Nigeria has about 13Giga Watt (GW) of electricity generating capacity, a transmission capacity of 5GW and distribution that hovers between 3.5 and 4.2GW. Currently, natural gas accounts for more than 80% of Nigeria’s generating fuel needs. About 30% increase in available generation is possible if the gas constraints are resolved. Natural gas is set to become the leading fossil fuel by 2030 and is expected to replace oil by 2040. Nigeria ranks as the 8th largest country in terms of gas reserves and 13th largest producer of the commodity. Gas consumption, rather than reserve base, is fundamental to economic growth and development. Therefore, domestic use should be the priority whilst the Liquefied Natural Gas(LNG) and export ambitions should be limited. Nigeria consumes 15% of her gas production domestically; exports one third whilst almost a half of the total production is wasted. The electricity sector provides the natural edge for the demand-supply imbalance and there should be sites that can support the embedded generation goals of the Distribution Companies (DISCOs). In Nigeria, there are approximately equal volumes of both associated and non-associated gas, with the latter appearing in small-to medium and sometimes, stranded fields. The appropriate and prompt implementation of swop arrangements, a reinforced commercial framework, the aggressive pursuit of the Gas Master Plan, Government backed instruments and regulation, will culminate in a more robust sector. Vandalism of gas pipelines and transmission infrastructure, which are major pitfalls in the powe industry also have to be addressed. The speedy execution and delivery of a number of on-going infrastructure projects is inevitable. The supply, processing, transportation and distribution challenges in the gas sector need to be handled for optimal performance. Gas prices should not be subjected to a subsidy, thereby politicising it. Its price should be determined by global trends and market forces. It is commendable that some policies and regulations have resulted in the resolution of a number of challenges. The forerunners in the generation sub-sector are also extolled for their ingenuity, resulting in considerable independence in that sub-sector

More than 50 percent of distributed power is consumed free-of-charge. In other words, less than half of customers pay for electricity usage. Power must be realistically priced because it is only through cost-reflective tariffs that the cost of generation will be recovered and investments made in new large-scale generation and transmission projects. Distribution and transmission capacities must significantly increase to warrant further gas supplies.

Source: www.vanguardngr.com