The CEO of Mezovest, Mr. Tosin Thompson, has called on the Federal Government to price local gas for local demand in Naira.
He said this at the Avalon Policy Dialogue on Gas where he spoke extensively on how efficiencies in the gas sector can lead to wealth and job creation.
Thompson explained that increased participation of small businesses in the gas distribution network could lead to cost efficiencies.
In addition, he stressed the need for government to focus on regulation and tax collection while allowing the private sector to drive efficiencies.
His words:"There is no reason why gas that is sourced locally, for local demand, should be priced in dollars.
"When more small businesses come into the ecosystem to participate in the distribution of gas, you're creating efficiencies, reducing and eliminating arbitrage. And we will see prices come down."
Also speaking at the event, Mr Folarin Lajumoke, Executive Director at DAMAS, stated that "There is the need for comprehensive policies that promote local gas usage, which could contribute significantly to economic growth and energy sustainability. Over 75% of Nigeria's Total Energy Supply (TES) is made up of biomass, primarily firewood and charcoal. This is inefficient and detrimental to the health of the people. Replacing this with LPG will not only boost the economy but is also environmentally friendly. Howver, this needs ot be affordable. Affordability will come about once the market becomes efficient. We have the demand and we have the available resource, what is lacking is the infrastructure.
"We need to build pipelines that connect processing plants to markets across the country as that is what will make investments in this sector attractive. With adequate infrastructure, investors in the sector could look to supply neighbouring countries with gas"
Furthermore, Folarin admitted that the opportunities in Nigeria are vast - due to high demand, and capitalizing on this demand could drive economic development and energy security.
Continuing, he decried the level of investment in the sector, stating that government needs to make the country investment-friendly. He argued that "once investors can see a route to market, investment will follow."
