tcf possesses the biggest gas reserve in the continent of Africa and is the 9th largest in the World (NUPRC website, 2021). However, Nigeria faces the challenge of making clean cooking gas accessible and affordable for its populace. Investments in making cooking gas affordable will improve the economy of the average household and reduced carbon footprint in this part of the world. The Nigerian Government by March 29th, 2021 proclaimed the following decade, the decade of gas reform and development. The blueprint of a Nigerian Gas Master Plan (NGMP) focusing on accelerating the growth of the country's gas sector was to be adopted. Efforts required in this plan would include developing better-adapted technologies and delivery models, and stronger institutional frameworks. Substantial efforts are required across the region to help convert the abundant natural gas resources into adequate domestic gas utilization and hence for national development. A key factor for making clean gas accessible and affordable for all, is to have in place, gas infrastructure for storage and distribution. A number of Nigerian oil and gas production platforms still flare their gas due to inadequate gas processing, treatment, and storage facilities. Other factors hindering development of the domestic gas sector include the non-adoption of modern gas recovery technology, inadequate media enlightenment, and stakeholders’ willingness to invest in carbon footprint reduction initiatives. Using quantitative research methodology, the researcher looked at the pricing of Liquified Petroleum Gas (LPG) over a 7-year (2016-2022) period. Examination of the gas infrastructure development within the same period was also analysed to determine if more gas has been made available in the Nigerian market. A survey was done to ascertain possible factors affecting investment in gas sector of Nigeria. Secondary data was obtained from the World bank databases showing revenue generated from gas amongst top 10 African countries. This helped to show value obtained from the gas sector. Key benefits for making domestic gas accessible and affordable would include, improved Gross Value Addition (GVA) for investors and the national economy, better health conditions for the millions already affected by using solid biomass (firewood and charcoal) for cooking as well as reduction in carbon emissions.