Synopsis Of The 2017 National Gas Policy

Conclusion

Nigeria is often regarded as a gas province, even though, little has been done over the years to fully exploit or harness its abundant gas resources. Whilst records show that a significant proportion of the country’s gas was incidentally discovered during oil exploration, as at 2015, reserves-to-production ratios for the country’s oil and gas resources ironically stood at 46 years and 102 years respectively. These are some of the reasons why industry reactions to the new NGP have been that of commendation and optimism.

As the new regime has emerged in the wake of the failed export-focused and less-ambitious GMP, it will be interesting to see the NGP implemented to usher in a new dawn that will allow for full exploitation and development of the country’s huge gas potentials. Effective implementation of the NGP has the potential of attracting quick economic gains such as increased government revenues, enhanced gas-powered electricity, agriculture, infrastructure and industries. In the long run, in-country capacity is expected to be developed for gas resources and a clean environment, particularly in the Niger Delta, facilitated. This is also expected to enhance the attainment of the country’s targets under the global Sustainable Development Goals (SDGs).

By setting critical policy milestones, the NGP shows the seriousness of the Government to hold itself accountable to delivering the promise of gas-based industrialisation in the short, medium and long terms. However, for these milestones to be of any significance, all relevant stakeholders must be committed to ensuring successful implementation of the NGP. Specifically, the legislature and the private sector need to be sold on the new regime. The ability of the Government to meet the milestones set in the NGP shall depend largely on the legislature enacting the new petroleum industry legislation in good time, as well as the building of investors’ confidence in order to ensure that they key into the gas development and utilisation aspirations and initiatives of the Government.

The Grey Matter Concept is an initiative of the law firm, Banwo & Ighodalo

DISCLAIMER: This article is only intended to provide general information on the subject matter and does not by itself create a client/attorney relationship between readers and our Law Firm. Specialist legal advice should be sought about the readers’ specific circumstances when they arise


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