Nigeria has announced the reduction of price of natural gas to power plants from $2.50 to $2.18 per standard cubic feet.
The Minister of State for Petroleum, Timipre Sylva, disclosed this on Thursday at the opening of 2021 Gas Sector Stakeholders’ Forum for the optimisation of Ajaokuta–Kaduna–Kano Gas Pipeline project held in Kano.
With the slight reduction in the price of gas to energy producing firms, Nigeria may, henceforth experience appreciation in electricity, supply and reduce several billions of naira loss by energy companies.
Sylva, who emphasised the inherent impact of the gas price, stressed that the resolution for the $0.32 cent reduction was made after negotiation between the Federal Government and Nigeria Labour Congress.
The minister, who said that the government was ready to actualise the gas revolution, especially in the northern part of the country, stressed that the AKK project would provide avalanche of opportunities for investors.
According to him, the actualisation of the pipeline project, which is expected to supply over 2.2 billion cubic feet of natural gas, will generate over 3,600 megawatts of electricity to the franchise states.
Sylva maintained that such positive realisation would equally resuscitate hundreds of moribund industries and manufacturing plants that collapsed in Kano and Kaduna due to power failure.
The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, assured that the AKK pipeline project would be completed on schedule.
Kyari said the project would generate one million direct job opportunities and revamp about 300 industries in Kano alone.
While urging potential investors to embrace the business opportunities in the country, especially in agriculture, hides and skin, textile, Kyari charged governments of the affected states to find lasting solution to insecurity.
On his part, Governor Abdullahi Ganduje said “Kano is investing over N2.5bn on Dala inland port to facilitate investment opportunity in the state.
He expressed his government’s commitment to Ease of Doing Business, including provision of tax holiday for potential investors.
Get real time update about this post categories directly on your device, subscribe now.