Oil and gas expert Nick Agule has voiced his support for a ban on liquefied petroleum gas (LPG) exports in Nigeria, arguing that it could help lower domestic gas prices. Speaking on Arise TV on October 24, Agule explained that redirecting LPG supply to the domestic market would address the high costs of cooking gas.
“By the basic law of demand and supply, there will be more supply in the market if we’re not exporting,” Agule said, emphasising that a greater supply would “reduce prices.”
Agule noted that despite Nigeria’s significant gas reserves, a substantial portion of LPG is imported. “Part of the inflation in the cost of cooking gas or LPG… is imported inflation,” he pointed out, adding, “The same LPG gas that we flare, we import. Nigeria is truly an enigma. The same gas that we are flaring as if it has no value is the same gas we are importing.”
He highlighted the need for governmental reform to address Nigeria’s paradoxical energy practices, calling for structural changes to prevent energy waste and inefficiencies. “The president himself needs to look into these things, as they require the highest level of attention,” Agule stated.
Nigeria’s Structural Energy Imbalances
Agule called attention to the structural imbalances in Nigeria’s energy sector, referencing the recent collapse of the national power grid as an example. “The problem lies in the hands of TCN [Transmission Company of Nigeria], a government entity that is not properly funded,” he remarked. Agule argued that effective reforms must tackle key sectors like electricity, gas, and petrol, as opposed to focusing on “interest rates or unification of exchange rates.”
Addressing Gas Flaring and Investor Attraction
Agule further urged the government to enact policies that would prevent gas flaring. “The government just needs to come very firm on operators in Nigeria to say if you produce gas, you have to use it… either harness the gas or don’t produce it,” he asserted. Agule explained that flaring represents both an environmental and economic loss, especially given the vast gas reserves Nigeria possesses.
The expert also highlighted the importance of making Nigeria more attractive for investors by improving the ease of doing business. “Let Nigeria be a country where investors are welcomed,” he said, stressing that “people sitting in government offices… put stumbling blocks” in the path of potential investors.
In Agule’s view, Nigeria’s abundant natural resources should be maximised for domestic benefit. “Imagine, if you can spend money to clean the water, then spend the same to harness the potential of gas,” he concluded.