Industries along the pipeline between Lagos and Ogun State are currently experiencing production setbacks because most of them lack the necessary gas pressure to conduct profitable operations.
According to information obtained by The Guardian, industries are already thinking about taking austerity measures to prepare for the demands of alternative energy sources. To save costs and maintain business continuity, some employers plan to let go of some of their employees, while others aim to reduce compensation.
Some of the businesses that complained to The Guardian said that the gas supply may have been switched to a sizable facility that was just inaugurated in Lagos.
According to information obtained by The Guardian, industries are already thinking about taking austerity measures to prepare for the demands of alternative energy sources. To save costs and maintain business continuity, some employers plan to let go of some of their employees, while others aim to reduce compensation.
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Some of the businesses that complained to The Guardian said that the gas supply may have been switched to a sizable facility that was just inaugurated in Lagos.
The Guardian learned that the gas-marketing companies are also suffering from a lack of supply. Axxela Limited, NIPCO Plc, Shell Gas, Greenville Oil, and Gas Company Limited, Power gas Limited, and Green Fuels Limited are just a few of the companies on the list.
The pressure in our pipeline has been too low to conduct any commercial activity for the past six months, according to a senior source at one of the marketing businesses who asked to remain anonymous. In order to help our industries, we need the government to look into this issue and ensure that the gas supply is improved.
Nigeria shouldn't fall behind the new global agenda for gas, which is gas. The federal government's "Decade of Gas" goal is in jeopardy given the circumstances we are in right now. If we are to complete that mission, we must begin to see results immediately rather than going backwardards, according to the source.
There are approximately 3824 industries in Ogun state, according to the state government, which have invested in excess of $200 million. Lagos State, which is home to more than 2,000 manufacturing businesses, serves as the country's economic hub. Many of these businesses that depend on gas to run are currently in a precarious situation as a result of the sharp decrease in gas supply pressure.
Another source said his company has laid over 70 kilometres of the pipeline but the current situation is a threat to that investment.
“It is making the industries bleed. They are very apprehensive because they cannot afford to switch to diesel, which is sold for N733 per litre,” he stated.
The Guardian gathered that gas supply through the pipelines cost the industries about N118 per standard cubic meter (SCM), while gas through the cascade filling system costs about N180 per SCM. This makes it unpalatable for the industries to willingly switch to cascade gas or diesel as a source of energy, due to the cost implications.
The Nigerian Gas and Marketing Company (NGMC), the gas-marketing subsidiary of NNPC, is charged with the duty of marketing and distributing of natural gas to major industrial users and utility companies in Nigeria and the West Africa sub-region.
Recent data from MAN showed that expenditure on alternative energy sources by members amounted to N117.38 billion in 2017; N93.11 billion in 2018; N61.38 billion in 2019; N81.91 billion in 2020, and N71.22 billion in 2021.
