President of the Nigerian Gas Association, NGA, and Managing Director, Oando Gas & Power Limited, Mr. Bolaji Osunsanya, yesterday, called on the Federal Government to increase the prices of gas, stating that the country is losing an estimated $55 billion, about N11 trillion worth of investment due to its refusal to hike gas prices.
Speaking in an interview with Bloomberg Television, Osunsanya said Nigeria has to raise its gas prices to attract an estimated $55 billion of investment needed to plug persistent local shortages.
According to him, the Federal Government’s decision to increase gas prices for power companies in August to $2.50 for 1,000 cubic feet from about $0.50 is not enough.
He said, “These investments are needed to explore for more gas, set up five processing facilities at about $2 billion each and develop domestic distribution channels, he said.
“We should incentivise people with the best reward and encourage people to come into the fold. The strategicness of gas is what I wish Nigeria would take more seriously.”
“We should encourage more exploitation to bring out the gas for domestic. A lot of it needs to come quickly because there’s an existing power side that requires a lot of gas.