Nigeria Needs N20 Billion Annually to Fix Gas Infrastructure Deficit as Reserves Offer Solutions to Energy Challenges – Eterna Plc MD

……..by Ben Ndubuwa………

The Managing Director and Chief Executive Officer of Eterna Plc, Abiola Lukman Lawal, has stated that Nigeria needs N20 billion annually to fix the gas infrastructure deficit as the nation’s vast reserves provide an immediate solution to the nation’s ongoing energy challenges, if properly managed and leveraged.

Speaking at the 2024 NAEC Annual Strategic International Conference, held in Lagos, Lawal emphasized the importance of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as cost-effective and viable alternatives for transportation and cooking.

At the event themed “Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics,” Lawal called for increased public awareness of the benefits of CNG and LPG. “By adopting CNG and LPG, Nigeria can significantly reduce greenhouse gas emissions and achieve cleaner combustion, leading to cost savings for consumers and businesses, while also creating jobs across the CNG and LPG supply chain,” he said.

Highlighting the federal government’s efforts, Lawal noted initiatives like the Decade of Gas Initiative, the Presidential CNG Initiative (PCNGi), and the establishment of CNG stations to enhance the accessibility of natural gas. He revealed that 12 CNG stations were commissioned in Lagos and Abuja in 2024, with plans for 35 more across the country.

He further emphasized the importance of private sector investment, noting that $20 billion is needed annually for gas infrastructure, with plans to raise over $350 million for CNG infrastructure by 2027.

In her remarks, Adelanke Dayo-Adepoju, representing the Major Energy Marketers Association of Nigeria (MEMAN), stressed the importance of sustainable energy solutions. She lauded the government’s new VAT Modification Order 2024, which exempts key energy products like LPG, CNG, and clean cooking equipment from VAT, aligning with MEMAN’s push for cleaner energy adoption in Nigeria.

The conference underscored the critical role of natural gas in driving energy sufficiency, while calling for collaborative investment and policy reforms to unlock the full potential of Nigeria’s gas resources.