The state of domestic gas supply in Nigeria can cause you to doubt whether we have the 9th largest global gas reserves. In fact, Nigeria accounts for nearly 3% of all known gas reserves in the world.
Key Takeaways
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Nigeria’s domestic gas supply hasn’t been optimal despite having 3% of global gas reserves and the 9th largest natural gas reserves worldwide.
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The gas value chain suffers from poor payment and pricing issues in the downstream segment, which has reduced the incentives for upstream gas companies to prioritise supply.
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The solution to the payment problem is guarantee-backed payment contracts while pricing in the domestic market has to be high enough to create incentives for suppliers to produce and low enough to protect consumers.
