NIGERIA must accelerate the conversion of its estimated 600 trillion cubic feet (TCF) gas potential into electricity, industrial growth, jobs, foreign exchange and broad-based economic prosperity, Managing Director of Nigeria LNG Limited (NLNG), Eng. Adeleye Falade, has said.
Falade made the call while delivering the keynote address at the Fifth Energy and Labor Summit organized by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), highlighting that Nigeria’s vast gas resources could serve as a major driver of national development if supported by proper governance, investment, infrastructure and trade frameworks.
He said the central challenge facing the country was no longer simply the availability of gas resources, but how to transform those resources into tangible economic value for Nigerians.
“Geology creates opportunities; governance determines the outcome,” Falade said, arguing that countries do not prosper simply because they discover natural resources, but when they build the institutions, infrastructure, business frameworks and human capabilities necessary to convert those resources into value.
According to him, Nigeria has some of the largest gas reserves in the world and is already a major exporter of LNG, but the country still has significant opportunities to expand the use of gas for electricity generation, fertilizer production, petrochemicals, LPG and manufacturing.
READ ALSO: FCTA partners send passengers and mail operators to expel criminal passengers
He said the country’s ability to unlock those opportunities would largely depend on the strength and predictability of its regulatory and investment environment.
“Investors do not commit millions of dollars based solely on resources. Capital goes where there is investor confidence,” he said, highlighting that investors need assurances that “rules are clear, tax terms are competitive, contracts are respected and regulatory processes are transparent and predictable.”
Falade explained that regulatory predictability was directly related to the ability to attract capital and develop projects.
“Predictability reduces risk. Reducing risk reduces the cost of capital. A lower cost of capital makes projects viable,” he said.
He added that viable projects would, in turn, create infrastructure, jobs, income and greater value for the national economy.
The NLNG CEO therefore urged stakeholders to consider regulation not simply as an administrative requirement but as an important component of Nigeria’s investment infrastructure.
According to him, Nigeria has already taken important steps to create a more conducive environment for gas development, pointing to the National Gas Policy of 2017, the Gas Decade Initiative launched in 2021 and the Petroleum Industry Act (PIA) of 2021.
He said the National Gas Policy repositioned gas as a strategic national resource, while the Gas Decade Initiative reinforced its role in industrialization and economic diversification.
The PIA, he added, represented a major restructuring of Nigeria’s petroleum fiscal and regulatory framework.
Falade said the next phase should be to consolidate these reforms and ensure effective implementation, particularly in developing infrastructure and strengthening the commercial frameworks necessary to move gas from reserves to productive economic use.
He noted that despite Nigeria’s vast resource base, many gas-based industries are still struggling for reliable gas supply, while significant opportunities remain untapped across the gas value chain.
Nigeria, he said, has “abundant raw materials for energy, fertilizers, petrochemicals, LPG and manufacturing,” but much of the potential has not yet been fully realized.
“This is the paradox of Nigerian gas: we are rich in gas, but we have not yet fully translated the abundance into economic value,” he said.
Falade stressed that the ultimate measure of Nigeria’s gas wealth should not be the size of its reserves, but the value created from them.
“The size of the resource is not the same as the value that is created from it. The difference is in governance, investment, but also in execution,” he said.
He also highlighted the need to maintain partnerships between government, investors and other stakeholders, noting that long-term stability had demonstrated what could be achieved in the Nigerian gas industry.
Using NLNG as an example, Falade said the company had grown significantly since it began operations in 1999, developing into a six-train facility with a capacity of 22 million metric tons per year of LNG and five million metric tons per year of NGL.
He attributed the company’s growth to stable governance, commercial agreements and long-term alignment of stakeholders.
According to him, over more than 25 years of operation, NLNG has loaded more than 6,000 LNG cargoes, built an asset base valued at more than $22.9 billion, generated more than $149.6 billion in revenue, paid more than $7.2 billion in dividends and contributed more than $10.8 billion in taxes.
Falade said the figures represented more than corporate achievements, highlighting that they translated into jobs, taxes, foreign exchange and broader economic opportunities for the country.
He said the NLNG experience demonstrated the importance of creating an environment where long-term investments could thrive, adding that Nigeria’s gas resources offered an opportunity to simultaneously address energy needs and accelerate industrial development.
With more than 600 TCF of gas potential, he said, Nigeria had the opportunity to build a stronger gas-based economy, capable of powering homes and industries, creating jobs, supporting manufacturing and generating additional foreign exchange.
He therefore called for sustained collaboration between government, regulators, investors, workers and other stakeholders to ensure that Nigeria’s gas resources are effectively converted into lasting economic and social benefits.
WATCH THE BEST VIDEOS FROM NIGERIAN TRIBUNE TV