FG must settle gas-to-power issues

Given the critical role of power in industrialisation process and, ultimately, in the economic development and growth of any nation, the recent call by the World Bank to the Federal Government to sort out the nation’s gas-to-power issues is very apt. It could not have come at better time than now that average daily power supply in many parts of the country is about two hours, while some quarters are left without power supply for weeks, with electricity companies blaming gas challenges and pipeline vandalism. It is therefore a clarion call to the Muhammadu Buhari administration to look deeper into the problems associated with gas development, transportation and distribution so as to make it useable for the power sector.

Development of the gas sector is indeed the catalyst required to catapult the nation’s industrial development and enhance its aspiration to attain global relevance in energy sufficiency and accelerated growth. The multiplier effect of steady power supply is very huge, especially for a country like Nigeria which has a large population of unemployed youths. If gas is made available in the required quantum for power and other gas-based industries in the country, the resultant effect would be rapid growth and development of the Nigerian economy.

Compared with petrol or diesel which, by the way, are not environment-friendly, gas remains the cheapest way to generate electricity per kilowatt unit of power. Moreover, as the price of crude oil continues to slide, the development of gas resources, especially for generating electricity, needs to be given priority attention in order to mitigate the effects of the falling crude prices. With power sector properly fixed through steady supply of gas, the nation’s economic base would expand and this would lead to creation of other jobs that would help boost the economy.

To do this, however, the government needs to give incentives to private investors to develop gas fields as it seems not to have enough resources to do this. International oil companies as well as some indigenous operators that have the capital to develop the fields should therefore be encouraged to invest in the gas sector. Key to this is the issue of commercial pricing for gas. The government must also look seriously into the issue of gas infrastructure.

Furthermore, with the claim that the Nigerian Gas Company spends a minimum of N120 million every month to fix damaged pipelines, the government must as a matter of urgency take decisive steps to end pipeline vandalism and deal with pipeline vandals whose activities have served as disincentive to investments in the sector. It is the opinion of many experts that the nefarious activities of vandals have persisted because of government’s apparent lack of political courage to tackle the problem.

That Nigeria has some of the best gas reservoirs in the world is no longer news. However, experts say what the country needs now is not just the best technology but skilled hands to manage the technology. This then is a call to the government to also, in collaboration with the private sector, work out the best way to develop and retain skills in this crucial sector of the Nigerian economy.

The time is now to end the perennial power problems in the country. This was the hope of Nigerians in the wake of the privatisation of the assets of the unbundled Power Holding Company of Nigeria (PHCN). This hope must not be dashed.