Natural Gas Logistics, Utilization And Impact On Nigeria’s Economic Health: A Simple Empirics

Abstract

The Study Examines Natural Gas Logistics, Utilization and Impact on the Nigerian Economy. Past and Ongoing Gas Utilization efforts, Storage, Factors influencing Investment in the Sub-Sector and the Constraints of Gas Development. It adopted Ex-Post Facto Design through Secondary Means from The Central Bank of Nigeria (CBN), Nigeria National Petroleum Corporation (NNPC), Nigeria Gas Company (NGC) and Department of Petroleum Resources (DPR) Statistical Bulletins from 1981 to 2020. Econometric Regression Technique of Ordinary Least Square (OLS) was employed to investigate the Impact of Revenue from Foreign Direct Investment (FDI) on Natural Gas, and Effect of Gas Output and Revenue on Gross Domestic Product (GDP). Findings reveal that, Gas Revenue on the Economy is currently Low since the Bottlenecks in the Sector such as adequate Utilization, high Cost Outlay, Pricing and Storage are still a Challenge. It is recommended that for Commercial reasonability, an appropriate Price Structure should be put in place. Also, a robust Regulatory Environment to ensure Sound Utilization Practice. It is expected that with the recent Commercialization of the NNPC through the Petroleum Industry Act (PIA 2021), these Recommendations should be accommodated to guarantee Efficiency, Expansion and Recovery on Investment in the Sector.