Nigeria Grapples with Gas Shortage, Government Forms Committee to Find Solutions

Persistent low gas supply has crippled power generation across Nigeria, prompting the government to establish an inter-ministerial committee to address the issue. This committee, formed by the Ministry of Power and the Ministry of Petroleum Resources Gas, aims to identify sustainable solutions for ensuring a steady and sufficient gas flow to electricity generation companies.

The situation:

• Power plants struggling: Major power plants like Omotosho and Olorunsogo are operating below 25% capacity due to gas shortages, leading to blackouts and hindering economic activity.
• Challenges identified: Minister Ekperikpe Ekpo highlights several contributing factors, including unpaid gas debts from the past decade, infrastructure vandalism in the Niger Delta, and the use of dollars for domestic gas pricing.
• Untapped potential: Despite holding the world’s 10th largest gas reserve, Nigeria fails to fully utilize it for power generation or economic development.

Government initiatives:

• Decade of Gas initiative: Launched in 2021 with the goal of transforming Nigeria into a gas-powered economy by 2030.
• AKK gas pipeline: This key project aims to transport gas from the Niger Delta to the north, boosting regional access.
• CNG for transport: The government plans to use Compressed Natural Gas as a cheaper alternative to fuel after removing fuel subsidies.
• $13 billion investment secured: International oil companies have pledged investments in the oil and gas sector.

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Public concern:

Nigerians are anxiously waiting for the committee’s findings and the government’s response to this critical issue. Addressing the gas shortage is crucial for ensuring stable power generation, fostering economic growth, and alleviating the frustrations faced by citizens due to blackouts.