Economic reality is forcing countries around the world to roll up their sleeves, especially countries in Europe. Europe is seriously in need of Nigerian gas, resulting from the war between Russia and Ukraine. Russia has been the major supplier of gas to Europe, as a matter of fact just before the war Russia completed a gas pipeline project for Russia to Europe, which has now been cut off by Russians.
Apart from Russia, China another supplier is currently not in a favorable position because of their relationship with Russia in the ongoing war with Ukraine. It can be said that situations of the war have created a 50 years gap between Europe and their major gas supplier, and this has forced Europe to look outward into the possibility of investing in Nigerian gas to expand production to Europe.
Currently, Nigeria has enough gas resources to meet the domestic and export need for many years to come and Nigeria has enough gas reserve to double its export capacity. Just to remind you Nigeria has been exporting gas to Europe for over 20 years, Nigeria current supply over 50% of the gas consumed in Portugal, and just recently the Government has directed NNPC to implement a gas pipeline deal to Europe through Morocco. But there has been series of challenges in increasing significant investments in Nigeria’s gas. Some of these challenges as outlined at the 8th Edition of the EU-Nigeran Business Forum in 2022, include:
Price: Nigeria is yet to come to terms in setting a standard price for its gas export, although works are currently been done to put that in place by the federal government.
Terms and agreement: Nigeria is also yet to set proper terms and agreement with the EU on its gas export, thereby formulating favorable policies to expand gas trade.
Insecurity in the Niger Delta: the issue of insecurity in the Niger Delta region of Nigeria has over the years prevented the inflow of foreign investors into the sectors. As a matter of fact, oil theft in the Niger Delta was estimated to have reached over 70% of what is been sent out of the pipeline which has largely affected Nigeria’s revenue earning from oil.
If anything, Nigeria needs to put things in place and set standards to drive significant investment now that Europe and other parts of the world are looking toward Nigeria for gas supply. Like the saying opportunity only knocks once and if you are not ready the opportunity will pass you by. This is Nigeria’s opportunity to hit major gas investments from Europe.
Even if the government set a standard price and terms of agreement are reached, there is still the big issue of insecurity in the Niger Delta, what is your take on curbing insecurity in the Niger Delta and also reducing oil theft for Nigeria to generate maximum revenue and drive this much-needed gas investment from Europe.
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