According to the utility companies, since the cost of gas remains one of the key determinants of the electricity tariff in Nigeria, it is high time the government found a way to reduce the price for the sustainability of the power sector.
Minister of State for Petroleum Resources, Timipre Sylva, had earlier said the move would help deepen the use of Liquefied Petroleum Gas, popularly called cooking gas, as well as Compressed Natural Gas “Most of Nigeria’s power generating plants are thermal plants. They use gas as their fuel and as long as the price of gas is high, the cost of generation – and the eventual tariff to the end user will also be high.
“As we all know, today, the price of gas for local power production is a little over three dollars for one million British Thermal Units . Meanwhile, in this same country, the cost at which LNG exports gas is less than half the same amount. If you also consider that some of these IOCs are still flaring this much-needed gas into the atmosphere, you will realise that there are many options available to the government to intervene in the quest to make electricity more affordable,” he stated.