Over the next 23 years, nigeria s population is expected to increase from its current estimate of 190 million people to almost 330 million, representing a more than 70% increase. Petroleum pipelines, spillages and the environment of the. An infrastructure action plan for nigeria african development bank. Opportunity spending optimizations for ppps d africas annual infrastructure needs are estimated at usd 93 billion, i. The development of nigeria s infrastructure and its positive impact on industrialisation, economic empowerment, balance of payments and strength of the naira cannot be overemphasized. Today, nigeria has 12,522mw of installed capacity, but due to maintenance, gas, water and transmission constraints, an average of only 3,879mw of capacity is operational january to 15 august, 2015. Nigerias gas pipeline network both domestically and beyond the borders have also been.
The national gas policy, 2017 templars nigerian law. Following nigeria s gas reserves currently estimated at 182 tcf trillion cubic feet with a projected growth rate of over 70% by 2025, the nations gas sector has proven to have the potential of. Nigeria also has the largest natural gas reserves in africa, but it presently has limited infrastructure in place to take advantage of this massive resource. There is no doubt that the present power crisis afflicting nigeria will persist unless the government diversifies the energy. Natural gas emerged in nigeria as a key energy resource during exploration for crude oil. The recent initiative of the nigerian petroleum ministry is the short and medium term priorities to grow the gas. Reserves of natural gas in nigeria are estimated to be 124 trillion 3. Underminding it infrastructure is underminding the growth and development of nigerian economy. The intervention by the african development bank, afdb offering to. In nigeria under investment in infrastructural development could be a bane to her vision of becoming a top 20 economy by the year 2020. A mutual correlation exists between infrastructural development and economic growth in nigeria. Pdf an evaluation of the adequacy of nigerias gas policies to.
Pdf chinas aid and oilforinfrastructure in nigeria. Infrastructure advisory facility ppiaf, and its publication has been possible thanks to. These forms of infrastructure are the most fundamental, and they have clear and empirically established links. Lng import capacity by region and developmental status, 2019 million tonnes per annum. Nigerias oil production is hampered by instability and supply disruptions, while its natural gas sector is restricted by the lack of infrastructure to commercialize natural gas that is currently flared burned off.
However, the results emanating from these studies have been inconclusive. This section will consider gas imports, the development of domestic production, and developments in the electricity generation sector which provides the demand for gas. Insights from new company disclosures analyzing nigeria s oil and gas sector ptg reports provide citizens with unprecedented levels of relevant and timely projectlevel payment data that can be used to inform public debate on the management of nigeria s natural resources. Large commodity finds, like oil and gas in east and southeast africa, as well as the huge demand. The new gas boom global energ monitor report june 2019 6 figure 5. The imf expects nigeria to be one of the worlds fastestgrowing economies over the 201115 period, which would help speed up the governments vision 20. As a result of various projects established, total gas utilized in the country increased from about 573 million.
Although it has long been recognized that financing gaps in areas such as for smaller enterprises and for infrastructure programs have persisted, since the 1980s the international community has been reluctant to sponsor the establishment of new development banks. The bank focuses on funding commercially viable projects that have significant developmental impact. The study has shown that infrastructure is an intermediate goods and service for the real sector and a finished goods and service for consumers. Nigerias gas as a buffer against the uncertainties regarding russias gas imports and wants to lay a gas pipeline through the sahara to algeria. Provided further that where gas consumers have collected the said cess at the rates under the gas. Different development concepts and solutions for the effective exploitation and utilization of this abundant natural gas reserve of which some of this gas reserves are termed stranded. Even with sustained high oil prices, it will take time to recover. With clear insights into the natural gas infrastructural development in nigeria, it is. Pipelines are part of the core infrastructure of oil and gas production. In addition to oil, nigeria holds the largest natural gas reserves in africa but has limited infrastructure in place to develop the sector.
Actual investments in infrastructure total usd 45 billion annually, with more than half funded by the public sector. The nigerian services sector has shown impressive gains. In that light, api contracted icf to undertake a study that investigates the amount of oil and gas infrastructure development possible in the u. Project financing international trade administration. The discovery was made by shellbp, at the time the sole concessionaire. Without drastic improvements in nigeria s basic physical infrastructure. Without drastic improvements in nigeria s basic physical infrastructure, this growth will compound the existing deficit. Oil, energy poverty and resource dependence in west africa olade. Exploit the nigerian gas reserve potential for accelerated economic development in support of the 10% gdp growth aspiration concurrent focus on domestic and export market develop an integrated infrastructure strategy that will support domestic, regional and export lng markets the adoption of an infrastructure investment blue.
The imf expects nigeria to be one of the worlds fastestgrowing economies over the 201115 period, which would help speed up. The imf projects that nigerias oil and natural gas exports earned. The project was designed by mourad belguedj, lead energy. We are geared to assisting both public institutions and private sector companies involved in the delivery of infrastructure services by providing specially designed development loans, which are price competitive and have medium to long term tenors. Nigeria liquefied natural gas company, bonny island, nigeria. Improved infrastructure is a precondition for accelerated development of the domestic private sector and is a key requirement for the. From the result, it is clear that infrastructure is an integral part of nigeria economic growth. South africa most common gas infrastructure to be constructed over the forecast period. Locations of the proposed major pipeline projects 79.
Compared to many african peers, nigeria has relatively advanced power, road, rail, and information and communications technology ict networks that cover extensive areas of the nations territory. Nigeria has an estimated 176 trillion cubic feet of proven natural gas reserves, giving the country one of the top ten natural gas endowments in the world and the largest endowment in africa. Nigeria s domestic gas sector is struggling to capitalise fully on the potential of its sizeable gas reserves even though some bigticket projects are emerging in the country. Small and medium entreprises development agency of nigeria smm sustainable materials maintenance. Infrastructural development and economic growth in nigeria.
Gas pricing policy gas supply obligation regulation gas infrastructure blueprint the objective of this pricing policy as stated by the government is to create structures and a transparent framework. He has wideranging experience in the upstream oil and gas industry, including liquefied natural gas lng. Aging infrastructure and poor maintenance have also resulted in oil spills. The intersection of planned railway projects and regional security dynamics has implications. Natural gas that is associated with oil production is mostly flared but the development of regional pipelines, the expansion of liquefied natural gas.
Global fossil infrastructure tracker, april 2019 figure 6. Today, 60% to 70% of the nigerian population does not have access to electricity. There have been several studies that have investigated the relationship that exist between infrastructure development and economic growth. Nigeria is currently the largest oil producer in africa and was the worlds fourthlargest exporter of lng in 2015. Africas economic growth and development are intrinsically linked to infrastructure development, but it is the pushpull relationship with commodities that has become the driving force for infrastructure development in the region. Dec 03, 2017 similarly, within chinaafrica relations, nigeria established diplomatic relations with china in 2006 for a concessional oilfor infrastructure plan to fill the development aperture. Taken togethei the services associated with the use of infrastructure measured in terms of value added account for roughly 7 to 11 percent of gdp table 1.
Infrastructure development and economic growth nexus in. Insights from new company disclosures analyzing nigerias oil and gas sector ptg reports provide citizens with unprecedented levels of relevant and timely projectlevel payment data that can be used to inform public debate on the management of nigerias natural resources. Nigeria energy data, statistics and analysis oil, gas. Nnpc nigeria national petroleum corporation niomr nigeria institute for oceanography and marine research nema national emergency management agency neiti nigeria extractive industries transparency initiative nshdp national strategic health development plan. Economics and profitability of new and existing industrial gas. The development of natural gas started in 1963 with the sale of gas to industries around the gas. In countries with severe infrastructure deficits, the economic return from infrastructure investment is even more favorable. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. As part of the initiative, ustda is announcing a call for gasrelated project proposals for project preparation grants. Many gas based projects are being undertaken in line with governments aspirations in the sector. Pillar i is proposed, not least, because of the valuable lessons learnt from the afdbs operations in nigeria.
Research highlights nigeria s gas sector has proven to have the potential of been a key player in the emergent global natural gas market. Railway development and implications for security and development summary chinese firms and finance play a prominent role in nigerias infrastructure development, notably in the construction of several railway lines across the country. All of this has profound effects on nigerian gas exports and on the availability of gas for domestic consumption. World gas conference technical paper ukpohor, excel1 t. Nigerian gas master plan as part of nigeria s resolve to become a major international player in the international gas market as well as to lay a solid framework gas infrastructure expansion within the domestic market, the nigerian gas master plan was approved on february 2008.
Pdf there has been persistent effort by the government and the operating oil companies to develop gas infrastructure in nigeria. Several decades after the discovery of gas, the legal landscape is still. In the transport sector, nigeria s road networks are in poor condition from lack of maintenance, and the country has a poor record on air transport safety. Infrastructure consultancy firm greenhill technical servives ltd where professional consultancy is provided in the area of infrastructure development through publicprivate partnerships.
Rural infrastructure development scheme redd reducing emissions from deforestation and forest degradation. Although nigeria has been described as a gas province with proven reserves of 188 trillion cubic feettcf. The changing role of natural gas in nigeria econstor. The key environmental issues in the niger delta of nigeria relate to its petroleum industry. Gas infrastructure development in subsaharan africa. A price recovery could spark renewed interest in exploration, but the past three lacklustre years have had a damaging impact on the continents oil and gas industry. Nigeria strategic gas plan esm279 71 world bank documents. Lng export capacity by region and developmental status, 2019 million tonnes per annum source. Oil and gas field machinery international trade administration. History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Infrastructure development and economic growth nexus in nigeria. Nigeria has made important strides toward improving much of its infrastructure. The economics of natural gas development and utilization are driven by the high cost of gas productiontransport facilities, and the need for economies of scale.
Nigeria overview international development, poverty. Despite her economic growth over the years, this has not translated to economic development due to lack of infrastructure, high poverty rate, unemployment etc. The country is estimated to have 250 ethnic groups, the. Mar 28, 2016 infrastructure development in nigeria. Nigeria s gas nigerian policies fix domestic gas prices at. Although nigeria has been described as a gas province with proven reserves of 188 trillion cubic feettcf of gas and an enviable position as the 9 th largest gas reserves holder in the world, minimal efforts have been made by the federal government to give priority consideration to the exploitation of gas and the development of critical gas infrastructure.
However the lack of a gas infrastructure, means that about 75% of associated gas is flared and only 12% reinjected. Access to clean modern energy services is an enormous challenge facing the african continent because energy is fundamental for socioeconomic development and poverty eradication. While nigeria has made some progress in socioeconomic terms in recent years, its human capital development remains weak due to underinvestment and the country ranked 152 of 157 countries in the world bank s 2018 human capital index. Moreover, the available data is of reasonable quality considering the existing constraints. Nigeria is ranked 3rd of 140 countries in terms of infrastructure in the world economic forums global competitiveness report 201516 and 169th out of 183 economies in the world banks 2016 ease of doing business index. With the approval of the gas pricing regime and the publication of the infrastructure blue print, this is an auspicious time for a prudent investor to make its foray into the development of gas delivery infrastructure in nigeria. They are necessary for the transportation, storage and marketing of natural gas, crude oil, and refined. The collapse of the oil price beginning in 2014 certainly didnt help, with capex down globally and especially in africa. As defined here, infrastructure covers a complex of distinct sectors that, by any measure, represent a large share of an economy. His work background covers asset management, business turnarounds, business development and functional excellence. First, while nigeria and angola have received ample attention. Jon has a masters degree in fuels and energy engineering m.
Pdf electricity generation and the present challenges in. Gas pipeline backbone with extensions to major population areas. Nigeria to algeria pipeline in relation to other european supply81. A key opportunity in 2018 infrastructure landscape need to be in the frontburner as the country marks its 58th independence. Dominant resource infrastructure control highly diversified downstream interest but trend is towards lng as core downstream convergence across all of integrated suppliers in strategic focus and delivery approach i. Nigeria s oil production is hampered by instability and supply disruptions, while its natural gas sector is restricted by the lack of infrastructure to commercialize natural gas that is. Partnering for the development of gas supply infrastructure. Nigeria, natural gas, domestic energy development, government policy. Subsaharan gas infrastructure opportunity over the next 20 years. Deploying a range of tools, such as reverse trade missions, feasibility studies, training, technical assistance, and the global procurement initiative.