Emmanuel Addeh in Abuja
The Nigeria Extractive Industry Transparency Initiative (NEITI) has urged the federal government to ensure that the current push for global energy transition is driven by the national interest.
The initiative, therefore called for a just, fair and equitable energy transition that prioritises the country’s needs in response to the transition process.
Speaking at a national dialogue on energy convener by NEITI in collaboration with the Africa Climate Foundation, BudgiT, and the Natural Resources Governance Institute (NRGI), Executive Secretary of the organisation, Dr Ogbonnaya Orji stated that Nigeria must identify the opportunities in its untapped oil, gas and mining resources.
“NEITI believes that Nigeria’s energy transition journey must be driven and strictly guided by credible information and data on the country’s energy security and most importantly, our strategic national interest.
“Nigeria must not rush into a hasty energy transition without a thorough analysis of its comparative advantage and implications on our resources, economy, jobs and livelihoods of her citizens,” he argued.
Orji stated there must be clarity on the risks it poses to Nigeria, strategy to manage the risks and plans to maximise the opportunities, including the diversification of the economy, energy security and its attendant technology needs.
The NEITI boss stated that as an agency with a mandate to promote transparency and accountability in the oil, gas and mining sectors, and a multi-stakeholder platform for dialogue on natural resources governance, NEITI has roles to play in shaping the public debates and government policy on energy transition.
“As the world transits from the use of fossil fuels to cleaner and sustainable energy, transparency and accountability must be mainstreamed into the process, including the reporting of emissions, disclosure of climate risks and overall governance of the energy industry to avoid the pitfalls of the past and present energy experiences,” he advised.
Orji pointed out that being an oil and gas-dependent country, Nigeria is highly vulnerable and exposed to the risks and challenges of the energy transition with the recent announcement by 26 countries and some financial institutions concerning the debate.
According to him, the disclosure at the last United Nations Climate Conference, COP26 in Glasgow by some countries that they were ending financing of overseas fossil fuel energy projects by the end of 2022 pose considerable challenge to the country.
He maintained that this is an indication that the global energy transition agenda is already reshaping the oil and gas landscape.
Also speaking, Nafi Chinery, West Africa Regional Manager at the NRGI, said Nigeria’s emphasis on gas as a transition fuel aligns with the thinking of most countries in Sub-Saharan Africa, and the African Union Commission in the run-up to COP27.
Highlighting the huge energy poverty on the continent, she disclosed that Africa, with 17 per cent of the global population, accounts for only 3.1 per cent of the over 26,823 terawatt-hours of electricity generated, and 3.3 per cent of the primary energy consumed globally in 2020.
She explained that the continent’s average per capita electricity consumption remains at about 600kilowatt hours per year compared with a world average of about 3,200-kilowatt hours.
In other words, she noted that while Africa consumes less and accounts for little of the global carbon emission, it is impacted more by the effects of energy transition and needs to act fast in considering alternatives, if it is to guarantee the future of its economies.
In his remarks, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Bello, urged Nigeria to lead the conversation on energy transition for Africa, by developing a roadmap for the implementation plan for the continent.
Also in his goodwill message, the Chief Finance Officer of the Nigerian National Petroleum Company Limited (NNPC), Umar Ajiya expressed the company’s support for Nigeria’s 2060 net zero emissions target.
Ajiya commended NEITI for organising the dialogue and helping to bridge the trust gap between the government and the people.
The EITI Country Manager, Anglophone Africa, Dr. Mike Uzoigwe, in his comments, highlighted that the energy transition discourse in Nigeria will impact the country’s revenue.
The multi-stakeholder platform is meant for state and non-state actors to debate, engage and make meaningful contributions to the ongoing discourse on the transition from fossil fuel energy sources.
