In the quest for economic development and sustainable industrial growth, Nigeria stands at a crossroad, facing numerous challenges and opportunities.
Among these is the need to address energy poverty and its attendant cost implications.
Abundant Natural Gas Reserves
Nigeria is well-endowed with abundant natural gas reserves, with an estimated 208.83 trillion cubic feet of gas, representing 33 per cent of Africa’s total gas reserves of 620TCF and is among the top ten gas-rich nations in the world.
The vast availability of natural gas is a compelling reason why it should play a central role in Nigeria’s industrial growth. It is not only a cost-effective energy source but also offers long-term sustainability for industries.
Cleaner and Cost-Efficient Energy Source
One of the main advantages of natural gas is its environmental friendliness compared to traditional dirty fossil fuels. It produces significantly lower emissions of carbon dioxide and other pollutants when burned.
In fact, the combustion of natural gas produces roughly 50-60% less carbon dioxide than coal and diesel.
As global concerns for climate change and air quality increase, adopting natural gas for multiple uses can help Nigeria meet its international commitments to reduce emissions.
Cleaner energy sources like natural gas are more attractive to both domestic and international investors and can lead to a boost in Nigeria’s industrial competitiveness.
Natural gas is cost-efficient compared to other energy sources. This affordable nature due to availability, gives it an edge and makes it more economically viable over other fossil fuels and a compelling choice for powering industrial processes.
Reliable Energy Supply
Reliability in energy supply is another crucial factor for sustained industrial growth. Nigeria’s abundant natural gas provides a consistent and reliable source of energy. It is important to note that natural gas contributes significantly to Nigeria’s energy mix.
This consistent supply is essential for factories, businesses, and infrastructure development, especially in a nation where power shortages have historically hindered growth. With the help of natural gas, Nigeria can work towards a more stable and reliable industrial environment.
Power Generation
Natural gas is the primary fuel used for electricity generation in many countries. Currently, natural gas contributes to over 80% of the nation’s electricity generation, hence demonstrating its significance.
With its undisputed efficiency in fueling electricity production, natural gas also helps industries address the energy deficit through off-grid, ring-fenced power supply solutions, enabling the elimination of downtimes, and promoting increased productivity.
Cost Benefits
It is evident that total energy cost constitutes the biggest cost centre for industries in Nigeria. By switching to natural gas, companies can save up to 400% on their energy bills. Its competitive pricing, inherent energy efficiency, and stability in cost compared to other fossil fuels, such as coal or diesel, reduce operational expenses and enhance profitability.
Additionally, the lower maintenance requirements of most natural gas equipment, along with the benefits of emissions compliance and improved process control, result in further cost savings and efficiency gains.
Industries that embrace natural gas will not only reduce their energy expenses but also maintain their competitive edge in the marketplace while contributing to environmental sustainability.
Infrastructure Development and Axxela
To fully harness the potentials of natural gas, Nigeria needs to invest in the necessary infrastructure to enable access through pipelines or other transportation means.
Axxela Limited, one of the leading natural gas distribution companies in Africa, has distinguished itself through massive infrastructural investments amounting to over $500 million over the past decade.
Its contributions to natural gas investment and promotion in Nigeria extend beyond infrastructure development. The company has played a pivotal role in shaping the nation’s energy landscape. Axxela is known for its pioneering efforts in creating innovative solutions and enabling hundreds of industrial and commercial businesses in Nigeria to switch their energy source to natural gas, thereby helping them to reduce their energy costs, and ultimately reduce their carbon footprints.
With natural gas taking centre stage as a transition fuel, this approach has not only improved the sustainability of numerous businesses but also aligns with global environmental standards.
By addressing emissions and minimising environmental impact, Axxela ensures that the environmental benefits of natural gas are fully realised in Nigeria.
With over 200 industrial companies already switched to natural gas through its various subsidiaries – Gaslink Nigeria Limited; Central Horizon Gas Company; Transit Gas Nigeria Limited; Gas Network Services Limited and over 360km of natural gas distribution pipelines already developed to deepen domestic utilisation of gas in Nigeria, Axxela is a beacon for natural gas promotion and adoption in Nigeria and African sub-region.
Conclusion
Natural gas answers Nigeria’s quest for industrial growth, and various economic analytics support this assertion. With its abundant reserves, environmental benefits, and role in power generation, natural gas is a cornerstone of the nation’s development.
By embracing natural gas as a primary energy source, Nigeria can unlock the potential for a sustainable, thriving, and competitive industrial landscape, as well as significantly reduce greenhouse gas emissions, which is vital in the global fight against climate change.
Axxela is actively invested in enabling our customers to reduce their CO2 emissions and manage their greenhouse gas emissions by switching their energy supply from diesel or Heavy Fuel Oil (HFO) to natural gas.
We have also developed an easy way to calculate the Cost Benefit Analysis of switching to natural gas, simply click the cost assessment template here.
