Lawmakers reaffirm commitment to strengthening host communities’ laws
Yunus Yusuf reporting from Berlin in Germany
Nigerian lawmakers have reiterated their commitment to strengthening policies aimed at benefiting host communities, particularly in the oil and gas sectors.
They made the pledge during an interview with the Business Intelligence (TBI Africa) at the ongoing 2024 World LNG Summit and Awards in Berlin, Germany, on Wednesday.
Mr Dumnam Dekor, Chairman of the House Committee on Host Communities, representing Khana/Gokama Federal Constituency in Rivers State, said that a comprehensive policy review would better support host communities.
“There is an urgent need to revisit certain policies to ensure that they truly benefit the people, particularly those living in areas where critical infrastructure, such as LNG facilities, are located.
“The experiences shared here at the summit reinforce our resolve to amend laws to better align with global trends,” he said.
He also commended the summit’s organisers for the valuable insights and commended the role of Nigeria LNG (NLNG) in the country’s development.
“NLNG stands out as a leading company in Nigeria, not just for its business success but also for its efforts in reducing gas flaring, which is in line with the global shift away from hydrocarbons,” Dekor added.
Mr Hart Godwin, a lawmaker representing Degema/Bonny Federal Constituency in Rivers State, also said that the increasing global demands for LNG as nations work toward achieving net-zero emissions by 2050.
“The world is rushing to extract LNG for energy, and those of us with abundant reserves must act swiftly.
“If we do not keep up with the global pace, we risk being left behind as more countries join the LNG race,”Godwin stated.
He added that Nigeria LNG was already expanding its capacity with the construction of its seventh train and almost completed would increase capacity by 30 million metric tons per annum.
However, Godwin acknowledged that in spite this progress, Nigeria’s LNG production was still not at full capacity, with current output at only 50 per cent of installed capacity.
He called for increased investment in upstream energy projects, to tap into the country’s vast natural gas reserves, estimated at 203 trillion cubic feet.
“We must focus on creating an environment that attracts investment, particularly in deep-water gas production.
“The regulatory landscape must be conducive to competition, and addressing security challenges will be crucial to reducing production costs.” Godwin said.
Godwin also lauded President Bola Tinubu for his recent executive order on oil and gas reforms, which includes tax incentives such as a 30 per cent gas credit for production.
These incentives, he said, would help make Nigeria’s LNG more competitive on the global market.
“The current security challenges and tax burdens affect our ability to be competitive. But with the right policies and incentives, Nigeria can position itself as a leading LNG exporter,” he said.
The 2024 World LNG Summit, with the theme “Achieving the Balance Between Energy Security and Decarbonisation,” brought together over 750 attendees, including 200 speakers from 500 companies across the energy value chain.
The summit highlighted the critical role LNG plays in meeting the world’s energy needs while addressing climate change.
