Emmanuel OchayiThe Nigerian Senate gears up for a deep dive into the utilization of the over N250 billion disbursed by the Central Bank of Nigeria (CBN) under the Nigeria Gas Expansion Programme (NGEP) intervention fund.
The investigative hearing, set to commence on November 30, aims to shed light on the progress and status of projects undertaken by fifteen companies, recipients of these funds.
Join our WhatsApp ChannelIn a notice issued by Senator Jarigbe Jarigbe, Chairman of the Senate Committee on Gas, beneficiaries including prominent entities such as Dangote Oil Refinery, Delta State Government, NIPCO Gas Ltd, LEE Engineering and Construction Company, among others, have been called upon to present reports detailing project advancements and current statuses.
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“Beneficiaries are expected to provide clear progress reports, project locations, and the present status of the projects financed by the NGEP intervention fund,” Jarigbe emphasized.
The NGEP was launched in 2020 by the federal government through the CBN, intending to facilitate private sector investments in the domestic gas value chain. Its primary objectives were to optimize domestic gas resources for economic development and foster increased investment in gas-related infrastructure.
Speaking about the initiative, a representative from the federal government highlighted the program’s goals: “The NGEP fund was designated to finance various critical ventures, ranging from establishing gas processing plants, small-scale petrochemical plants, to manufacturing CNG regasification systems and enhancing LPG distribution.”
Furthermore, the initiative aimed to accelerate the adoption of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as preferred sources of energy for transportation, power generation, and domestic use, supporting the growth of gas-based industries across sectors like agriculture and textiles.
The NGEP sought to improve access to finance for private sector investments in the gas value chain, boost employment opportunities nationwide, and catalyze the development of gas-related industries, specifically petrochemicals.
Eligible activities under the NGEP intervention encompassed a wide spectrum, including the establishment of gas processing plants, manufacturing gas cylinders, creating CNG compression stations, and enhancing LPG distribution networks.
The Ministry of Petroleum Resources would recommend any other mid to downstream gas value chain-related activities suitable for support under this program.
The upcoming Senate probe seeks to ensure accountability, transparency, and the effective utilization of the funds allocated under the NGEP, prompting the summoned companies to provide detailed insights into the progress of the projects undertaken with these financial resources.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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