Mr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced on Monday that Nigeria’s gas reserves are projected to last for the next 94 years.
Speaking at the 16th Nigerian Association for Energy Economics (NAEE) Annual International Conference in Abuja, Komolafe highlighted Africa’s potential to transition to cleaner energy sources with the right leadership, reforms, and adequate financing.
While Nigeria and other African countries with significant hydrocarbon resources continue to exploit their oil reserves, they are gradually shifting their focus towards natural gas as a major energy source. This shift is aimed at ensuring energy security for Nigeria’s large population, estimated to be 200 million.
Komolafe stated that Nigeria has a reserve base of 36.97 billion barrels of oil and 208.83 trillion cubic feet of gas, accounting for 33 percent of Africa’s total gas reserves. With a life index of 94 years, Nigeria is considered a gas-rich nation and the leading gas reserves holder in Africa.
This gas endowment positions Nigeria to play a dominant role in the African gas market and have the potential to supply natural gas across the sub-Saharan region. However, the necessary financing and infrastructure must be in place to achieve this potential.
Komolafe highlighted the significant reforms brought about by the Petroleum Industry Act, 2021 (PIA), in the Nigerian petroleum industry. The Act provides attractive fiscal terms for investors and lower royalty rates for domestic gas, which will stimulate accelerated gas exploration, development, and utilization for industrialization and export opportunities.
The NUPRC is working on developing key regulations and initiatives to facilitate the rapid development and effective production of Nigeria’s gas resources, ensuring enhanced revenue generation and domestic utilization.
Overall, Nigeria’s gas reserves, coupled with the reforms introduced by the PIA, position the country for long-term energy security and the potential to become a major supplier of natural gas in Africa.
