Mr. Tosin Thompson, the CEO of Mezovest, has made a plea to the Federal Government, urging them to price locally sourced gas in Naira instead of dollars. Speaking at the Avalon Policy Dialogue on Gas, Thompson emphasized the potential for cost efficiencies in the gas sector with increased participation of small businesses in the gas distribution network.
Thompson emphasized that pricing local gas in dollars for local demand is unnecessary, and he believes that involving more small businesses in the distribution of gas can reduce arbitrage and lead to lower prices.
At the same event, Mr. Folarin Lajumoke, Executive Director at DAMAS, stressed the importance of comprehensive policies that promote the use of local gas. He highlighted that over 75% of Nigeria’s Total Energy Supply (TES) is currently sourced from inefficient biomass, such as firewood and charcoal. Replacing these sources with LPG (liquefied petroleum gas) would not only boost the economy but also benefit the environment. However, affordability is a key factor, which can be achieved through market efficiency.
According to a report by Vanguard, Lajumoke also pointed out the need for infrastructure development, particularly pipelines connecting processing plants to markets across the country. This infrastructure investment could make the sector more attractive to investors and potentially lead to gas exports to neighboring countries.
He emphasized the vast opportunities in Nigeria’s gas sector due to high demand and called for the government to create an investment-friendly environment. Lajumoke believes that once investors see a clear path to the market, investments will follow.
The discussion at the event highlighted the potential economic growth, energy sustainability, and environmental benefits of utilizing local gas resources effectively.
