President Bola Tinubu, on Wednesday, charged the Nigeria Liquefied Natural Gas Limited (NLNG) to deepen domestic gas utilisation, tackle gas flaring and ensure that the country’s abundant gas resources translate into cheaper energy for ordinary Nigerians.
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The President said Nigeria’s energy resources would be of little value if they remained underground or failed to improve the lives of citizens, stressing that NLNG must balance its drive for increased revenues from the international market with the need to ease the energy burden at home.
Tinubu spoke while receiving the Board of Directors and Executive Leadership of NLNG, led by the company’s Managing Director, Adeleye Falade, at the State House, Abuja.
He specifically urged the company to find ways of converting gas currently being flared, which constitutes an environmental liability, into an economic resource that would benefit Nigerian consumers.
“I am inspired to understand that you are not limiting yourselves to the gradual objective of upgrading. My major concern is the domestic utilization. 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 republic,” the President said.
Tinubu acknowledged NLNG’s efforts to expand its operations and take advantage of growing international demand, but insisted that Nigerians must also feel the impact of the company’s success through greater domestic availability and affordability of gas.
“Yes, you are doing great to really want the revenue up and taking advantage of international interest to build up what Nigeria might derive in benefits, but help us back home”, he said.
The President commended the company’s leadership and board for sustaining the vision behind the establishment of NLNG, saying he was encouraged by the teamwork and direction of the organisation.
“I enjoy the teamship and the way the energy is going, and you all as team leaders are giving value to what was the initial objective of the company,y” he said.
Tinubu assured the NLNG leadership that his administration was prepared to provide further incentives necessary to stimulate growth and expand the company’s capacity.
“Any other incentive that might be necessary to stimulate growth and expand your capacity, I will be willing to do that”, he said.
He, however, stressed that such expansion must ultimately serve the Nigerian economy and people, noting that the country’s natural resources could only have meaningful value when harnessed productively.
“We look straight far into the future, and I believe that this country has what it takes, but whatever assets 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,” Tinubu said.
The President pledged continued government support for the company to increase its contribution to the economy, while reiterating that the welfare of Nigerians should remain central to its operations.
“So, I don’t see any other way to slice it, but to work hard to encourage and incentivize your team to achieve more for the country. I think that is the primary focus, but just think of our people, the need for domestication of some of these energy requirements and pricing mechanism that ordinary man will feel,” he added.
Speaking with journalists after the meeting, Falade said the President’s emphasis on domestic energy availability aligned with NLNG’s plans to expand production, particularly through the ongoing Train 7 project.
He said NLNG would continue to pursue operational efficiency and discipline while strengthening its role in Nigeria’s energy security, revenue generation and employment creation.
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Falade said the company currently sends all its cooking gas production to the Nigerian market and would maintain that policy.
“Nigeria LNG continues to play at the heart of energy security for the country. So we’re not only generating revenue, but we’re also generating employment. But we’re making cooking gas available domestically. 100% of our cooking gas in Nigeria comes into the Nigerian market, and nothing is going to change from that,” he said.
According to him, the company’s growth must go hand-in-hand with Nigeria’s broader development, with the board committed to ensuring that expansion at NLNG produces tangible benefits for the country.
“You will see the board that continues to support the Nigeria agenda, making sure that the growth that we are having as a company that grows speaks also to development of the nation,” he said.
Falade said the Train 7 project currently under construction had about 16,000 people working on the site and had already stimulated economic activities in several businesses and construction yards.
He disclosed that the completion of Train 7 would increase NLNG’s capacity to supply cooking gas to the domestic market by 50 per cent, directly responding to Tinubu’s demand for greater domestic benefits from the country’s gas resources.
“So today we are constructing Train Seven, about 16,000 people working on that site, have been working on it for years, and we’re looking forward to when we will bring that train online.
“Bringing it online is not just about the molecule, but it’s the transformation that comes with it. So the cooking gas that Mr. President said we should think about, we will add 50% capacity to that when Train 7 comes on and we can’t wait to see that happen,” Falade said.
He said the project had already created opportunities beyond NLNG itself, with several businesses benefiting from construction activities associated with the expansion.
“We’ve seen many businesses that have thrived as a result of Train 7, many construction yards that have come alive. So we see a lot more scaling up in terms of what Nigerians can expect,” he said.
Falade said the company would continue to operate responsibly, generate revenues for its stakeholders, support its host communities and create opportunities for Nigerians while becoming increasingly relevant to the country’s economic development.
Reflecting on his leadership of the company, the NLNG Managing Director said he was conscious of the responsibility that came with heading an institution central to government’s expectations for the energy sector.
“It’s been quite interesting. I think the first thing you feel is the weight of the responsibility of leading such an institution that is at the heart of expectation for the government, and that weight is not lost on us,” he said.
Falade added that the company had enjoyed support from its directors, regulators and the Federal government, describing Tinubu’s reaffirmation of support during Wednesday’s meeting as encouraging.
He said Nigerians should expect NLNG to scale up its existing operations, improve efficiency and continue contributing to employment, domestic energy security, community development and government revenues.