Turn Gas Flaring Into Economic Benefit for Nigerians, Tinubu Tells NLNG

By Saheed Olatunji, Reporter

President Bola Ahmed Tinubu has directed NLNG to increase domestic gas utilisation, eliminate gas flaring, and ensure the country’s gas resources provide cheaper energy for citizens

The President emphasised that Nigeria’s energy resources hold little value unless extracted to improve citizens’ lives, noting that NLNG must balance its international revenue goals with local energy affordability

At the State House in Abuja, he spoke while receiving the Managing Director of NLNG, Adeleye Falade, along with the company’s Board of Directors and Executive Leadership.

Tinubu urged the NLNG to find ways of converting gas currently being flared, which constitutes an environmental liability, into an economic resource that would benefit Nigerian consumers.

“I am inspired to understand that you are not limiting yourselves to the gradual objective of upgrading. My major concern is the domestic utilization. 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 republic”, the President said.

Tinubu acknowledged NLNG’s efforts to expand its operations and take advantage of growing international demand, but insisted that Nigerians must also feel the impact of the company’s success through greater domestic availability and affordability of gas.

“Yes, you are doing great to really want the revenue up and taking advantage of international interest to build up what Nigeria might derive in benefits, but help us back home”, Tinubu said.

The President commended the company’s leadership and board for sustaining the vision behind the establishment of NLNG, saying he was encouraged by the teamwork and direction of the organisation.

“I enjoy the teamship and the way the energy is going, and you all as team leaders are giving value to what was the initial objective of the company”, he said.

He assured the NLNG leadership that his administration was prepared to provide further incentives necessary to stimulate growth and expand the company’s capacity.

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“Any other incentive that might be necessary to stimulate growth and expand your capacity, I will be willing to do that”, he said.

He, however, stressed that such expansion must ultimately serve the Nigerian economy and people, noting that the country’s natural resources could only have meaningful value when harnessed productively.

“We look straight far into the future, and I believe that this country has what it takes, but whatever assets that we have in the ground is nothing unless it’s brought up to service the economy, the people and realization of a good return on investment”, Tinubu said.

The President pledged continued government support for the company to increase its contribution to the economy, while reiterating that the welfare of Nigerians should remain central to its operations.

“So, I don’t see any other way to slice it, but to work hard to encourage and incentivize your team to achieve more for the country. I think that is the primary focus, but just think of our people, the need for domestication of some of these energy requirements and pricing mechanism that ordinary man will feel”, he added.

He said the President’s emphasis on domestic energy availability aligned with NLNG’s plans to expand production, particularly through the ongoing Train 7 project.

He said NLNG would continue to pursue operational efficiency and discipline while strengthening its role in Nigeria’s energy security, revenue generation and employment creation.

Falade said the company currently sends all its cooking gas production to the Nigerian market and would maintain that policy.

“Nigeria LNG continues to play at the heart of energy security for the country. So we’re not only generating revenue, but we’re also generating employment. But we’re making cooking gas available domestically. 100% of our cooking gas in Nigeria comes into the Nigerian market, and nothing is going to change from that”, he said.

According to him, the company’s growth must go hand-in-hand with Nigeria’s broader development, with the board committed to ensuring that expansion at NLNG produces tangible benefits for the country.

“You will see the board that continues to support the Nigeria agenda, making sure that the growth that we are having as a company that grows speaks also to development of the nation”, he said.

Falade added that the Train 7 project currently under construction had about 16,000 people working on the site and had already stimulated economic activities in several businesses and construction yards.

He disclosed that the completion of Train 7 would increase NLNG’s capacity to supply cooking gas to the domestic market by 50 per cent, directly responding to Tinubu’s demand for greater domestic benefits from the country’s gas resources.

“So today we are constructing Train Seven, about 16,000 people working on that site, have been working on it for years, and we’re looking forward to when we will bring that train online.

“Bringing it online is not just about the molecule, but it’s the transformation that comes with it. So the cooking gas that Mr. President said we should think about, we will add 50% capacity to that when Train 7 comes on and we can’t wait to see that happen”, Falade said.