Lagos — The Federal Government and the Central Bank of Nigeria, CBN have announced a N250 billion intervention fund to boost gas utilisation in the country.
Announced in Abuja by the Permanent Secretary, Ministry of Petroleum Resources, Bitrus Nabasu, the fund is to domesticate the development of the resource and to assist indigenous players in further developing the sector.
Nigeria has over 206 trillion standard cubic feet of gas reserves.
According to Nabusa, the project will be financed under the Power and Airlines Intervention Fund, PAIF in line with existing guidelines and regulations.
He added that the initiative will be an elixir to investment for infrastructure development with a view to optimising domestic gas resources for economic growth while spurring product processing, small-scale petrochemicals and gas cylinder manufacturing plants, as well as LCNG regasification Modular systems.
Nabasu stated that the intervention would encourage motorists to use Compressed Natural Gas, CNG and provide resources for power generation firms besides encouraging the use of Liquefied Natural Gas, LPG for cooking, transportation, and power.
Nigeria is a gas country, however usage remains on the low side.
In a bid to encourage gas usage, the federal government recently declared 2020 and beyond as a decade of gas.
Even with low gas usage in the country, over 56 percent of the consumed resource are imported with the commodity being sold at a high rate.
Special Adviser to the Minister of State for Petroleum Resources on Gas Business Development, Brenda Ataga had earlier said three million jobs would be created across the value chain.
According to her, government would promote awareness and micro-retailing outlets across the federation, adding that the commodity might not be affordable except its development is domesticated.