Neconde’s Ag. MD, Engr. Emenike Speaks On Consequences Of Nigeria’s Gas Debt, Dollarised Operations

Expert in Nigeria’s oil and gas industry has sounded alarm over the consequences of some policies of Government that has undermined the ongoing energy transition.

The policies according to Engr. Chichi Emenike, Acting Managing Director and Gas Asset Manager of Neconde Energy Limited, have led to huge financial burden stifling the initiative.

According to her, unpaid gas supplies, dollarised operations, and policy inconsistencies are discouraging investment in the sector.

Emenike made this remark during a panel session at the Oriental News Nigeria 2025 Conference in Lagos on Thursday.

According to her, Neconde, for instance, has gas that has been produced and supplied to the electricity generation companies (GenCos) and that has not been paid for almost two years now.

“This is a serious conundrum, whereas we have sourced funds from somewhere to produce these gas molecules from our facilities. How am I going to pay back?

Emenike further explained that Nigeria’s upstream gas production is highly dollarised, making it costlier than crude oil development and difficult to sustain without a commercially viable framework.

“Don’t forget that the gas production industry is highly dollarised, including the requisite inputs. There is no part of the operation, including the technology, that is produced locally. The bulk of it has to be imported in US$.

“The O&M, well drilling, and accessories to drill a gas well are all dollarised. So, it costs more than what it costs to drill a crude oil well. The handling of a gas well is highly sophisticated, unlike that of crude oil.

Speaking on systemic issues within the gas-to-power value chain, Engr. Emenike said, “Over 500 million standard cubic feet (scf) of gas are being transported with the NGIC pipeline.

“If you multiply this figure by one dollar, you will understand the cost. Whereas so much money went into drilling some of these wells, it costs $35,000 plus or minus, and that is outside other assumptions of fees.

Commenting on the financing and investment environment, Emenike called for a pragmatic national energy plan that begins with achievable goals, rather than lofty ambitions.

“Let us start with what is doable; I mean the low-hanging fruit. Let us stop with big numbers. We should tidy up small fields that are struggling to juggle both CAPEX and OPEX.

Industry. We need to set the rules of the game.

She emphasised the importance of investor confidence and a market-driven approach.

“Every investor wants to see a clear line of sight. Market forces should be allowed to play out. The government should not create a monopolistic environment that stifles investment. They should allow it to have that flexibility.

“None of these government officials understand how investors raise capital to finance their projects and the terms of it. Government has no business in business. They should stop the rent-seeking attitude and stop looking for short-term benefits. Quick fixes will not work.

She has therefore challenged the FG to focus inwardly and begin with achievable solutions.

According to her, “There is much more to be gained if we have a very selfish Nigerian plan that focuses on Nigerian interests alone. This can service the entire Gulf of Guinea if we are serious. Let us start with the small gas fields.

She further urged the FG to stop putting benchmarks on gas for power, adding that the market forces should be allowed to dictate the price.

Engr. Emenike charged the Nigerian government to allow flexibility in the market and encourage alliances within the value chain operators.