Editorial
As NLNG Train 7 Kicks Off…
History was made when President Muhammadu Buhari last Tuesday flagged off a much-anticipated project to construct Train 7 of the Nigerian Liquefied Natural Gas (NLNG) in Bonny, Rivers State. Buhari, during the virtual groundbreaking at the NLNG ground, had sought stakeholders cooperation to ensure completion of the Train 7 project “safely and on time” to pave way for a Train 8 expansion.
Buhari, in his charge to stakeholders at the occasion, said, “As we flag off the Train 7 today, I look forward to development and execution of more gas projects by the International Oil Companies (IOCs) and indigenous operators, and more Trains from Nigeria LNG to harness over 600 trillion cubic feet of proven gas reserves we are endowed with”.
Estimated to cost about $6 billion, the project is expected to increase the six processing units (trains) of the NLNG plant at Bonny Island to seven trains. This will increase the current installed capacity of the plant. Led by the Italian multinational, Saipem, with a share of $2.7 billion of the contract value, other members of the consortium are Japan’s Chiyoda Corporation and Daewoo Engineering & Construction of South Korea.
For one thing, Train 7 has added new profiles to the domestic gas sector. A consortium of some Nigerian banks, international development finance institutions, as well as three export credit agencies will provide $3 billion of debt financing for the project, making it the world’s first LNG project with multi-tranche corporate financing.
The Tide applauds the Federal Government’s laudable feat by ensuring the take-off of this long-awaited project. It is hoped that Train 8 will not remain in waiting in the manner Train 7 was delayed. As it is now, the project showcases Nigeria as mainly a gas-rich country to be reckoned with.
It is simply refreshing that NLNG, which was just an ordinary project in the early 90s, has successfully transformed into a very prosperous firm with over 20 years of credible operations and an uninterrupted supply of Liquefied Natural Gas, Liquefied Petroleum Gas and Natural Gas Liquids into the global market. This is positive indication that the nation has enormous capability to provide value to the world by harnessing its natural resources.
Through the Decade of Gas initiative, which was recently launched, Nigeria will be changed into a major gas and industrialised nation with gas playing the key role as revenue earner, fuel for industries and necessary feed for petrochemicals and fertiliser plants.
The NLNG has generated $114 billion in revenues over the years, paid $9 billion in taxes; $18 billion in dividends to the Federal Government and $15 billion in feed gas purchase. These again are estimable achievements by the company’s Management Team that is exclusively Nigerian. With this level of accomplishment, we can only hope that the enterprise continues to grow beginning with this Train 7 project, and position Nigeria to thrive through the energy transition.
A fundamental advantage of Train 7 is its capacity to guarantee every stakeholder more dividends in terms of further reduction in gas flaring, more revenue to the nation and shareholders, more job opportunities, especially at the construction phase and more social investments for the society.
Again, Train 7 will increase NLNG’s overall capacity to 30 million tonnes per annum (mtpa) from the current 22 million mtpa, adding immense value to the nation and the people. The project would stimulate inflow of about 10 billion dollars Foreign Direct Investment (FDI) into Nigeria, create 12,000 direct jobs in Bonny Island and additional 40,000 indirect construction jobs.
Another beneficiary of the project is the domestic Liquefied Petroleum Gas (LPG) market. At the moment, NLNG produces one million metric tonnes of LPG and supplies 350,000 metric tonnes of the product to the domestic market, accounting for 50 per cent of LPG supply in Nigeria.
With the additional capacity of the plant, the production and supply of LPG to the domestic market is expected to increase, thereby deepening the penetration of the low-cost and high efficiency cooking fuel in the country. Compared to kerosene and traditional biomass (such as firewood and charcoal), LPG is considered a cleaner alternative fuel.
Nigeria has ridden on the back of oil for over 60 years, but with the Train 7 project, the country is now set to fly on the wings of gas. However, this projection will be unattainable without a peaceful atmosphere. That is why Bonny and Finima indigenes must see themselves as one and opt for harmonious settlement of the ownership of host community rights saga. The Federal Government should directly intervene in the matter and ensure that the project is not unduly delayed.
Editorial
Strike: Heeding ASUU’s Demands
Editorial
Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
Editorial
Addressing The State Of Roads In PH
