Lagos: Mrs Chichi Emenike of Neconde Energy Ltd. has raised concerns over severe financial issues threatening Nigeria’s energy transition and deterring much-needed investment in the gas sector.
She warned that unpaid gas supplies, dollarised operations, and inconsistent government policies are discouraging vital private sector participation in the energy value chain.
Emenike made these remarks on Thursday while speaking during a panel session at the 2025 Oriental News Nigeria Conference in Lagos.
She revealed Neconde had supplied gas to electricity generation companies for nearly two years without receiving any payment in return.
“This is a major dilemma. We fund the production of these gas molecules, yet cannot recoup costs because the buyers are not paying,” she lamented.
She added that upstream gas production in Nigeria remains dollarised, making operations more expensive and less sustainable without proper commercial frameworks.
“The gas value chain depends on imported technology and services priced in US dollars, with no local alternatives currently available.
“Drilling, well services, and maintenance are all dollar-based. This makes gas production more complex and costly than developing crude oil,” she said.
Emenike drew attention to over 500 million standard cubic feet of gas transported daily via the NGIC pipeline.
“At just one dollar per unit, the volume amounts to a substantial financial commitment,” she explained.
She noted that drilling a single gas well costs upwards of $35,000, excluding additional charges and regulatory fees.
To boost investor interest, Emenike urged the government to adopt realistic, incremental energy goals, rather than overly ambitious transition targets.
“We must begin with low-hanging fruit—small gas fields struggling with CAPEX and OPEX — to support national growth,” she advised.
She called for clarity on Nigeria’s proper stance on the energy transition and a feasible, long-term funding strategy.
“Where is the money coming from? Investors in gas face deep uncertainty about financing projects from start to finish.
“Without clear direction, investors may shift funds to more stable destinations like Mozambique,” she warned.
Emenike also raised concerns about Nigeria’s unstable energy policies and their effects on investment prospects.
In gas economics, all investments must be commercially viable from the start. Nigeria’s policies erode confidence and discourage investors,” she stated.
She called for urgent regulatory reforms and an end to exploitative practices by government agencies.
“We must stop rent-seeking by regulators. Excessive penalties and unclear rules are strangling investor confidence,” she said.
Emenike encouraged industry-wide collaboration to share infrastructure and unlock stranded gas assets nationwide.
“Shared resources and clearly defined engagement rules can deliver better outcomes for everyone,” she said.
She also emphasised that market-driven strategies, rather than monopolies, should guide gas development.
“Investors want clarity and free-market dynamics, not government-imposed restrictions that hurt growth,” she said.
She challenged the Federal Government to focus on internal development priorities and realistic, nationally driven plans.
“Nigeria can lead the Gulf of Guinea with a self-focused gas strategy starting from smaller fields,” she said.
According to her, gas pricing should be determined by market forces rather than arbitrary benchmarks set by the government.
She warned against short-term thinking and called for improved cooperation among stakeholders.
“Officials must understand investor challenges. Stop chasing quick fixes and focus on long-term partnerships,” she said.
