Oredola Adeola
The Nigerian National Petroleum Company Limited (NNPC Ltd) has reaffirmed its commitment to fostering Nigeria’s industrialization by providing the needed support for the development of numerous power plants along the Ajaokuta, Kaduna, and Kano gas pipeline corridors.
Mr. Umar Ajiya, NNPC’s Chief Financial Officer, made this known during a panel session themed, “Accelerating Investment, Enabling Industry Growth, Meeting Energy Demand”, at the 23rd Nigeria Oil Gas Conference and Exhibition (NOG Energy Week) in Abuja on Wednesday.
According to him, Nigeria needs natural gas for industries and power to enable prosperity and economic growth.
Mr. Ajiya cited a recent report by the Manufacturers Association of Nigeria, which revealed that 30 percent of their operating costs are attributed to power expenses. He therefore emphasized the necessity of natural gas for establishing industries and providing power to spur economic growth, create jobs, and drive prosperity.
“We have a network of gas pipeline infrastructure, all with 100 percent equity in the AKK (Ajaokuta-Kaduna-Kano) project, aimed at supporting industries in Abuja, Kaduna, and Kano, thereby creating prosperity for Nigeria,” Mr. Ajiya stated.
He mentioned the Gwagwalada Power Plant as one of the major projects under consideration by NNPC, alongside another power plant project for Kaduna and Kano.
NNPC CFO added that the NNPC is already constructing the Gwagwalada power plant in partnership with ENI and Shell.
Mr. Ajiya emphasized the importance of completing these projects promptly, noting that NNPC has provided not only incentives but also equity facilities and investment opportunities for investors.
“We have securitised the product that would be transported through the pipeline network. Essentially, we need synergy to deliver on these projects. Gas development is crucial, and we invite investors to participate with the necessary resources. There are significant commercial prospects that can be realized with swift execution,” Mr. Ajiya concluded.
The NNPC CFO argued that in the face of the reluctance by global financial institutions to finance oil and gas projects as a result of environmental concerns, there was a need for the development of more institutions like Afreximbank and the proposed Africa Energy Bank to finance energy infrastructure projects.
He further noted that the key to resolving the paradox of endemic energy poverty amid abundant energy resources in Nigeria is to create an enabling environment to aggressively attract investment into the energy sector.
He listed the passage of the Petroleum Industry Act (PIA) and the recent enactment of three Executive Orders in the sector by the President as practical steps by the Federal Government to provide fiscal incentives required to attract investment.
Ajiya also contended that the task of creating an investor-friendly environment was not for the government alone, stressing that citizens, right from the Immigration and Customs Officers who welcome would-be investors at entry ports to the driver who conveys them to hotels and meeting places and even the media and the judiciary, by their respective conduct, influence investors’ perception of the country.
“There’s room for everyone to make sure that investment comes back to Nigeria”, he declared.
