Key Points
- President Bola Tinubu says the Federal Government will provide incentives to support NLNG’s growth and capacity expansion.
- He wants greater domestic utilisation of gas and an end to gas flaring.
- NLNG says Train 7 will increase its domestic cooking-gas capacity by 50 per cent when completed.
Main Story
President Bola Tinubu has pledged additional incentives to support the growth and capacity expansion of Nigeria LNG Ltd. (NLNG), saying the Federal Government wants the country to derive greater economic benefits from its gas resources.
Tinubu made the commitment on Wednesday when he received the board and executive management of NLNG at the Presidential Villa, Abuja.
The President said the administration was prepared to support measures that would strengthen the company’s capacity and turn challenges in the gas sector, particularly gas flaring, into economic opportunities.
He identified increased domestic utilisation of gas as a major priority, stressing that Nigeria’s natural resources should contribute more directly to economic growth and improve the welfare of citizens.
Tinubu said the country could not continue to leave its gas resources underground without developing them for productive use.
He also called for greater domestication of LNG-related activities and pricing arrangements that would make the benefits of the gas industry more accessible to Nigerians.
The President urged NLNG management to sustain its contribution to energy security and economic development while expanding the benefits generated from the country’s gas resources.
Earlier, the Managing Director of NLNG, Mr Adeleye Falade, said the company remained focused on supporting energy security and the Federal Government’s efforts to increase domestic gas production and utilisation.
Falade said NLNG would continue to improve operational efficiency and discipline while increasing its contribution to the Nigerian economy.
He said the company played an important role in energy security through revenue generation, employment creation and the supply of cooking gas to the domestic market.
Falade said all of NLNG’s cooking gas supplied in Nigeria was directed to the domestic market and that the company intended to maintain that commitment.
He also provided an update on the construction of Train 7, saying the project currently employs about 16,000 people and would expand NLNG’s capacity while creating additional economic opportunities.
According to him, Train 7 is expected to raise the company’s domestic cooking-gas capacity by 50 per cent when completed.
Falade assured that NLNG would continue to operate responsibly, support its host communities, generate revenue and deepen its contribution to Nigeria’s economic development.
The Issues
Nigeria has significant gas resources, but gas flaring remains a challenge that limits the economic value that can be derived from associated gas while creating environmental concerns.
Tinubu’s intervention places greater emphasis on converting gas that might otherwise be flared into productive economic use, particularly within the domestic market.
The President also wants the gas industry to deliver more direct benefits to Nigerian consumers. This includes greater domestic utilisation, increased local participation in LNG-related activities and pricing mechanisms that can improve access to gas products.
For NLNG, the expansion of capacity through Train 7 is expected to strengthen its ability to contribute to energy security and increase the availability of cooking gas in the domestic market.
What’s Being Said
“Any other incentive that might be necessary to stimulate growth and expand your capacity, I will be willing to do that.” — Bola Tinubu, President of Nigeria
“My major concern is the domestic utilisation. 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.” — Bola Tinubu, President of Nigeria
“100 per cent of our cooking gas in Nigeria comes into the Nigerian market. And nothing is going to change from that.” — Adeleye Falade, Managing Director, NLNG
What’s Next
The Federal Government is expected to consider incentives required to support NLNG’s capacity expansion and strengthen domestic gas utilisation.
NLNG will continue work on Train 7, with the project expected to increase domestic cooking-gas capacity by 50 per cent after completion.
The company is also expected to sustain efforts to improve energy security, support host communities and increase its contribution to the Nigerian economy.
Bottom Line
Tinubu’s pledge signals stronger government support for NLNG’s expansion, with domestic gas utilisation, reduced flaring and increased access to cooking gas emerging as key priorities. Train 7 is expected to play a major role in expanding NLNG’s capacity and domestic gas supply.
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