Energy expert urges commercial review of $27 billion African Atlantic Gas Pipeline

President Bola Tinubu has praised Minister of Works David Umahi on his 63rd birthday, calling him one of his “outstanding, hardworking ministers.” In a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu highlighted Umahi’s contributions to infrastructure development, particularly in the areas of road and bridge construction aimed at providing long-term benefits to Nigerian citizens. The president emphasized Umahi’s hands-on approach, noting that the minister frequently visits construction sites to monitor progress and ensure adherence to technical standards. Born on July 25, 1963, Umahi previously served as the governor of Ebonyi State from 2015 to 2023 and later represented Ebonyi South in the Senate during two consecutive terms. Before entering national politics, he held positions in both state and federal governments, building a reputation for administrative competence and public service. His current role as Minister of Works marks a continuation of his career dedicated to enhancing Nigeria’s physical infrastructure. Tinubu acknowledged Umahi’s “passion, dedication to duty, and deep sense of patriotism,” and urged him to maintain the pace of development aligned with the administration’s goals of improving living conditions and fostering economic growth. The president expressed confidence in Umahi’s ability to deliver on these objectives, stressing the importance of sustained effort in addressing the nation’s infrastructural challenges. The statement also included well-wishes for Umahi and his family, with prayers for continued health and vitality as he continues his public service. This gesture underscores the personal rapport between the president and the minister, reflecting mutual respect and shared commitment to national progress. Separately, energy expert Dan Kunle has called on President Tinubu to reconsider the viability of the $27 billion African Atlantic Gas Pipeline. In an open letter dated July 23, Kunle argued that the project lacks sufficient commercial justification and poses significant financial and geopolitical risks. He warned that proceeding without resolving key issues related to supply, financing, and market demand could result in a costly national asset with minimal returns. Kunle criticized the recent endorsement of the pipeline by ECOWAS member states following the signing of an Intergovernmental Agreement in Lungi, Sierra Leone. He likened the initiative to a potential “Memorandum of Misunderstanding,” highlighting the gap between political aspirations and economic realities. The project, spanning nearly 7,000 kilometers, would involve multiple West African nations with varying regulatory frameworks and fiscal policies, complicating its implementation. The expert pointed out that Nigeria possesses substantial gas reserves but struggles to convert them into usable energy for domestic consumption. He cautioned against prioritizing long-distance exports while the country grapples with energy shortages. Kunle recommended shifting focus toward utilizing gas for local industrial production, including electricity generation and manufacturing goods such as fertilizers and petrochemicals. He also suggested that Liquefied Natural Gas (LNG) might offer a more adaptable and economically sound alternative to a fixed transcontinental pipeline, allowing for flexibility in responding to changing market demands. Kunle urged the presidency to commission an independent review of the project by the Presidential Petroleum Reform and Value Optimisation Taskforce, emphasizing the need for private financing and enforceable commercial agreements before moving forward. This call for reassessment comes amid ongoing debates about Nigeria’s energy strategy, with critics arguing that the country should prioritize immediate domestic needs over large-scale export ventures. As discussions continue, the government faces mounting pressure to balance ambitious infrastructure and energy projects with practical considerations that ensure sustainable national development.