GAS PIPELINES IN NIGERIA: SINE QUA NON FOR ECONOMIC DEVELOPMENT

Abstract

The study reviewed the gas pipeline development in Nigeria and outlines needed strategies needed for sustainable development of gas pipeline for socio-economic development in Nigeria. There is inefficient gas pipeline development framework in Nigeria, based on the existing monopoly of the Nigerian Gas Processing and Transportation Company Limited (NGPTC) managing 1,500 to 2,000 km of gas pipeline all over Nigeria, while this is grossly inadequate to meet the domestic supply obligation. Extensive review of related literature was employed to obtain relevant data and information on the Nigerian gas pipeline. The study shows that gas pipeline is inadequate and additional 5,000km is required to meet the short and medium need, while about 10,000km gas pipeline will be needed in the long run. The study further revealed that gas is major source of revenue as N72.7 billion was generated from between 2017 and 2018. The study also reviewed the eight (8) critical gas infrastructures identified by the federal government of Nigeria, of which Obiafu-Obrikom-Oben (OB3) Pipeline Project and AjaokutaKaduna-Kano (AKK) Pipeline Project has the final investment decision taken and are at construction and detailed engineering phase respectively. The proposed strategy to enhance gas pipelines development in Nigeria should be private sector driven and divestment of all existing gas pipeline infrastructure to private investors in order to ensure sustainable management that would increase the Gross Domestic Product (GDP), create employment and provide access to relatively clean energy. There is also need to have a gas pipeline transmission and distribution act that would stipulate the minimum requirement for gas pipeline investment in Nigeria.