Oil & Energy

Nigeria’s Gas Utilisation Increases VAT

Published

7 years ago

March 11, 2019

Value added tax data published recently by the National Bureau of Statistics show gas contribution to that basket has been steady and growing in the last five years.
This means that there have been productive activities which are creating value along the gas chain and attracting VAT, which is a function of value creation in any sector of the economy.
An increasing VAT means the sector is expanding and creating taxable value.
Gas contribution’s steady growth points to growing adoption and utilisation amid a raft of challenges regarding gas pricing and infrastructure.
In 2014, gas contributed N3.32 billion to the VAT basket out of a total of N129 billion and in 2015 gas raked in N3.30 billion out of N759 billion.
Gas utilisation covers a range of projects involving marketing and distribution of natural gas for commercial purposes and includes power plant, liquefied natural gas, gas to liquid plant, fertilizer plant, gas transmission and distribution pipelines.
In 2016 gas realised N4.51 billion out of N777 billion and in 2017 it gathered N5.47 billion out of N972 billion.
In 2018, gas garnered N5.74 billion out of N1.10 trillion that comprised the VAT basket.
Nigeria’s Federal Government has in recent times sought to change the narrative of gas adoption and utilisation in the country. One of the significantly big plans before the FG is the Gas Master Plan (GMP) of 2008.
This was aimed at leapfrogging the level of gas utilisation in Nigeria and to provide stimulus for development and production of natural gas in Nigeria.
According to Nigerian Gas Flare Commercialisation Programme (NGFCP), Nigeria loses approximately $1 billion of revenue through gas flaring due to its inability to capture and sell flared gas in the country. But Nigeria will need $3.5 billion worth of inward investments into gas capture technologies to achieve its flare gas commercialisation targets by 2020.
With many gas utilisations projects at various stages of completion in the country, the sad commentary is still that existing gas infrastructure is insufficient to meet gas demand from the power sector, commercial customers, industrial and exports needs.
There is still need for investments in new pipelines and other gas gathering, processing and storage infrastructures.

Oil & Energy

FG Inaugurates National Energy Master Plan Implementation Committee

Published

22 hours ago

September 22, 2025

Uchechukwu Okwum

The Federal Government has inaugurated the National Energy Master Plan Implementation Committee (NEMiC), in a major step towards repositioning Nigeria’s energy sector.

Minister of Innovation, Science and Technology, Uche Nnaji, disclosed this in a Statement issued by the minister’s Senior Special Adviser, Robert Ngwu, in Abuja, at the Weekend.

According to the statement, the inauguration which marked the beginning of the full implementation phase of the National Energy Master Plan (NEMP), tasked the committee with the responsibility of spearheading the country’s transition to a cleaner, more inclusive and sustainable energy future.

Nnaji urged the committee to deliver real impact to households, industries, and communities nationwide.

“The National Energy Master plan is not just a document; it is a blueprint for transforming our energy landscape. NEMiC must fast-track the deployment of energy solutions that are reliable, affordable, and climate-friendly.

“The work you do will directly influence Nigeria’s economic growth, social progress, and environmental sustainability,” the minister said.

Nnaji expressed optimism that the committee would deliver on the assignment.

“The decisions and actions taken by this Committee will define Nigeria’s energy trajectory for decades to come.

“This is a responsibility of the highest order, and I am confident NEMiC has the capacity, the vision, and the commitment to rise to the occasion,” he said.

It would be noted that NEMP is a comprehensive framework designed to guide Nigeria’s energy diversification, strengthen energy security and align national development with global climate action goals.

Constituted on Oct. 17, 2024, by the Energy Commission of Nigeria (ECN), NEMiC is tasked with mobilising funding and investing in renewable energy infrastructure.

It also has the responsibility of accelerating the deployment of technologies that expand access to reliable and affordable power.

The committee would oversee projects across solar, wind, hydro, biomass, and other emerging technologies while also advancing the operationalisation of the National Energy Fund, meant to channel resources into domestic energy efficiency and infrastructure projects.

Oil & Energy

How Solar Canals Could Revolutionize the Water-Energy-Food Nexus

Published

22 hours ago

September 22, 2025

Uchechukwu Okwum

Globally, demand for food, water, and energy is sharply on the rise. The World Economic Forum says that by 2050, food demand could increase by over 50%, energy by up to 19% and water by up to 30%. The increasing scarcity of these resources – and potential solutions to their sustainable management – are deeply interconnected, calling for integrated solutions.

“Disruption in one amplifies vulnerabilities and trade-offs in others,” wrote the World Economic Forum in a July report. “Such disruptions also create opportunities for sustainable growth, enhanced resilience and more equity.” The idea of synergistic nexus solutions is starting to pick up steam in both public and private sectors.

A new project in California, aptly named Project Nexus, aims to do just that. The novel project seeks to find synergies for water management and renewable energy production in some of the nation’s sunniest and most water-stressed agricultural lands by covering miles and miles of irrigation canals with solar panels, yielding multiple benefits for the water-energy-food nexus.

While the panels generate clean energy, they also shade the canals from the harsh desert sun, mitigating water loss to evaporation and discouraging the growth of aquatic weeds that can choke the waterways. Plus, the presence of the water acts as a built-in cooling system for the solar panels. The $20 million state-funded initiative could produce up to 1.6 megawatts of renewable energy “while producing a host of other benefits,” according to a report from SFGATE.

In addition to these benefits, placing solar panels on top of existing agricultural infrastructure could offer key benefits compared to standard solar farms. They are more easily and quickly greenlit, as they don’t face the same land-use conflicts that utility-scale solar farms are facing across the nation. Plus, “placing solar panels atop existing infrastructure doesn’t require altering the landscape, and the relatively small installations can be plugged into nearby distribution lines, avoiding the cumbersome process of connecting to the higher-voltage wires required for bigger undertakings,” reports Canary Media.

The result of Project Nexus and similar models appears to be a win-win for water, energy, and food, all while using less land. “The challenges of climate change are going to really force us to do more with a lot less … so this is just an example of the type of infrastructure that can make us more resilient,” says project scientist Brandi McKuin. While Project Nexus isn’t releasing figures on the project’s performance until they have a full year’s worth of data, McKuin says current analysis shows that the project is on track to meet its projected outputs.

Project Nexus is not the first project to place solar panels over canals, but it’s still among just a handful of such projects in the world. The United States’ first and only other solar canal project came online late last year in Arizona, where the project produces energy for the Pima and Maricopa tribes, collectively known as the Gila River Indian Community. While many large-scale renewable energy projects have run up against land-use issues with tribal lands, the Arizona project shows that the canal model can be an excellent alternative solution.

“Why disturb land that has sacred value when we could just put the solar panels over a canal and generate more efficient power?” David DeJong, director of the Pima-Maricopa Irrigation Project, was quoted by Grist. In keeping with the spirit of water-energy nexus solutions, the Project is currently developing a water delivery system for the water-stressed Gila River Indian Community.

Of course, these pilot projects produce a whole lot less energy than utility-scale solar farms. But research suggests that if the solar canal idea is scaled across the United States’ 8,000 miles of federally owned canals and aqueducts, it could have a significant impact. In 2023, a coalition of environmental groups calculated that installing panels on all that existing federal infrastructure could generate over 25 gigawatts of energy and potentially avoid tens of billions of gallons of water evaporation at the same time.

By Haley Zaremba

Oil & Energy

Dangote Refinery Resumes Gantry Self-Collection Sales, Tuesday

Published

22 hours ago

September 22, 2025

Uchechukwu Okwum

Dangote Petroleum Refinery and Petrochemicals Limited has announced that it will resume self-collection gantry sales of petroleum products at its facility beginning tomorrow, Tuesday, September 23, 2025.

This is revealed in an email communication from the Group Commercial Operations Department of the company, and obtained by Newsmen, at the Weekend.

The decision marks a reversal of a directive issued earlier, which had suspended self-collection and compelled marketers to rely exclusively on the refinery’s Free Delivery Scheme.

The company explained that while gantry access is being reinstated, the free delivery service remains operational, with marketers encouraged to continue registering their outlets for direct supply at no additional cost.

The statement said “in reference to the earlier email communication on the suspension of the PMS self-collection gantry sales, please note that we will be resuming the self-collection gantry sales on the 23rd of September, 2025”.

Dangote Petroleum Refinery also apologised to its partners for any inconvenience the suspension may have caused, while assuring stakeholders of its commitment to improving efficiency and ensuring seamless supply.

“Meanwhile, please be informed that we are aggressively delivering on the free delivery scheme, and it is still open for registration. We encourage you to register your stations and pay for the product to be delivered directly to you for free. We sincerely apologise for any inconvenience this may cause and appreciate your understanding,” it added.

It would be recalled that in September 18, 2025, Dangote refinery had suspended gantry-based self-collection of petroleum products at its depot. The move was designed to accelerate the adoption of its Free Delivery Scheme, which guarantees direct shipments of petroleum products to registered retail outlets across Nigeria.

The company had also explained that the suspension would help curb transactions with unregistered marketers, either directly at its depot or indirectly through other licensed dealers.

The refinery stressed that the earlier decision was an operational adjustment aimed at streamlining efficiency in the downstream supply chain.

It further warned that any payments made after the effective suspension date would be rejected.