Stakeholders blame governance failure for poor power despite 210tr scf gas

Stakeholders blame governance failure for poor power despite 210tr scf gas

Stakeholders have blamed poor governance for the country’s inability to leverage more than 210 trillion standard cubic feet of gas reserves to power its economy.

The stakeholders, in a communiqué following the second EMOGAS International Natural Gas-Based Industry Conference and Exhibition, is not rooted in a lack of resources, but in weak governance, distorted pricing and institutional failure.

Despite commanding some of the world’s largest gas reserves, the continent continues to export molecules while living in darkness.

Stakeholders at the conference noted that Africa holds about nine per cent of global gas reserves, yet gas accounts for barely five per cent of its energy mix.

For industry leaders and policymakers gathered at the conference in Abuja, the imbalance reflects decades of policy choices that favour exports over domestic utilisation, short-term revenue inflows over long-term development and regulatory discretion over market discipline.

Regulatory uncertainty further compounds the problem as it points to slow approval processes and inconsistent

Admitting that capital is mobile while patience is not, they stressed that energy projects require decades of stability and political assurances.

Calls were made on African governments, particularly Nigeria, to fully implement existing laws, such as the Petroleum Industry Act (PIA), rather than continually announcing new reforms.

They also lamented what many participants described as global hypocrisy, stressing that while advanced economies continue to rely heavily on gas to stabilise their grids, African gas projects face growing resistance from international financiers under the environment, sustainability and governance (ESG) frameworks.

Development finance institutions, once central to Africa’s energy build-out, are retreating from hydrocarbons, even where gas should replace dirtier fuels like diesel or biomass.

The speakers argued that this has left Africa trapped between moral pressure and material reality.

Several stakeholders called for a more pragmatic global approach that recognises gas as a development fuel for Africa, not climate indulgence.

While the Africa Energy Bank (AEB) progressed on Monday with its headquarters in Abuja, the stakeholders noted that Nigeria’s pledge of $100 million in initial capital remained a welcome signal that African governments may finally be willing to underwrite their own energy future.

According to them, the AEB is intended to fill gaps left by global lenders, providing guarantees, facilitating equipment procurement and supporting indigenous companies often locked out of international credit markets.

They emphasised that the real value of the AEB would lie in its ability to de-risk projects and aggregate cross-border demand. By pooling proceduremen for compressors turbines and processing modules, African countries could lower costs and accelerate project delivery. More importantly, such coordination could stimulate local manufacturing and reduce chronic dependence on imports.

Liquefied Natural Gas (LNG) discussions at the conference also reinforced the same governance theme. While projects in Nigeria, Mozambique and Senegal–Mauritania show what is possible, stakeholders cautioned that LNG success stories remain exceptions rather than the rule.

Financing gaps, security risks and weak inter-agency coordination continue to delay or derail projects across the continent.

They also stressed that LNG infrastructure must serve domestic economies, not just export terminals.

They challenged African governments to rethink how they treat refinery and associated gases. Rather than flaring or undervaluing them, stakeholders urged policymakers to view these gases as strategic assets that can support clean cooking, power generation , and industrial feedstocks. Doing so, they argued, would reduce imports, improve public health and strengthen energy security.