Financing Prospects in the Gas Industry: A Nigerian Perspective

Abstract

The objective of this paper is to investigate the financing prospects in gas industry. This paper classified gas financing into four (4) areas such as (a) associated gas (b) dry gas (c) condensated gas and (d) natural liquid gas. There are fourteen (14) job classifications in the gas industry which corporate bodies or individuals can be engaged. Variables are classified as y = gas production, x/ = gas utilization and xj = gas flared. The values of these variables were obtained from the 2004 statistical bulletin of central Bank of Nigeria (CBN) from 1983-2017. The SPSS/PC was used to subject these variables by the step wise regressional analysis. The result shows that 29.10% of gas produced was utilized while 70.90% were flared as financial waste. We tested hypotheses / by the use of coefficient of variation, we concluded that gas utilization has the highest risk investment potential. Hypothesis 2 accepted Ha2 that means v > Mean x/. While HA was accepted because skewness of x; > .v/. u e recommended a comprehensive investment policy in the gas industry.