By yetunde Bada
Gas experts have advised the Federal Government to fix the dysfunctional gas to power value chain, to attract the needed investment to the sector.
The experts gave the advice in Abuja in a communiqué signed by Mr Dada Thomas at the end of the 10th Nigerian Gas Association International Conference and Exhibition.
According to the communique, Nigeria’s gas production at current levels can deliver 32,000 megawatts of power if the gas supply sector issues are addressed.
“In the light of the above, the conference pointed out the need to fix urgently the dysfunctional gas to power value chain to attract the required investment in the sector.
“The illiquidity of the power market requires urgent attention.
“We suggest a rethink of the quality and capitalization of current players and a readjustment of the tariff structure may be required.
“Without a doubt, we must find creative securitisation mechanisms that improve bankability,’’ it said.
It says the solution lays in fixing the gaps in the value chain, avoiding policy summersault, honoring sanctity of contracts, stabilisation of the exchange rate and long term view of fiscal policies.
The document mentioned the threat of security in the Niger Delta and acknowledged government’s effort and progress being made to address the menace.
It said there was a need to establish a Gas Promotion Council to address investment opportunities in the sector, adding that the association was ready to midwife the process.
The communique said the Nigerian Content Development and Monitoring Board must introduce speed, simplicity and collaboration with the industry whilst focusing on in-country value addition.
“Local Content must become a strategic resource that ceases to be an excuse but one capable of ultimately reducing costs in our sector.
“The emphasis must shift to developing competent operators that are encouraged to work collaboratively for the industry.
“There must be strong commitment by all stakeholders to train and build real capacity in the local industry.’’