As the federal government strives to unlock the huge opportunities in natural gas through aggressive policies, Chief Financial Officer of Axxela, Mr. Timothy Ononiwu, has harped on effective implementation of policies and regulations in order to attract more investments into the sector.
Ononiwu said such policy implementation has the capacity to promote the use of gas for power generation, industrial use, and transportation, locally, as companies see an enabling environment to invest in gas distribution infrastructure.
Citing the country’s well-thought-out policies and regulations aimed at increasing investors’ activities in the gas sector such as the Petroleum Industry Act (PIA), the ‘Decade of Gas’ initiative, the National Gas Expansion Programme (NGEP) and the Gas Master Plan, he opined that effective policy implementation was required for a game-changing outcome.
“I think it is safe to say that things are gradually converging and pointing in the right direction. The introduction of the Decade of Gas Programme, the Petroleum Industry Act, the Network Code, and other gas industry reforms by the federal government are all shepherding a new era for the gas industry.
“It is a testament that government is aligned with industry stakeholders recognising that the gas industry holds immense potential for economic growth, job creation, and sustainable development.
“A stable and sustained regulatory framework and policy environment are necessary to provide investors with confidence and certainty. This includes regulations that ensure the safety and reliability of gas infrastructure and promote competition and efficiency in the gas market,” he stated.
He argued that the current regulated price regime drives mixed incentives and impacts across the gas value chain, which he said did not adequately support a growth trajectory for the gas market.
He stated: Below-cost tariffs render projects unattractive to investors and players in the sector, hindering new development across the gas value chain. We need to transition the gas market to a cost-reflective, willing buyer-willing seller regime in the near to medium-term to trigger investments across the entire value chain and unlock the potential of Nigeria’s gas resources over the decade of gas”.
According to him, a stable policy and regulatory climate will strengthen investment flow into the sector, which is crucially required for developing and expanding gas infrastructure in advancing access to natural gas to industries and commercial entities.
