Nigerian Power Sector Seen as its Biggest Gas Market

Nigeria’s power sector could be the biggest consumer of its natural gas.

The country would benefit more by making use of its vast gas resources to improve the nation’s electric power situation, rather than exporting them to other countries, BusinessDay said citing analysts.

Magnus Nysveen, partner and head of data analysis, Rystad Energy, said: “I think that the gas should better stay in the country because you need it so badly in the country. You have a lot of people who need electric energy and the most obvious source is gas.”

Nysveen said since exports to North America and Europe are not very profitable at current prices, the alternative is domestic gas and that is of course the best for the national economy that the gas is being kept in Nigeria.

Bex Nwawudu, director, CBO Capital Partners stated that there was need for gas pricing that would stimulate gas exploration and production in the country, adding that new ways of production should be encouraged, BusinessDay reported.