Gas operators demand use of $ 32 billion pension fund to boost investment – Blueprint Newspapers Limited
Operators in the mid-level oil industry have advocated for the deployment of Nigeria’s $ 32 billion pension fund to execute critical infrastructure projects in the sector.
They advised that the National Pensions Commission (PENCOM) should make the money available to natural gas investors as priority funding for critical gas infrastructure.
Panelists from recent Nigerian Gas Association (NGA) multilogues, who provided advice, explained that development was needed to spur economic diversification and sustained industrialization in the country.
They also advised the Central Bank of Nigeria (CBN) and other development banks to prioritize the gas industry, backed by concessional interest rates and guarantees for dollar-denominated transactions, to to ensure the confidence of lenders in gas projects.
A statement released at the end of the conference and signed by association president Ed Ubong cited the panelist as agreeing that a cost-reflective pricing mechanism, favorable tax regime, ease repatriation of dividends / capital, a stable exchange rate and a national industrial policy stability are essential conditions to stimulate equity and debt financing in the local gas market.
They revealed during the sessions that the Bank of Industry (BOI) has a $ 500 billion financing agreement with the Bank of China (BOC) to finance the import of equipment for flaring gas capture, which forces potential borrowers to advance about 25% of their financing. needs and import their equipments from China.
They added that similar deals with the US Exim Bank are also available for players who want to import their flare capture gear from the United States.
They stressed the need for Nigeria to strengthen the fiscal and operational policies necessary to attract the right investments in order to achieve the goals and aspirations outlined in the country’s gas programs.
They advised the government to urgently resolve inherited debts, payment guarantees and other business hurdles, including electricity supply bottlenecks in the gas-to-electricity program.
Panelists called for the adjustment of royalties on gas supplied and consumed in the domestic environment to encourage more supplies that catalyze greater development of the overall national economy.