The Federal Government has dismissed Dangote Group’s assertion that government policies led to the abandonment of its 1,200km subsea gas pipeline project.
This is as the Vice President of Dangote Group, Mr. Edwin Devakumar, during a space hosted on X by Nairametrics had explained how government policies made the company jettison plans to build 1,200km of subsea gas pipeline.
According to the Minister of State Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo, the decision to scrap the project was a business choice made by Dangote Group long before President Bola Ahmed Tinubu’s administration took office.
Ekpo emphasized government’s commitment to fostering an environment conducive to investment in the gas value chain, citing policies such as the Gas Pricing and Domestic Demand Regulations (2023), the Natural Gas Pipeline Tariff Regulations (2023), and the Petroleum Industry Act (2021).
According to him, these policies and law aim to encourage private sector investments in domestic gas development.
The Minister emphasised that any private entity interested in investing in the gas midstream and downstream sectors was free to do so, with government incentives available to encourage investments that contribute to national economic growth and development.
He said, “The Federal Government, under President Tinubu, is committed to creating an environment that encourages investors who are willing to invest in projects in the gas value chain.
“As a matter of fact, the Federal Government has taken deliberate steps over the years to encourage and stimulate investment in the Gas Sector by approving various policies, such as the Gas Pricing & Domestic Demand Regulations (2023), the Natural Gas Pipeline Tariff Regulations (2023), the Nigerian Gas Transportation Network Code, the National Nigerian Gas Masterplan, the National Gas Policy (2017) and the PIA 2021.
“The PIA established the Midstream and Downstream Gas Infrastructure Fund, MDGIF, to support more private sector investment in gas infrastructure development.
“Contrary to the view expressed by the VP of Dangote Group, there is no provision in the PIA, or its predecessor policies and or legislation, that discourages private sector investment in gas infrastructure.
“The PIA offers significant incentives for private entities to invest in the Gas Midstream and Downstream sectors. The Federal Government encourages private investment in gas infrastructure development, and several projects have been commissioned under President Tinubu’s administration.
“Notable examples of the positive impact of the FGN’s concerted effort to stimulate private sector investment in the Gas value chain, include resolution of gas supply issues to major projects like the Geometric Power Aba Limited Power Plant and the Brass Fertilizer and Petrochemical Company Limited demonstrates its support for local investors, with groundbreaking novel approaches to resolving issues.”
