During the 6th Valuechain Annual Lecture and Awards in Abuja, Vice President Senator Kashim Shettima expressed concern over Nigeria’s modest earnings of approximately $5 billion from gas, deeming it insufficient when juxtaposed with Egypt’s revenue from a significantly smaller gas reserve.
Shettima, addressing the gathering, underscored Nigeria’s immense, untapped gas resources, boasting over 200 trillion cubic feet and ranking 9th globally in proven reserves. Emphasizing the crucial role of gas in the nation’s power supply, he noted that it currently contributes to 80% of power generation and is poised to become the predominant source by the decade’s end.
Represented by Sodiq Wanka, the Special Adviser to the President on Energy and Power Infrastructure, Shettima lamented the existing disparity, stating, “Our production to reserve ratio is less than a third of Egypt’s, less than a quarter of Algeria’s, and around 10% of Malaysia’s.” He highlighted the aftermath of the Russia-Ukraine war, revealing that Nigeria’s largest LNG assets operated below capacity due to inadequate gas supply.
Anticipating a potential demand-supply gap of up to 10 billion standard cubic feet per day (bscfd) by 2030, Shettima urged a strategic focus on midstream gas infrastructure. Acknowledging the timely theme of the event, he emphasized the critical role of gas transport infrastructure and processing facilities.
In conclusion, Shettima expressed satisfaction with the progress of the Ajaokuta-Kaduna-Kano (AKK) pipeline, foreseeing positive implications for the nation’s gas sector as it nears completion.