The Federal Government yesterday disclosed that about $20 billion investment yearly is required to bridge the gas infrastructure gap in the country in the next 10 years.
Minister of State for Petroleum Resources, Chief Timipre Sylva disclosed this in Abuja while Governing Council of the Midstream & Downstream Gas Infrastructure Fund, MDGIF.
The inauguration moves the Federal Government closer to fixing the critical missing link in its effort to develop the country’s gas sector.
Chief Sylva charged the nine-member to work seriously to mobilize funds for the provision of critical infrastructure for the gas industry.
He explained that the inauguration of the Council was a further demonstration of the commitment of President Muhammadu Buhari to reposition the nation’s energy sector “to drive economic development and prosperity for our people, our nation and value to our partners, in accordance with the Petroleum Industry Act 2021 (PIA)”.
The Minister noted that although the Federal Government has put in place several programs towards achieving the decade of gas initiatives and developing the huge gas potentials of the country, he, however, lamented that the missing link was the absence of the basic gas infrastructure to help realize the objectives.
He said a key cause of poor gas production, gas flaring, and low domestic gas utilization was the gas infrastructure deficit in the country.
He said: “It is estimated that more than $20 billion yearly will be required over the next ten years to bridge these gaps,” the Minister said.
“The Fund, established under Section 52 of the PIA, resides as a Directorate in the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA”.
SEE ALSO: “Challenges of Doing Business among Auto Assemblers in Nigeria”
As a Directorate within the Authority, the Minister said the Fund would be expected to benefit from its internal reporting, operational and organizational processes adding that in accordance with the PIA, 2021, the Council “shall supervise and make investment decisions for the Fund”.
Section 52 (3) provides for the Governing Council to supervise and make investment decisions for the Fund.
“The Midstream and Downstream sector is where the jobs could be created and value added to the economy,” Sylva said, urging the Council members to take their assignment seriously.
“There is an urgent need to focus on the major strategic plans and key initiatives to enable the government to set a clear trajectory to achieving the noble objectives of establishing the Fund,” he further stated.
Terms of reference for the Council include identifying critical and relevant stakeholders that can increase domestic utilization of natural gas, LPG, and Autogas, and develop a roadmap for transforming gas into a value added product in Nigeria.
The Council has the Minister of State Petroleum Resources as Chairman and the Executive Director MDGIF as chief executive officer.
Other members of the Council include Dr. Scholastica Nnaji representing the Central Bank of Nigeria (CBN); Mr. Victor Omata representing the Federal Ministry of Finance, Farouk Ahmed Chief Executive Nigerian Midstream Downstream Petroleum Regulatory Authority; Mr. Ahmed Bobboi; Abdullahi Bukar; Mr. Effiong Abia while the Legal Adviser, NMDPRA, will serve as the Secretary of the Council.
