Gas to Power

Nigeria has been described as a gas basin with some oil in it. With proven gas reserves in excess of 176 trillion cubic feet, Nigeria ranks among the first 10 countries worldwide in terms of gas deposits. Since commencement of commercial oil production in 1956, the Nigerian economy has relied heavily on oil as its mainstay, currently accounting for about 95% of foreign exchange earnings, 65% of budgetary revenues and about 20% of GDP. Most of Nigeria's oil is produced with associated gas, which until recently was flared to create room for oil production. As Nigeria strives to commercialize its gas resources through new LNG projects, one key area of need is power generation. Nigeria's total power generation capacity hovers between 2,600MW and 3,400MW for its estimated over 160 million population. This has proved grossly inadequate for its developmental needs, as power outages are frequent, and the energy cost component of businesses tend to be high. Recent reform efforts form the crux of this book, which provides rare insights into Nigeria's emerging power sector, its challenges and prospects. A must read for academics, students, investors and other stakeholders in the sector.