By Ajibola Adedoye
Natural gas is poised to play an increasingly pivotal role in Nigeria as it offers a pathway to balance our immediate energy needs with our long-term climate goals.
Rt. Hon. Ekperikpe Ekpo, Honourable Minister of State, Petroleum Resources (Gas) gave this assertion in Lagos while speaking at the 2024 Annual Congress of National Association of Energy Correspondents (NAEC) on Thursday, October 3, 2024.
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The Minister said, Nigeria has an abundant natural gas, which is more environmentally friendly than other fossil fuels, and offers a crucial opportunity to serve both domestic and international markets.
“It is through gas that we can address our energy access challenges, power our industries, and improve the standard of living for our people. But it also provides us with the flexibility to meet our global commitments to reduce carbon emissions, making it a vital component in our transition to cleaner energy.
According to him: “Finance, Energy Security, and International Politics are the major factors that must be put into consideration for a seamless energy transition navigation in Nigeria.
“We are well aware of the financial challenges involved in driving energy development in Nigeria, particularly in the gas sector. However, we are making significant strides in unlocking investments. One major milestone is the forthcoming Gas Sales Purchase Agreement (GSPA) for the Brass Methanol Project, which will inject $3 billion into Nigeria’s gas industry. This investment will not only enhance Nigeria’s position in the global gas market but also stimulate the local economy by creating jobs and expanding our industrial base.
“In addition, under my leadership, as contained in the Petroleum Industry Act PIA 2021, we have constituted the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to address critical financing gaps in infrastructure development. This will go a long way in ensuring that our gas resources are efficiently harnessed and delivered to the market.
On how to ensure energy security, Rt. Hon. Ekpo opined that: “Ensuring a secure and stable energy supply is essential for Nigeria’s economic growth. In the gas sector, we have taken important steps to guarantee reliable energy delivery for power generation and industrial use. Just two weeks ago, we concluded the US-Nigeria Strategic Energy Dialogue where we arrived at key bilateral cooperation which include: The US Department of State, through its Energy and Mineral Governance Program committed to renewed technical assistance to further support the Nigerian Government and NNPC in reducing methane emissions from the oil and gas sector. The US Agency for International Development (USAID), through Power Africa, commits an additional $75-$85 million technical assistance to Nigeria. The US Department of Energy’s Net Zero World Program commits more than $1.3 million for clean energy technical support to Nigerian Partners.
“The geopolitical landscape plays a critical role in shaping energy policies and trade routes. We are advancing several initiatives to position Nigeria as a major global player in the energy market. The Nigeria-Morocco Gas Pipeline Project, which will traverse West African countries and deliver gas to Europe, is a major step forward. This project, once completed, will diversify Nigeria’s export routes and enhance regional energy security, ensuring that our gas serves as a catalyst for economic cooperation across Africa and beyond” he maintained.
In his submission, Engr. Gbenga Komolafe, Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) noted that energy security is the cornerstone of national development.
“For Nigeria, this means ensuring that our growing population has access to affordable, reliable energy while maintaining a balanced energy mix that protects us from volatility and geo-politics in global markets. Nigeria as a nation state is suitably positioned to become a superpower in the unfolding energy transition regime given its population of over 200 million people, huge gas resources and other abundant energy sources to achieve the right energy mix for powering her sustainable energy future”.
In his remark, Dr. Orji Ogbonnaya Orji, Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI) stated that his organization, civil society, and the media are natural allies in the ongoing fight against corruption and the pursuit of good governance in Nigeria’s extractive industries.
Represented by Mr. Taiwo Olasupo, South West Zonal Representative on the NEITI Board, Dr. Orji opined that “It is important to note that, for Nigeria to attract and retain the kind of long-term investment required to unlock its vast energy resources, transparency and accountability must be prioritized.
“Investors need assurance that their capital will be deployed in an environment where corruption is addressed, where the rules are clear, the laws clear, the processes open, stable policies, stable environment availability of information and where governance is transparent and predictable. Without these pillars, no serious investor will commit significant capital to our sector.
“Openness in governance, especially in resource management and revenue collection, is essential to restoring investors trust and confidence” he stressed.
The theme of this year’s conference organized by NAEC “Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics”.
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