President Bola Ahmed Tinubu has urged the management of Nigeria Liquefied Natural Gas (NLNG) to do all within its powers to ensure Nigeria derives maximum benefits from its gas reserves rather than allowing them to be flared.
The President said this Wednesday at the State House, where he received members of the NLNG Board led by its Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
“I am inspired to understand that you are not limiting yourself to the gradual objective of upgrading.
“My major concern is the domestic utilisation, where 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 in the country.
“Yes, you are doing great to really want the revenue up and taking advantage of international interests so that Nigeria might be deriving benefits, but help us back home.”
He commended the team for maximising and increasing the organisation’s capacity, adding that the company was ensuring a good return on investment.
President Tinubu assured the team that he would do whatever is within his power to incentivise them to maximise the organisation’s potential for Nigerians’ benefit.
“I enjoy the teamwork and the way the NLNG is going, and you all, as team leaders, are giving value to what was the initial objective of the company. If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that.
“We look straight far into the future, and I believe that this country has what it takes; but whatever asset that we have in the ground is nothing unless it’s brought up to service the economy, the people, and realisation of a good return on investment.
“I think that is the primary focus. But think of people, the need for domestication of some of these energy requirements and pricing mechanisms so that the ordinary man will feel it,” the President said.
In his remarks, the Managing Director and Chief Executive Officer of NLNG, Engineer Adeleye Falade, told the President that the board was at the State House to brief the President on the company’s operations since assuming office in April this year.
He said NLNG has generated over $150 billion since inception, with shareholders, including Nigeria, receiving about $47 billion as dividends. Nigeria has a 49 per cent stake in the organisation.
The Managing Director said NLNG was earlier operating at about 60 per cent capacity because the country could not produce crude optimally, resulting in the use of only four of the six available trains.
He told the President that for now, all LPG production, commonly known as cooking gas, is concentrated on the domestic market.
Engineer Falade, however, informed the President that, due to increased oil production from positive developments in the oil and gas sector, capacity has been increased to five trains, with more improvements expected.
He told the President that NLNG is keen to inaugurate Train Seven, which will boost its capacity by 35 per cent and further increase its current capacity, adding that Nigeria LNG has a five per cent share of the global LNG market.
The Managing Director also told the President that the shareholders eulogized the stability in the country’s fiscal environment, adding that this stability is attracting more investment.
He lauded the security agencies and the regulators in the oil and gas industry for the stability enjoyed so far.
Engineer Falade also informed President Tinubu that the construction of the Bonny-Bodo Road and Bridge project, financed by the NLNG, has been completed and is awaiting official commissioning.
Other members of the NLNG team include: the Deputy Managing Director, Olakunle Osobu; Board Director / MD TotalEnergies EP Nigeria Limited & Country Chair Total Energies, Mr Matthieu Bouyer; Board Director/Vice Chairman/ Managing Director, Nigeria Agip Exploration, Mr Maurizio Pinna; and General Manager, External Relations & Sustainable Development, Sophia Horsfall.
Manager, Government Relations and Regulatory Compliance, Abdul Umar; Head, Government Relations, Tonbrafa Nanaghan; and Senior Government Relations Advisor, Rufai Mohammed Lawal were also present.
Minister of Information and National Orientation Mohammed Idris, Special Adviser to the President on Information & Strategy Bayo Onanuga, and Senior Special Assistant to the President on Energy Transition Yasmin Mohammed attended the event.
