SPEECH BY HIS EXCELLENCY, SENATOR (DR.) ABUBAKAR BUKOLA SARAKI, CON, PRESIDENT OF THE SENATE OF THE FEDERAL REPUBLIC OF NIGERIA, AT THE 7TH ANNUAL NLPGA CONFERENCE AND EXHIBITION HELD AT FEDERAL PALACE HOTEL, LAGOS, ON DECEMBER 6, 2017.
PROTOCOL.
1.It is my pleasure to be at this 7th Annual NLPGA Conference and Exhibition on the theme: ‘National LPG Policy – Running an LPG Economy’. I thank the Governing Council and the entire members of the Nigeria Liquefied Petroleum Gas Association for my invitation.
2.I congratulate the organisers on the theme, which speaks to the present national reckoning in terms of economic focus. For if indeed we are serious about the need to diversify our economy beyond lip service, we must wean our economy off its reliance on crude oil export onto an oil and gas based one that that will be attractive to investments and industrial development. You will agree with me when I say that there is no better time for the paradigm shift than now – when the Nigerian economy is in recovery from a difficult period of recession.
3.The National Gas Policy 2017, which was approved earlier this year, on 28th June, is an economic landmark, and sets the context for the challenges the country faces in the oil and gas sector. According to the Policy, “Nigeria is experiencing a full-blown energy crisis in spite of the abundant gas resources.” Therefore, what is required is a new approach that is “more effective and adjusted for much harsher international business environment for gas… to drive the reform necessary to attract investment into the sector.”
4.Ladies and gentlemen, the stark reality is that Nigeria lacks the critical gas infrastructure, and is falling short of its Domestic Gas Supply Obligation. This is in a larger international context in which many other countries have already tapped the economic benefits of re-injecting gas flared back into the fields, while optimising the resource by converting it into liquefied natural gas, domestic cooking gas and other uses.
5.Nigeria, meanwhile, appears fixated on gas flaring – at quantities that far outstrip the rest of Africa by 40 per cent – representing lost revenue of about 7 billion dollars. Apart from the huge economic waste, gas flaring is unsustainable for many other reasons, not least of which are its adverse effects on the environment and human health.
6.Nigeria is lagging behind internationally in efforts to end gas flaring by the Year 2030, in line with World Bank proposals. Moreover, as demand for Renewable Energy grows in the West, there is the need for more concerted efforts on the part of government and the industry to promote and optimise gas for domestic use.
7.Currently, we produce over 400 million metric tonnes of LPG but consume only 5 percent. We flare 75 percent of gas produced and re-inject only 12 percent back into the fields. This state of affairs is unacceptable, in a country such as ours that is blessed with the ninth largest gas reserves in the world – with 187 trillion cubic feet of this highly valuable resource. And yet, 40 percent of our domestic consumption in 2015 was imported. How do we justify this? Or our paltry 2.5kg per capita consumption of gas we produce – which places us lower than other African countries not so endowed in gas reserves?
8.These are some of the issues I hope stakeholders, experts and investors will look into at this conference and exhibition, so that, together, we can achieve a full implementation of the National LPG Policy, and deliver energy security for the masses.
9.The 8th National Assembly believes that the supply of adequate and affordable energy mix is essential. The cost equivalence of LPG consumption over kerosene, firewood and so on, is incomparable. LPG also comes with the benefits in terms of public health and the environment. It is a key plank in our promotion of Made-In-Nigeria goods. We will create laws and influence policies that can provide a supply chain and strong value chain of LPG, efficient stoves and other cooking fuels in instruments, in line with the Made-In-Nigeria drive. This should be music to the ears of small and medium scale manufacturers of cookstoves in Nigeria.
10.I have championed clean and healthy cooking lifestyles for quite some time; and my appointment into the leadership council of the Global Alliance for Clean Cookstoves, in 2012, spurred me on. I will continue to advocate for clean cooking, while working to create an enabling environment for a thriving market for clean cookstoves, as a strategy for us to reach the last mile in the adoption of clean cookstove technology and fuels.
11.In conclusion, ladies and gentlemen, let me say that the high demand for petroleum products among Nigeria’s teeming population presents immense opportunities in the oil and gas sector. The investment opportunities are virtually limitless. This is a win-win situation for all, and it is an opportunity I hope we all grab on to, and maximise.
12.Thank you for listening. I wish you a successful conference and exhibition.
THE PRESIDENT OF THE SENATE
