The Association of National Accountants of Nigeria (ANAN) has advised the Federal Government to increase investments in liquefied natural gas (LNG) production to help address Nigeria’s declining revenue.
Speaking at a recent 2024 budget workshop, ANAN President James Neminebor stated that earnings from gas could provide much-needed income for Nigeria amidst the current fiscal challenges.
“We need more than three NLNG [Nigeria LNG] companies in Nigeria because gas reserves are far more abundant than crude oil reserves in this country,” Neminebor said. “The Federal Government should invest heavily in gas and gain a stronger foothold to expand Nigeria’s revenue base.”
Neminebor noted rising global demand for gas, and Nigeria’s vast reserves—208.83 trillion cubic feet, the largest in Africa—make ramping up LNG production timely and necessary.
The ANAN President’s call was echoed by Samuel Agbeluyi, President of the Chartered Institute of Taxation of Nigeria (CITN), who organized the budget workshop alongside ANAN.
“We can’t keep borrowing money. We urgently need to generate enough revenue to finance the 2024 budget and reduce dependence on loans,” Agbeluyi said. “Increasing gas production, as suggested by my ANAN counterpart, would boost revenues when implemented.”
Nigeria, which has Africa’s largest gas reserves, meets only 40% of domestic gas demand locally. Experts say investing more in LNG and monetizing gas reserves could earn billions in export revenue.
With economists warning Nigeria risks debt distress in 2023, accounting groups advise the government to heed their call to ramp up gas production significantly. Doing so could net much-needed income while meeting surging global LNG demand.