Petroleum Industry Act 2021 and Natural Gas Development in Nigeria: Matters Arising

Abstract Until recent times, gas utilization in Nigeria has been low-key. The need for transiting to a cleaner source of energy has made natural gas a desired source of energy because it burns cleaner than fossil fuel. To fulfill the need for energy transition in Nigeria, National leaders and policymakers have joined the global accord towards finding cleaner energy sources to address the imminent dangers of climate change and ensuring environmental sustainability. Natural gas is considered a cleaner energy source than the rest of the fossil fuels and has the potential to occupy a major share in the global energy mix of the future. Nigeria is endowed with vast Natural Gas resources, with an estimated 2P reserve of circa 208.62 Tcf (as of 1/1/2022). Over the years, production of natural gas in Nigeria has been hovering around (6.5 to 8.5 bcf/d). Out of these volumes, only around 15% (i.e. 975 to 1,275 MMscfd) supplies to the domestic market. At this rate, the domestic utilization of natural gas in Nigeria is very low compared to the existing demand and opportunities for gas in Nigeria. In an effort to promote domestic gas utilization, the Federal Government has over the years developed many laudable programmes and policy interventions with a view to stimulating the growth of the sector. Prominent among these is the recent declaration of the Decade of Gas (DoG - 2021); the National Gas Expansion Programme (NGEP - 2020); Nigerian Gas Flare Commercialization Programme (NGFCP – 2018) and National Gas Policy (NGP – 2017). Similarly, the Federal Government of Nigeria via the Central Bank recently rolled out a financing programme tagged "Gas Intervention Funds" to the tune of NGN 250 billion to support the development of the gas sector in the country. This paper seeks to discuss the vast natural gas resources in Nigeria vis-à-vis the numerous government interventions with a view to identifying and unlocking the opportunities available in harnessing the potential of the gas sector in Nigeria. Furthermore, the paper shall also outline the threats militating against the realisation of these potentials and proffer some recommendations.