Managing Director of Niger Delta Power Holding Company (NDPHC) Limited, Chiedu Ugbo, has raised concerns over gas price in Nigeria, insisting there is need for re-evaluation.
   
Despite a gas reserve of 209 trillion standard cubic feet, Nigeria’s power plants are faced with shortage. While the commodity was previously sold at N440/$, floating of the naira has almost doubled exchange rate at the official window, while the price has increased threefold at the parallel market.
   
Over 80 per cent of Nigeria’s power plants are gas fired, a development which could make tariff adjustment or subsidies in the sector soar. In a statement, Ugbo said high cost of gas in Nigeria is worrisome, noting that investing in technology for extracting gas more cost-effectively could be a solution.
   
He said: “May be, there has to be investment in technology that can bring out gas cheaper.”

A big question is: why is gas denominated in United States dollars? Before unification of exchange rates, we were buying gas at an official rate of around N440/$. But now that it is floated, are you going to pass the cost to consumers?”
   
According to him, renewables may be the future of energy. But as of now, Nigeria needs natural gas to power heavy industries. He said some industries, like those in the steel sector, cannot transit immediately to solar energy because they still need natural gas.