17 April 2015, Lagos – The Chief Executive Officer, Oando Gas and Power Limited, and Executive Director, Oando Group, Mr. Bolaji Osunsanya, has described the Nigerian gas market as not credible yet.
He said the market had yet to move from its interim state to a willing buyer, willing seller era.
Osunsanya, who spoke at a policy dialogue forum organised by The Petroleum Club in Lagos on Thursday, said the Nigerian gas market was currently characterised by huge legacy debts to past suppliers.
The forum was meant to chart a course for the incoming government of the President-elect, Maj.-Gen. Muhammadu Buhari, with regard to the petroleum industry.
Osunsanya said it was high time the government looked at the gas industry the same way it was paying attention to the marginal fields.
He said there was an urgent need for the government to also trail out infrastructure in the sector with Public-Private Partnership model, while also creating alternative funding arrangements for Joint Venture arrangements in the gas sector.
The Oando Gas boss said a market-driven gas market was needed to take the industry to the next level, adding that appropriate capitalisation of the players in the industry was sacrosanct.
“We really need to move away from an interim market to a willing buyer/seller situation. We need to create a credible market,” he said.
According to him, aside the country’s underdeveloped gas infrastructure framework, the commercial structure is also underdeveloped with poor capitalisation of the players.