Tinubu urges NLNG to turn gas flaring into profit for Nigerians

President Bola Tinubu has called on Nigeria LNG Limited (NLNG) to cut down on gas flaring and make sure Nigeria gets more economic benefits from its gas resources.

The President made this appeal on Wednesday when he met with members of the NLNG board, led by Managing Director and Chief Executive Officer, Adeleye Falade, at the State House in Abuja.

This information came from a statement by the President's Special Adviser on Information and Strategy, Bayo Onanuga.

President Tinubu emphasized that Nigeria should not just focus on earning money from gas resources. He said the country needs to use these resources to meet local energy needs and lessen the environmental damage caused by gas flaring.

“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 said.

He urged NLNG to make sure the benefits of Nigeria’s gas resources reach local consumers.

“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 added.

The President asked for more attention to domestic energy needs and pricing, saying that Nigerians should feel the advantages of the country’s natural resources.

“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 praised NLNG’s management for boosting the company’s capacity and improving its returns.

He said his government is ready to give incentives to help the company grow further.

“If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that.”

He pointed out that Nigeria’s resources will only be valuable when developed and used to support the economy and improve citizens' welfare.

“We look straight far into the future, and I believe that this country has what it takes; but whatever asset that we have in the ground is nothing unless it’s brought up to service the economy, the people, and realization of a good return on investment,” he said.

In his briefing to the President, Mr Falade stated that NLNG has generated over $150 billion since it started, with its shareholders receiving about $47 billion in dividends.

The Nigerian government owns a 49 percent share in the company.

He explained that the company had previously worked at around 60 percent capacity due to challenges in achieving optimal crude oil production, limiting operations to four out of its six production trains.

He added that increased oil production has allowed the company to boost its operating capacity to five trains, with more improvements expected.

According to him, NLNG is also making plans to launch Train Seven, which will increase the company’s capacity by 35 percent.

NLNG currently represents about five percent of the global LNG market, he said.

Mr Falade also told the President that the company’s liquefied petroleum gas (LPG) production, commonly known as cooking gas, is focused on the local market.

The NLNG CEO informed the President that the Bonny-Bodo Road and Bridge project, funded by the company, has been completed and is waiting for official commissioning.

Mr Falade also mentioned that NLNG’s shareholders praised the stability of Nigeria’s fiscal environment, which is attracting investment.

He recognized security agencies and regulators in the oil and gas sector for their contribution to this stability.