The proposed South-East Gas Distribution Pipeline Project will reduce energy costs, boost industrialisation and create jobs across the five states of the region, President Bola Ahmed Tinubu has said.
Tinubu, who spoke at the South-East Gas Infrastructure Investment and Project Development ceremony in Enugu, said the proposed $100 million project would connect gas resources to industrial and commercial centres in Abia, Anambra, Ebonyi, Enugu and Imo states.
Represented by the Deputy Speaker of the House of Representatives, Hon. Benjamin Kalu, the president said affordable and reliable energy was critical to unlocking the region’s industrial potential and improving the competitiveness of its businesses.
He lamented that manufacturers in the South-East had for decades spent huge sums of money generating their own electricity, adding that their resilience should not be an excuse for inadequate infrastructure.
“There is a sound familiar to every manufacturer in Aba, Nnewi, Onitsha, Enugu and across the South-east. It is the sound of a generator.
“Our manufacturers should not have to spend more on generating electricity than on expanding production.
“Our young entrepreneurs should not find that the greatest obstacle to their ambition is the cost of keeping their machines running,” he said.
Kalu said the project would help transform the region’s economic landscape by providing an alternative energy source for existing industries while attracting new manufacturing investments.
He added that the proposed pipeline would support industrial clusters in Aba, Nnewi and Onitsha, encourage agro-processing in Ebonyi, attract investments to Enugu and connect Imo state’s gas resources to the wider regional economy.
“The true value of our gas is in the factories it powers, the jobs it creates and the prosperity it brings to our people,” the president said.
Tinubu described the project as an important step towards regional economic integration, adding that gas infrastructure should serve industries and markets across state boundaries rather than operate within isolated jurisdictions.
He said his administration would work with state governments, investors and relevant federal institutions to facilitate the development of critical infrastructure capable of reducing production costs, expanding trade and generating employment.
The president commended the South-East Development Commission (SEDC) for committing $3 million to the project and establishing a framework for mobilising additional investments from state governments, financial institutions and private investors.
He, however, cautioned that the ceremony marked an investment and project-development milestone, noting that financing, regulatory approvals, construction and actual gas delivery were still ahead.
“I expect the South-East Development Commission and its partners to move beyond today’s ceremony with a clear implementation plan, defined milestones and measurable results,” he said.
“The Nigerian people deserve projects that move from concept to financing, from financing to construction, and from construction to economic value.”
Speaking earlier, the Managing-Director and Chief Executive Officer of SEDC, Mark Okoye, stated that the commission had completed technical, financial and legal due diligence before committing $3 million to the project.
Okoye said the commission was targeting aggregate regional investment participation of up to $30 million, including its initial contribution, with the balance expected from interested state governments, private investors and other financial partners.
