The optimisation of Nigeria’s 209.26 trillion cubic feet (TCF) gas reserves will make the naira appreciate, the Independent Petroleum Marketers Association (IPMAN) has said.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), as of January 1, 2024, Nigeria’s gas reserves were 209.26 trillion cubic feet (TCF) comprising associated gas of 102.59 TCF and non-associated gas of 106.67 TCF.
IPMAN National Public Relations Officer, Mr. Chinedu Ukadike, in an interview with New Telegraph over the weekend, also urged for more investments into the nation’s gas subsector.
He also stated that more exploration of the gas reserves would create more employment opportunities, increase the foreign revenue of the country, boost the nation’s foreign exchange reserves and increase the standard and quality of life of Nigerians.
According to him, such exploration and marketing activ – ities will also increase the development of the gas subsector and the allied industries. He urged indigenous gas companies to invest in and engage in more exploration of the nation’s gas reserves.
He stated that this would increase their technical and operational capacity as well as their revenue. He said more investment by indigenous companies would be compliant with local content development and position the companies as being capable to match their foreign counterparts.
Ukadike said: “It is an understatement that more gas exploration will increase the nation’s revenue to address national issues and have more gas both for export and domestic use. It will strengthen our naira because Nigeria will earn more foreign exchange.
“The issue of so many naira pursuing the dollar will be gone. Naira will not continue to be at the current exchange rate. Also it will make other goods and services come down. We will have a stable economy. “Investing more in gas will create more employment opportunities, increase living standards and boost Nigeria’s economy.
Such investment must boost employment and also reduce the high poverty level in the country. “Some multinationals are already investing in more gas exploration. But I will encourage more indigenous companies invest more in gas both for domestic use and exports.
Government should invest more in gas exploration and production. It will give us more forex and boost the value chain.” The IPMAN image maker called on the Federal Government to provide conducive environments for IPMAN members to engage in conversion of vehicles to Compressed Natural Gas (CNG) compliance.
He said that independent marketers had enough facilities and filling stations that can be used to facilitate faster CNG conversion penetration in the country. He noted that independent marketers had filling stations in the nooks and crannies of the country and would become a veritable platform for faster actualisation of the FG’s CNG conversion programme.
The IPMAN PRO said the CNG conversion cost was high. Ukadike said: “If favourable environment is made available to use, we will distribute gas to the nooks and crannies of this country.
We have facilities already that can accommodate CNG conversion. It is for the government to use such a platform to expand CNG conversion. “Gas is very peculiar in nature. Once there is gas, distribution is another factor. Conversion of CNG is another issue.
CNG conversion centres and the kits are very expensive. To convert to CNG will cost you about N550,000.00. For vehicles it will cost about N900,000. So it is not as easy as we thought. “I believe that gas would have been an alternative to logistics which will also bring down the pressure on PMS.
Gas is also environmentally friendly and less expensive. “So we are encouraging the President Committee on Implementation of CNG to ensure that Independent marketers centres are being used as conversion centres so that marketers and more people will be acquainted with what it takes to manage CNG compliant vehicles.”
