Editorial
No To Gas Pipelines To Europe
Coming on the heels of the smoldering war between Ukraine and Russia, which currently holds out an impendence to gas supply to European countries, the Nigerian National Petroleum Company (NNPC) Limited said it was working on building pipelines that would convey gas from Nigeria to Europe.
The NNPC’s Group Managing Director, Mele Kyari, disclosed this while speaking virtually at the Atlantic Council Global Energy Forum. The forum was hosted in the United Arab Emirates (UAE). He stated that Nigeria was gradually moving away from dirtier fuel to cleaner energy, and added that gas had been picked by the Federal Government as the country’s transition fuel.
Kyari said, “What we are doing is some kind of replacement such that we move from the dirtier fuel to cleaner fuel which is gas. And what we had to do is to build the enormous gas infrastructure required to ensure that there is sufficient supply of gas into the domestic market and provide some for the international market.
“And more than that, within the West African context, you will see that energy inefficiency and poverty that you see in Nigeria is also in many West African countries around us. Therefore, we are trying to see how we can build a network of pipeline infrastructure that will deliver gas and potentially to jump into Europe through Morocco or through Algeria.”
The Minister of State for Petroleum Resources, Chief Timipre Sylva, similarly spoke to a delegation from the European Union (EU) saying that Nigeria was ready to step in as an alternative gas supplier to Europe. Sylva, however, urged the EU to step up investments in gas and hydrocarbon in Africa’s giant so that the country would be able to help meet its energy needs.
Apart from being amongst the leading oil and gas producers in Africa in 2022 with over 37 billion barrels of crude oil reserves, Nigeria, no doubt, has the potential to improve its energy exports to Europe and help address anticipated crude oil and natural gas shortages. With the EU planning to ban crude oil imports from Russia by increasing trade with other non-Russian economies and the Russian government promising to cut gas supplies if sanctions from Western countries continue, potential supply disruptions to Europe are anticipated.
Following Russia’s war with Ukraine, it has become more pressing than ever that Europe finds new energy sources, whether gas or renewables. But, switching to renewables takes time, and gas is the transition fuel of choice while Europe expands its renewable energy capacity. So, the short to medium-term solution is to find other gas sources. This is an opportunity for Nigeria to increase gas export and greatly improve its revenue profile.
Nigeria’s massive production capacity in 2022 will certainly place the country among the top three producers in Africa and a potential supplier to meet demand in Europe. The country has an estimated gas reserve of 209 trillion cubic feet and will produce 1,780 billion cubic feet in 2022, up from 1,450 billion feet in 2021. With this portfolio, Europe can truly look to Nigeria as a potential supplier. This, indeed, is a positive.
Another positive is the enactment of the Petroleum Industry Act (PIA) which will assist with the increase in international majors and investors entering Nigeria. The PIA is expected to provide clarity on taxation, investment, and licensing that previously slowed down project deployment. When fully operational, the law will boost investment in oil and gas upstream activities to improve exploration, production, infrastructure development, and the country’s energy portfolio.
However, while the gas deal with the EU has enormous economic prospects for the country, the Federal Government must ensure that there is no further delay in tackling upstream issues like vandalism of infrastructure, a continued lack of investment in new exploration activities, and political instability including civil unrest in the oil and gas-rich regions. These factors have kept on disrupting the country’s ability to optimise oil and gas production and increase exports. If not efficiently handled, the planned export of gas to Europe will be a wild goose chase.
Although Nigeria is rich in oil and gas resources, it still does not have adequate infrastructure such as a functioning refinery. To utilise its oil and gas resources effectively, the nation needs to first build more infrastructure locally to process its energy. Additionally, our current natural gas-producing fields are expected to see a steep decline as we approach the mid-2020s. Majors including ExxonMobil, Shell, and Total Energies are expected to diversify their portfolios from 2022 onwards and exit the market.
Furthermore, it is worth noting that more than 50 per cent of the Nigerian population is still living in energy poverty as the country has been unable to provide energy for its citizens. It can hardly be comprehended why the government’s priority is to export natural gas while there is a severe dearth of the product for domestic use. Hence, the gas project should be put on hold until the impending issues are resolved for Nigeria to be a ready alternative for Europe in situations of urgency.
Even the Liquefied Petroleum Gas (LPG) is exorbitant and unaffordable. Nigerians have consistently cried out to President Muhammadu Buhari over the high cost of the LPG, otherwise called cooking gas, in the country, prodding him to take drastic measures to crash the price of the product in the interest of the masses. The cost of acquiring a 12.5 kg cylinder of household cooking gas increased to N8,500, as of March 28, 2022, from N7,000 recorded in September 2021.
The persistent hike in the price of cooking gas fused with the waning purchasing power of the average Nigerian does not bode well for the ceaseless adoption of LPG by both rural and urban dwellers; it is outrightly counterproductive to the government’s widely publicised LPG policy. Considering that LPG is environment-friendly, convenient, and safe, there is a need for government’s direct intervention to make the commodity more affordable to most Nigerians.
Editorial
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Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
Editorial
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