Shale Gas Development: Their Gain, Our Pain and the Cost

Lanre Aladeitan, Chisom Nwosu


With an estimated reserve of 187 trillion cubic feet of gas and a policy thrust of domestic gas utilisation and participation as a key player in the international gas market, Nigeria in the last two and half decades has invested significantly in the development of its gas sector thus positioning itself as a potential gas producing country. To this effect, a lot of capital resources were committed to building the necessary infrastructural backbone for the country’s gas development. In some cases, these projects are financed by loans with strict repayment terms contingent on the off-take of gas production. It is against this background, that the development of gas from unconventional sources such as the shale basin becomes a subject of concern and the focus of this paper in order to assess its economic implication and cost to erstwhile importing countries and hitherto exporting countries.

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