Wale Tinubu, the CEO of Oando, in an interview with TOGY spoke about the issues relating to natural gas infrastructure development in Nigeria, the impact of low oil prices on the market and the investment environment in the country.

While speaking on gas infrastructure he said: “Gas development is closely tied to infrastructure development – or the lack of it. Gas infrastructure is a high-cost, low-margin business. It has a high barrier of entry and requires deep technical and terrain knowledge and experience to succeed.”

“Unfortunately its development has been stunted, in part by the slow development of the market, and in part by the difficulty in accessing long-term, low-interest capital needed to undertake the massive projects that ensure delivery of gas to all parts of the country.”

He however added; “NNPC is currently driving the expansions in major pipeline construction, supported by private sector companies like Axxela. We believe the private sector is best positioned to fill the huge gaps that remain in gas infrastructure investments.”

He also said that Nigeria still had a lot of investment potential; “As long as work continues around strengthening governance, improving the business environment and also reducing the barriers to investment, the country will continue to be a hotbed for investment.”

Source: TOGY