President Bola Ahmed Tinubu has urged the Nigeria Liquefied Natural Gas (NLNG) Limited to intensify efforts to reduce gas flaring and convert the country’s gas resources into economic benefits for Nigerians.
Tinubu made the call on Wednesday at the State House, Abuja, when he received the NLNG Board, led by its Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
The President said the country must focus on ensuring that its gas resources were effectively utilised domestically, rather than allowing them to become an environmental liability through continuous flaring.
“I am inspired to understand that you are not limiting yourself to the gradual objective of upgrading,” Tinubu said.
“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.”
He acknowledged NLNG’s contribution to the economy but urged the company to ensure that Nigerians also benefited directly from its operations.
“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 said.
Tinubu commended the NLNG management for increasing the company’s capacity and improving returns on investment.
“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,” he said.
The President assured the company that his administration would support measures aimed at expanding its capacity and maximising the value of Nigeria’s gas resources.
“If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that,” Tinubu said.
He stressed that Nigeria could not afford to leave its natural resources untapped while the economy and citizens continued to require energy and other benefits from them.
“We look straight far into the future, and I believe that this country has what it takes,” he said.
“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.”
Tinubu further urged the NLNG to prioritise domestic needs, particularly access to energy and affordable pricing.
“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,” he said.
The President also encouraged the company to continue exploring opportunities that would strengthen Nigeria’s position in the global energy market while ensuring that domestic consumers were not left behind.
Earlier, Falade told the President that the delegation was at the State House to brief him on the company’s operations since he assumed office in April.
He disclosed that NLNG had generated more than $150 billion since inception, with shareholders, including Nigeria, receiving about $47 billion in dividends.
“Nigeria has a 49 per cent stake in the organisation,” Falade said.
He explained that NLNG had previously operated at about 60 per cent capacity because the country was unable to produce crude oil optimally, forcing the company to operate only four of its six available trains.
Falade said the situation had improved following increased oil production, allowing NLNG to raise its operational capacity.
“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 said.
The NLNG chief executive also told the President that all LPG production, commonly known as cooking gas, was currently concentrated on the domestic market.
He said the company was keen to inaugurate Train Seven, which would increase NLNG’s capacity by 35 per cent.
Falade added that Nigeria LNG currently accounts for about five per cent of the global LNG market.
He further disclosed that NLNG’s shareholders had commended the stability in Nigeria’s fiscal environment, saying the development was helping to attract more investments.
“The stability in the country’s fiscal environment is attracting more investment,” he said.
Falade also commended security agencies and regulators in the oil and gas sector for contributing to the stability being experienced in the industry.
He disclosed that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
Other members of the NLNG delegation included Deputy Managing Director, Olakunle Osobu; Board Director and Managing Director of TotalEnergies EP Nigeria Limited, Matthieu Bouyer; Board Director, Vice Chairman and Managing Director of Nigeria Agip Exploration, Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Also present were Manager, Government Relations and Regulatory Compliance, Abdul Umar; Head, Government Relations, Tonbrafa Nanaghan; and Senior Government Relations Adviser, Rufai Mohammed Lawal.
Minister of Information and National Orientation, Mohammed Idris; Special Adviser to the President on Information and Strategy, Bayo Onanuga; and Senior Special Assistant to the President on Energy Transition, Yasmin Mohammed, attended the meeting.