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Nigerian Government reiterates commitment to reposition gas sector

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Vice President Yemi Osinbajo
Vice President Yemi Osinbajo
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The Federal Government on Thursday, reiterated its commitment to reposition the gas sector for effective service delivery.

Vice President Yemi Osinbajo made this known while declaring open the 2021 World Energy Day Conference in Abuja.

The News Agency of Nigeria (NAN) reports that the conference organised by the Abuja Chamber of Commerce and Industry (ACCI), has as its theme: “Energy Transition: Gas as the Fuel of Choice”.

Osinbajo, represented by the Minister of State for Power, Goddy Agba, stressed the importance of gas in actualising energy transition.

According to him, we cannot execute this transition without gas. Gas enables this transition with options for AutoGas on vehicles and even more importantly gas power to replace dirty coal plants across the world.

“Gas is cleaner than coal or oil and initially was touted as a critical transition fuel.

“Later, climate change policy, particularly in the West, began to turn against gas with very strict policies from many lenders against even funding upstream, midstream or downstream gas projects.

“This has created the scenario we face today with insufficient gas investment without commiserate replacement by renewable leading to scarcity and high prices,’’ he said.

While restating Nigeria’s commitment to lead local and global discussions on the position of gas in the new world order, Osinbajo said that the Federal Government had given the go ahead for the Nigerian Liquefied Natural Gas Train 7.

According to him, Train 7 is more than N10 billion investment that will keep Nigeria in the top five globally in Liquefied Natural Gas and position the country to benefit from the critical role that gas will play in the Energy Transition.

He pointed out that the Federal Government inaugurated the Decade of Gas under the Ministry of Petroleum Resources.

“Mr President said on March 29, when we declared 2020 as “The Year of Gas” In Nigeria, it was to demonstrate our resolve that gas development and utilisation should be a national priority.

“Now, we are going a step further to dedicate this decade to industrialising Nigeria using gas.

“As part of the Decade of Gas, the Ajaokuta-Kaduna—Kano Natural Gas Pipeline set for completion in 2023, will not only allow for gas power and industries across Nigeria but will also create the ability to ramp up renewable.
“This is as we will have base load power to balance intermittent solar power plants that need to be built to meet our climate goals.

The vice president, however, expressed concern over inadequate investments in energy to meet net-zero targets.

“There is simply not enough investment in renewable to support the intended accelerated pace of removal of Fossil fuels.

“Today, fossil fuels satisfy 83 per cent of primary demand for energy.

“Unfortunately, investment in fossil fuels has also dropped by 40 per cent since 2015 without the requisite ramp up in renewable.’’

According to Osinbajo, if we have learnt anything over the past few weeks is that the Energy Transition will not be easy, it will not be seamless and it will not be done without difficult choices.

The vice president said that the risks of trying to make 30-year commitments in reaching net-zero were plain and apparent for all to see.

“The Economist reported that since May, the combined prices of oil, coal and gas increased by 95 per cent. It was also reported that Britain has turned back on some coal-fired power stations.

“I surely believe that the Energy Transition was not meant to make energy less available and unaffordable.

“These events if not handled carefully may turn global public sentiment against climate change policies,’’ Osinbajo said.

Earlier, Dr Al-Mujtaba, the President, ACCI, commended the Federal Government for crafting a gas agenda which became Nigeria’s response to the energy transition question.

According to him, the gas commercialisation agenda, the Autogas initiatives and other policy response have provided much needed answers to Nigeria’s need for energy transition.

Similarly, Mr Olawale Rasheed, the Director Policy, ACCI, stressed the need for Nigeria meeting her target on reduction on carbon emission without undermining national interest.

“Basically, we are saying we need gas it is good for us and gas is cleaner,’’ Rasheed said.

Also speakinhg, Mr Olakpode Sowunmi, Chief Executive Officer CABTRI called for increased capacity to produce more gas.

According to him, the tempo is how we can increase our capacity to produce more gas.

People ask the question we flare a lot of gas why can’t we use that for cooking gas but it is not exactly the same.

“It is like you have water in the river, but that do not necessarily translate to drinking water.

“The gas needs to be processed for it to be useful for domestic consumption,’’ he said. (NAN)

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Business & Economy

Tinubu To Present 2027 Budget Before Year-End As FEC Approves Five-Year Development Plan

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President Bola Ahmed Tinubu
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President Bola Tinubu is expected to present the 2027 Appropriation Bill to the National Assembly before the end of 2026, as the Federal Executive Council (FEC) approved the National Development Plan 2026–2030 and new policy measures aimed at strengthening food security and tackling child stunting.

The Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, disclosed this on Wednesday while briefing State House correspondents on the outcomes of the FEC meeting chaired by President Tinubu at the Presidential Villa, Abuja.

Uzoka-Anite also announced the council’s approval of the Revised National Policy on Food and Nutrition 2026, which seeks to establish sustainable financing mechanisms and strengthen collaboration among ministries responsible for agriculture, livestock, health and education, as well as development partners.

The announcements followed the conclusion of the 32nd Nigerian Economic Summit, held in Abuja from October 26 to 28, which focused on key issues affecting the country’s economic development.

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has clarified that the $21.7 billion borrowing proposal transmitted by President Tinubu to the National Assembly is intended to finance investments in productive assets and infrastructure rather than recurrent expenditure.

Oyedele explained that the proposal represents a multi-year investment programme spanning approximately five years, rather than an immediate drawdown of the entire amount.

According to him, $10.6 billion is earmarked for critical transportation infrastructure, including the Sokoto–Badagry Highway, Lagos–Calabar Coastal Highway and Kano–Kaduna Metro Rail.

He further disclosed that more than $7.9 billion would be sourced from multilateral and bilateral development partners, including $5 billion from the World Bank, at an average interest rate of approximately 2.1 per cent.

The proposed financing package also includes $3.3 billion for state government projects and $1.45 billion for projects in the Federal Capital Territory.

The planned 2027 budget presentation and the approval of the five-year development plan underscore the Federal Government’s efforts to align fiscal planning, infrastructure investment and social development priorities with its broader economic agenda.

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Tinubu Rules Out Fuel Subsidy Return, Says Nigeria Cannot Go Back to ‘Egypt’

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President Bola Ahmed Tinubu
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President Bola Tinubu has ruled out any return to petrol subsidy, insisting that the removal of the policy was necessary to prevent Nigeria’s economy from sliding into bankruptcy.

The President reiterated his position on Monday during a meeting with members of the City Boy Movement, a youth-driven political and advocacy group, where he defended the economic reforms introduced by his administration.

Tinubu said the government could no longer sustain the financial burden of subsidising petrol, arguing that the country lacked the resources required to continue funding the scheme.

“I came, and I removed the subsidy on my first day. Nigeria would have gone bankrupt; there was nothing left to pay for subsidies,” he said.

Using a biblical and Quranic analogy to underscore his position, the President declared that reversing the policy would amount to returning to an unsustainable economic system.

“When Moses (Musa) left Egypt, the Red Sea parted and gave way. You cannot ask Moses to go back to Egypt. With your energy and support, we will never go back to Egypt,” he stated.

The removal of petrol subsidy, announced during Tinubu’s inauguration on May 29, 2023, marked a major shift in Nigeria’s fiscal policy. The decision significantly increased petrol prices and contributed to mounting pressure on household incomes, transportation costs and businesses.

Petrol prices, which were below ₦200 per litre before the policy change, have since risen substantially, with prices reported at between ₦1,350 and ₦1,405 per litre across major filling stations.

The resulting increase in energy and transportation costs has continued to fuel public concerns over inflation, declining purchasing power and the overall cost of living.

However, the Federal Government has maintained that subsidy removal is critical to reducing fiscal pressure, improving public revenue and creating room for investment in infrastructure and other priority sectors.

Tinubu acknowledged the political contest surrounding the policy, noting that his opponents had promised to restore fuel subsidy. He nevertheless maintained that his administration would not reverse the reform.

Beyond defending the policy, the President urged members of the City Boy Movement to mobilise support for his administration by communicating its achievements and future plans to young Nigerians across campuses, markets and rural communities.

He also encouraged eligible young people to obtain their Permanent Voter Cards (PVCs) and participate in the electoral process.

The debate over fuel subsidy remains a central issue in Nigeria’s economic policy, with the government defending the reform on fiscal sustainability grounds while households and businesses continue to grapple with the effects of higher fuel prices.

 

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FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

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Power Station and Meters
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The Federal Government has ruled out any plan to increase electricity tariffs, saying its priority is to improve power supply and ensure reliable electricity across the country.

The Minister of Power, Joseph Tegbe, gave the assurance in Ibadan, Oyo State, on Thursday, amid concerns and speculation about a possible increase in electricity tariffs.

Tegbe spoke during the groundbreaking ceremony for five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS).

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” the minister said.

He urged Nigerians to disregard reports suggesting an impending tariff hike, stressing that the government was focused on improving electricity generation, transmission and distribution.

The five mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. They are expected to provide electricity to communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

According to the minister, the projects are designed to expand electricity access, reduce dependence on petrol and diesel-powered generators, and create a more favourable environment for businesses, investment and job creation.

Tegbe said the Federal Government was also implementing a broader energy strategy aimed at improving electricity supply through designated energy corridors, including the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors.

He added that efforts were underway to strengthen the national grid and upgrade generation and transmission infrastructure across the country’s eastern, western and central corridors.

The minister described the mini-grid initiative as part of President Bola Tinubu’s Renewed Hope Agenda, noting that similar electricity interventions had been implemented in communities across several states with support from the Rural Electrification Agency (REA).

He commended Tinubu for his leadership and acknowledged the contributions of the REA, project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company.

Tegbe also recognised the Oyo State Government, traditional rulers and other stakeholders for their roles in facilitating the projects.

The initiative is expected to improve electricity reliability in the beneficiary communities, support local economic activities and reduce energy costs for households and businesses.

 

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