The Federal Government has disclosed that it has reduced the price of gas from 2 dollars 50 cents to 2 dollars 18 Cents, saying the reduction had been approved to deepen the product’s domestic utilisation.
It explained that the reduction, alongside successful completion of the Ajaokuta-Kaduna-Kano, AKK Project in 2023 would enhance domestic gas utilisation as the mainstay for national industrialisation.
The Minister of State for Petroleum, Timipre Sylva, said that the moves were in line with the government’s commitments to realizing the inherent potentials of gas usage as a national catalyst for achieving economic diversification from crude oil and as transition period to the renewable energy.
“Let me use this medium to announce that following successful negotiations between Federal Government of Nigeria and organized unions, the price of gas has been reduced from $2.50 Cents to $2.18 Cents, with immediate effects,” Sylva disclosed on Thursday at the opening ceremony of the 2021 Gas Sector Stakeholders (AKK) Forum organised by the Gas Aggregation Company Nigeria (GACN) in Kano.
He revealed that the AKK project would also increase government revenue and create more jobs opportunities for the unemployed Nigerians.
The minister said that many companies had been shut down due to power supply problem across the country. He explained that it would take two to three years to reactivate those industries to their optimal performance.
Also speaking, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said that the AKK project had been on the drawing board for the past 30 years. Kyari said that when completed, it would provide enough gas for both domestic and export purposes.
“Nigeria has huge gas resources, gas means prosperity and delivering gas is an opportunity creation,” he said. He pointed out that the project would revive about 232 industries along AKK corridor.
In his remarks, the Emir of Kano, Aminu Ado-Bayero, commended the government for the project, which he said, would also assist to enhance socioeconomic activities in the state.
He said that using gas for domestic purposes would assist to create more job opportunities, reduce deforestation and enhance livelihood of people. Ado-Bayero, however, called on Nigerians to continue to pray for leaders to enable them continue to execute development projects.