NGA: FG Must Remove Impediments to Investments in Gas Sector

Peter Uzoho 

The Nigerian Gas Association (NGA) has called for urgent reforms to address multiple taxation, multiple agency fees, overlapping laws and regulations that continue to increase the cost of doing business in the gas sector in order to unlock its huge investment potential.
The President of NGA, Mr. Akachukwu Nwokedi, made the call in Abuja while delivering his goodwill message, titled: “Aligning Nigeria’s Gas Industry with Africa’s Energy Evolution”, at the just-ended 8th Nigeria International Energy Summit (NIES).
While commending the federal government for its significant strides in advancing the gas sector, mainly through the actualisation of the Petroleum Industry Act (PIA) and issuing forward-looking Executive Orders, the NGA boss emphasised the need for further regulatory streamlining. 
He noted that conflicting laws, multiple taxation, some denominated in foreign currencies, as well as too many agency fees were stifling growth and discouraging much-needed investments in the upstream, midstream, and downstream segments of the gas industry.  
The NGA president also highlighted the importance of synchronised investments, supported by integrated policies and financial frameworks, to maximise the benefits of Nigeria’s Decade of Gas initiative. 
Noting that Nigeria’s Decade of Gas is also the country’s Decade of Investment, he said this was due to the necessity of significant investment inflows within this relatively short period of time.
The synchronisation, he pointed out, requires a measure of sustained transparency, confidence and interdependencies between investors and stakeholders such that investments in the upstream, midstream and downstream can move in a synchronised manner in order to enjoy optimal utilisation and returns”, he said. 
However, to drive and encourage more investment, he said that Nigeria must sustain the effort to keep enacting investor-friendly policies, laws, and regulations.
 “That said, despite the welcome stability provided by the PIA, we still see laws and regulations that overlap and significantly increase the cost of doing business, which is unsuitable for the gas sector. It is, therefore, time to take stock and address them”, Nwokedi added.
He stressed that Nigeria’s abundant gas resources position the country as a natural regional gas hub, capable of driving energy security and economic growth across Africa.  
The NGA also underscored the critical role of regional collaboration and intra-African trade in addressing energy poverty and fostering sustainable development, noting that by leveraging its gas potential, Nigeria can play a pivotal role in connecting Africa’s energy markets and unlocking its vast energy resources.  
“Nigeria has sufficient gas, as we all know, and is naturally positioned to become a regional gas hub in the continent, but we must seize the opportunity by maximising the Decade of Gas initiative. This requires a combination of smart regulations, a top-down focused project approach for key backbone pipeline infrastructure coupled with integrated policies, and financial frameworks that would make access to financing for gas projects possible”, Nwokedi stated.

He, however, praised the administration of President Bola Tinubu for his commitment to prioritising gas as a key driver for the realisation of Nigeria’s strategic economic goalsNGA: FG Must Remove Impediments to Investments in Gas Sector
Peter Uzoho 

The Nigerian Gas Association (NGA) has called for urgent reforms to address multiple taxation, multiple agency fees, overlapping laws and regulations that continue to increase the cost of doing business in the gas sector in order to unlock its huge investment potential.
The President of NGA, Mr. Akachukwu Nwokedi, made the call in Abuja while delivering his goodwill message, titled: “Aligning Nigeria’s Gas Industry with Africa’s Energy Evolution”, at the just-ended 8th Nigeria International Energy Summit (NIES).
While commending the federal government for its significant strides in advancing the gas sector, mainly through the actualisation of the Petroleum Industry Act (PIA) and issuing forward-looking Executive Orders, the NGA boss emphasised the need for further regulatory streamlining. 
He noted that conflicting laws, multiple taxation, some denominated in foreign currencies, as well as too many agency fees were stifling growth and discouraging much-needed investments in the upstream, midstream, and downstream segments of the gas industry.  
The NGA president also highlighted the importance of synchronised investments, supported by integrated policies and financial frameworks, to maximise the benefits of Nigeria’s Decade of Gas initiative. 
Noting that Nigeria’s Decade of Gas is also the country’s Decade of Investment, he said this was due to the necessity of significant investment inflows within this relatively short period of time.
The synchronisation, he pointed out, requires a measure of sustained transparency, confidence and interdependencies between investors and stakeholders such that investments in the upstream, midstream and downstream can move in a synchronised manner in order to enjoy optimal utilisation and returns”, he said. 
However, to drive and encourage more investment, he said that Nigeria must sustain the effort to keep enacting investor-friendly policies, laws, and regulations.
 “That said, despite the welcome stability provided by the PIA, we still see laws and regulations that overlap and significantly increase the cost of doing business, which is unsuitable for the gas sector. It is, therefore, time to take stock and address them”, Nwokedi added.
He stressed that Nigeria’s abundant gas resources position the country as a natural regional gas hub, capable of driving energy security and economic growth across Africa.  
The NGA also underscored the critical role of regional collaboration and intra-African trade in addressing energy poverty and fostering sustainable development, noting that by leveraging its gas potential, Nigeria can play a pivotal role in connecting Africa’s energy markets and unlocking its vast energy resources.  
“Nigeria has sufficient gas, as we all know, and is naturally positioned to become a regional gas hub in the continent, but we must seize the opportunity by maximising the Decade of Gas initiative. This requires a combination of smart regulations, a top-down focused project approach for key backbone pipeline infrastructure coupled with integrated policies, and financial frameworks that would make access to financing for gas projects possible”, Nwokedi stated.

He, however, praised the administration of President Bola Tinubu for his commitment to prioritising gas as a key driver for the realisation of Nigeria’s strategic economic goals