NEITI: Nigeria needs $200bn in 10 years for infrastructure required to supply gas globally

The Nigeria Extractive Industries Transparency Initiative (NEITI) says Nigeria requires a $200 billion investment in gas infrastructure in 10 years to enable the country to provide the product to the whole of Africa and beyond.

Speaking in Abuja on Monday while presenting the 2021–2023 reports on oil, gas, and solid minerals to the senate committee on public accounts, Ogbonnaya Orji, NEITI’s executive secretary, said Nigeria lacks the necessary infrastructure to harness its gas resources.

“Based on NEITI’s findings, Nigeria needs to invest at least $20 billion per year into gas infrastructure for a period of ten years,” Orji said.

“The only thing that Qatar Energy does is gas processing through required infrastructure.

“So, in Nigeria, what we need, is to invest in gas infrastructure to evacuate gas. And our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.

“This of course, will require construction of gas pipelines along and across, West African sub-region, and beyond which is a huge expenditure.”

When questioned about the alleged non-remittance of $8.5 billion by the Nigerian National Petroleum Company (NNPC) Limited, Federal Inland Revenue Service (FIRS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in 2023, Orji said the Economic and Financial Crimes Commission (EFCC) is currently investigating the agencies involved.

‘SOLID MINERALS SECTORS REVENUE GENERATION UNACCEPTABLE’

The senate committee also expressed dissatisfaction over the solid minerals sector’s poor revenue generation, which contributes less than 1 percent to Nigeria’s gross domestic product (GDP).

Aliyu Ahmed, chairman of the committee, described the situation as “ridiculous and unacceptable”.

The committee also queried NEITI’s report for omitting major solid mineral-producing states like Nasarawa, Zamfara, Kebbi, Plateau, and Bauchi, while listing only Ogun, Osun, Kogi, Edo, Ebonyi, Rivers, Cross River, and the Federal Capital Territory (FCT).

Ahmed said the situation must not continue, noting that there must be a complete overhaul of the sector.