Apex African Gas commissions plant, boosts production capacity in Nigeria

Apex African Gas Nigeria Limited has significantly boosted its industrial gas production with the commissioning of a new 70-tonnes-per-day Air Separation Unit plant in Lagos. This expansion raises the company's combined production capacity to 110 tonnes per day, establishing it as one of Nigeria's largest domestic industrial gas producers.

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This plant does not just produce oxygen. We also produce nitrogen and argon, which are used in industries. Oxygen, we can change the configuration to produce more oxygen if we want or more nitrogen.

The N10bn investment is set to enhance the supply of essential industrial and medical gases, including oxygen, nitrogen, and argon, to critical sectors such as healthcare, construction, manufacturing, oil and gas, and food processing. Company officials emphasized that this local production will reduce Nigeria's dependence on imported gases, thereby saving foreign exchange costs.

Najimu Adeniji, Chairman of Apex African Gas, stated that the plant's configuration can be adjusted to prioritize oxygen or nitrogen production based on demand. He noted the significant role nitrogen plays for oil service industries in Port Harcourt, contributing substantially to the company's revenue.

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Our main customers for nitrogen are in the oil service industries in Port Harcourt and the environment. They represent also a significant part of our revenue. These are gases that would have been imported if we are not producing locally. So it saves us the foreign exchange costs that we are able to produce here.

However, Adeniji identified unreliable power supply as a major obstacle to production costs. He appealed to the government for cheaper electricity to make oxygen more affordable for the general public. General Manager Charles Allam echoed these concerns, mentioning ongoing efforts with the government, particularly the Presidential Initiative for Unlocking the Healthcare Value Chain, to address power challenges.

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If we can get a power supply from the national grid, the cost will be significantly cheaper. So what we would like is for the government to provide for us, for the benefit of the general populace, cheaper power so that the cost of oxygen to the general public will be much cheaper than it is.

Despite operational hurdles, Allam affirmed the company's commitment to supporting hospitals with oxygen, even providing it free to some facilities. He stressed that the new plant, designed to serve all Nigerians across various economic sectors, represents a significant contribution to the nation's industrial development and job creation, demonstrating strong investor confidence.

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While the major concern now is the power, we are working closely with the government, especially with the Presidential Initiative for Unlocking the Healthcare Value Chain, to see how we can save on power. But for now, we are trying our best.