11 August 2015, Abuja – The Federal Government would require a total amount of $2.3bn (N453.1bn) for the 2,300 kilometers of pipelines identified under the Nigeria Gas Master Plan, a study conducted by the Centre for Social Justice has revealed.
The report, a copy of which was made available to our correspondent in Abuja on Tuesday by the Lead Director, CSJ, Mr. Eze Onyekpere, revealed that depending on the terrain, it would cost between the sum of $800,000 and $2m to develop a kilometer of gas pipelines.
It said the funding could be done through various dedicated financing channels.
Some of them are the channeling of part of the $18bn unremitted oil funds identified by the Nigerian Extractive Industry Transparency Initiative when it is recovered; dedicating the proceeds of Federation Account dividends and tax from existing Bonny LNG Company to new gas investments.
It also recommended the scrapping of fuel subsidy and channeling the about N1trn a year subsidy budget to the funding of the masterplan, as well as floating dedicated bonds and developmental loans including Diaspora Bonds to fund the gas masterplan.