The Senate had resolved to launch a comprehensive inquiry into the N250 billion disbursed by the Central Bank of Nigeria (CBN) to fifteen companies under the Nigeria Gas Expansion Programme (NGEP) Intervention Fund.
The resolution of the apex legislative Assembly, is contained in a notice signed by the Chairman, Senate Committee on Gas, Senator Jarigbe Jarigbe, calling on the beneficiaries to appear before the Committee with “progress reports, location of projects, and current status of projects.”
The investigation, according to the notice, which was released to journalists on Sunday evening, will commence on November 30, 2023.
The establishments involved are: Dangote Oil Refinery, Delta State Government, NIPCO Gas Ltd, NIPCO PLC, HYDE Energy Ltd, LEE Engineering and Construction Company, Transit Gas Ltd, among others.
It is pertinent to note that in 2020 the federal government through the Central Bank of Nigeria, launched the 250 billion National Gas Expansion Programme.
The federal government explained that the programme was in a bid to provide access to private sector investments in the domestic gas value chain and stimulate investments in development of infrastructure.
Government also pointed out that National Gas Expansion Programme was also aimed at optimizing the domestic gas resources for economic development.
The CBN had also noted that “with proven gas reserves of 188 trillion cubic feet (tcf) of gas, the natural gas industry presents an opportunity to diversify the economy through domestic commercial utilisation of its natural gas.
It further stated that the low level of investment in the industry had resulted in the minimal production and utilization of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as clean alternative sources of domestic energy in Nigeria.
Federal Government said further that the NGEP fund was available to finance the establishment of gas processing plants and small-scale petrochemical plants, gas cylinder manufacturing plants, Compressed Natural Gas (CNG) regasification modular systems, automatic conversion kits or components manufacturing plants, CNG primary and secondary compression stations, as well as micro distribution outlets and service centres of liquefied petroleum gas (LPG) sales.
It also said that the facility was designed to meet certain objectives, including improved access to finance for private sector investments in the domestic gas value chain and stimulate investments in the development of infrastructure to optimise domestic gas resources for It also set out to fast-track the adoption of CNG as the fuel of choice for transportation and power generation, as well as LPG as the fuel of choice for domestic cooking, transportation and captive power.
Accordingly, it would equally provide leverage for additional private sector investments in the domestic gas market, boost employment across the country and fast-track the development of gas-based industries, particularly petrochemicals (fertiliser and methanol, among others).
The Federal Government said that this was with a view to supporting large industries such as agriculture, textile and related industries.
It also hinted that the programme would service the development/enhancement of auto gas transportation systems, conversion and distribution infrastructure, enhancement of domestic cylinder production and distribution by cylinder manufacturing plants and LPG wholesale outlets, and any other mid to downstream gas value chain-related activity recommended by the Ministry of Petroleum Resources.