January 3, 2023 10:26 AM
Ezigbo also noted that since the federal government failed to fund the much-discussed “decade of gas”, the private sector must be encouraged to take the lead. “The tariffs must be cost reflective and accommodate acceptable investor returns, and in this regard, the market must be allowed to determine the acceptable and competitive tariff levels that encapsulate value chain cost from production, processing, transportation, and distribution.”Ezigbo also said the cost and tenure of gas infrastructure funding, if any, are also a major constraint, with local financing institutions struggling to provide the quantum and tenure of funding required.
“One clear thing is that the government does not have the resources, nor is its structure aligned enough to ensure continuity and timely delivery of the objectives of the programme,” he said. This is a major problem for the gas sector given that power offtakes the bulk of gas delivered into the domestic market, he said.
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