ZIK GBEMRE SPEAKS ON WHY NIGERIAN GAS COMPANY, NGC SHOULD BE SCRAPPED  

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The Nigerian Gas Company, NGC constitutes a bottleneck that must be quickly scrapped to salvage the gas industry in Nigeria.

 

Whereas there are abundance of natural gas deposits in Nigeria to generate well over 200,000 megawatts of electricity, the bureaucratic bottlenecks created by the Nigerian Gas Company has led to the present embarrassing situation of generating barely 4,000 megawatts for over 200 million population of the country, and the 12.5 kilograms of gas selling for over twelve thousand, five hundred Naira.

 

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It is the needless activities of the Nigerian Gas Company, NGC that has created this scarcity and made the price of gas hits record levels at present.

 

The Nigerian Gas Company is nothing but a “Toll Gate” generating unnecessary gridlock. It must now be scrapped in order to ensure easy production and distribution of gas for power generation, domestic industries and cooking.

 

I align with the view by Smart Ofugara that few’adopted first class citizens’ deliberately kill the entire system, including the petroleum sector, and capitalizing on the ineptitude of governance by creating wasteful government departments and parastatals that will enable them create frivolous appointments here and there for their hangers-on.

 

As narrated by Ofugara in one of his recent commentaries, “the Nigeria’s adopted first class citizens have caused the country irreparable damage. Capitalizing on the ineptitude of governance, and using it’s weaknesses to become the ‘adopted first class citizens’ of killing competition, killing our refineries, killing industries, killing manufacturing, killing agriculture, killing our infrastructures, destroying jobs and yet contributing nothing to CREATIVITY, INNOVATION, RESEARCH OR DEVELOPMENT.”

 

Nigeria is known unfortunately for its embarrassing propensity to duplicate efforts, create unnecessary parastatals and companies whose functions are either unclear or unnecessary, and manufacture roles and duties that end up constituting clogs in the wheels of the society.

 

All these are done just to create offices for the “boys” which the system has no need for. It is just such needless duplication of duties that has brought the country to its knees, and why the recurrent expenditure in the national budget is over 85%.

 

There are thousands of Nigerians employed in government owned parastatals, feeding fat from the nation’s dwindling resources who have neither defined roles nor any reason whatsoever to be in those offices. Paradoxically, their activities even hinder, rather than enhance the smooth running of the society.

 

The Nigerian Gas Company, NGC is a needless Federal government company whose functions are detrimental to the smooth running of the Petroleum sector. It was established in 1988 as one of the eleven subsidiaries of the Nigerian National Petroleum Corporation, NNPC LTD.

 

The Non Associated Gas, NAG and Associated Gas , AG are produced 100% by the international oil companies (IOCs) and Nigerian indigenous oil companies, including the NNPC E & P LTD and ND WESTERN Ltd.

 

The so-called Nigerian Gas Company, NGC has no business in oil and gas production in Nigeria. So why don’t the international oil companies, IOCs and the Nigerian indigenous companies that produce the Non Associated Gas, NAG and Associated Gas, AG retain the mandate to sell the gas they produce without passing through the Nigerian Gas Company, NGC which is nothing but a “toll gate” that constitutes a bottleneck and barrier to gas production and development in the country?

 

The question is what exactly is the NGC needed for? Does the NGC produce gas? Does it add any value to gas? The answer to these questions is ‘NO’.

 

The Nigerian Gas Company, NGC merely exists as a “toll gate” that adds nothing to the value chain from gas drilling to processing and to utilization. Instead, it stands in the way to appropriate what is produced and decides who gets what. The Nigerian Gas Company, NGC denies the international oil companies, IOCs and indigenous oil companies who do the 100% in gas production the right to direct, manage and control the gas they produce. The Nigerian Upstream Petroleum Regulatory Commission, NUPRC is already in place to regulate the upstream sector. So the question is, what is the relevance of Nigerian Gas Company, NGC? Of course no functional roles. NGC is a redundant subsidiary of NNPC LTD.

 

It is the activities of the Nigerian Gas Company (NGC) that is responsible for the escalated price of cooking gas at present, and the inadequate supply of gas to power the power plants/stations that should generate electricity for the suffering population of Nigeria.

 

It is not only that the NGC does nothing, it also feeds fat on the nation’s resources through salaries, allowances and bonuses for its idle staff doing practically nothing. To illustrate, the NGC spent 31.88 billions on personnel salaries, welfare and other expenses in 2020 alone, and you can bet with good reasons that the amount is much higher for 2021 and 2022.

 

It is now apparent from the foregoing that the present crises in the oil & gas industry is self-inflicted. To salvage the situation, an imminent restructuring of the petroleum sector is required. This should involve the scrapping of the NGC, and its staff taken to the refineries or other ministries/departments. The NGC as it presently exists is a complete waste of resources with no relevance to the oil and gas sector. It contributes nothing to the industry or the Nigerian economy. It is rather inflicting injury on the economy.

 

Also, the Petroleum Act must be re-amended. This is the only way the country can develop its gas potentials and make gas relevant to the economy.

 

We are presently denied the benefits of what God has blessed Nigeria with, through the activities of the irrelevant Nigerian Gas Company, doing nothing other than sit and read metres, lay pipes and receive money that can better be laid by the IOCs and Nigerian indegenous operating oil companies.

 

The IOCs and indigenous oil companies must now have the mandate to produce gas and sell directly to consumers as it is done with the production of crude oil and condensate.

 

We Mobilize Others To Fight For Individual Causes As If Those Were Our Causes!

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