Government launches mega project
The acting President of the Federal Government of Nigeria, Yemi Osinbajo, recently launched the Gas Revolution Industrial Park (GRIP) project in the country’s Niger Delta region. The project is in Ogidigben in Delta State and has already been provided Tax Free Zone status by the government.
The public-private partnership project which includes a consortium of companies like South Korea’s GSE&C, China Development Bank, and Power China, among others, is valued at $20 billion.
Importantly, it is expected that 250,000 direct and indirect jobs will be created on the back of the project. The Delta State, which has been riddled with unemployment, is expected to benefit immensely from the project – a fact seconded by lawmakers Daniel Mayukwu and Emeka Elekeokwuri who represent Warri South West and Ika North East, respectively.
Why is GRIP crucial to Nigeria?
Nigeria – the most populous country of Africa – has the highest proven gas reserves on the continent. According to BP Statistical Review of World Energy 2016, at the end of 2015, Nigeria had 5.1 trillion cubic meters of proven natural gas reserves. This is equivalent to 36% of total natural gas reserves on the continent.
However, a look at its reserves-to-production (R/P) ratio, which is calculated by dividing reserves of the current year by production of the same year, is 102.1 years. This indicates that the production rate is quite low. Even in the face of steadily increasing output, this relatively low production has negative implications for power generation in Nigeria.
The GRIP industrial project will not only have a positive economic impact on the Delta State, but will also improve natural gas production in the country.
Execution is still some time away, but the government has shown its intent to see the project through successfully. Acting President Yemi Osinbajo was quoted as saying, “The importance of this project is underlined by the presidential attention it is attracting.”