Managing director of Rain Oil Limited, Dr. Gabriel Ogbechie has said Nigeria would be able to generate over N10 billion ($27 million) annually if 50 per cent of kerosene users can switch to using Liquefied Petroleum Gas (LPG) or cooking gas.
Ogbechie, who disclosed this while emphasising the need for petroleum marketers to deepen investment in the nation’s gas sector, noted that the proper channeling of flared gas could impact the country’s gross domestic product by about $1 bn per year.
This, he added, has the potential to create over 1 million jobs, 600,000 metric tons of liquefied petroleum gas per year and generate 2.5 gigawatts.
He also said that the federal government’s sustainable national energy plan seeks to deliver and maintain 5 million new off-grid solar connections under a solar power strategy.
‘‘Around 77 million Nigerians, he said, are either underserved by, or completely lack access to the national electricity grid. With almost 8 billion cubic meters of gas flared annually, Nigeria is the seventh-largest gas flaring nation in the world.Nigeria lost N300bn to gas flaring in 7 months of 2020. Speaking on the current uncertainty over petrol price and challenges in the country, he said the Nigerian National Petroleum Corporation(NNPC) has remained the sole importer of Premium Motor Spirit (PMS).
According to him, the federal government paid N725 bn as petrol subsidy in 2019 and spent over N101.65bn on subsidy in Q1 2020
He said subsidy was discontinued in March 2020 by the PPPRA following the crash in the global crude oil price, price modulation, stressing that, PMS pump price was moved from N145/ltr to N125/ltr as landing cost of PMS was N99.44/ltr. As crude oil prices recovered and PMS landing cost increased, PMS pump price were moved to N143.8/ltr in July 2020, N151.56/ltr in Sept 2020, N162/ltr in October and N165/ltr in November 2020, he pointed out.