By Adaobi Rhema Oguejiofor
Hundreds of millions of people in Africa still lack access to electricity, as well as clean, reliable forms of energy. This limits access to education, employment, and curbs the ability of people to contribute to a productive economy in Africa.
Access to energy and energy security remains a critical requirement for the African Continent, as it is in need of affordable, reliable, sustainable, and modern electricity for all in order to drive the realization of the United Nations Sustainable Development Goals (SDG) 7 of universal energy access by 2030.
This affordable and reliable energy provides the right platform for businesses in Africa to create and retain jobs for its fast-growing population, which also further makes the Continent sustainable.
The Chief Executive Officer (CEO) of Seplat Energy, Mr. Roger Brown, said this while delivering a Keynote speech at the Africa Oil Week (AOW) in Cape Town, South Africa. The event was themed, “How Seplat is Driving Sustainability Through Energy Transition and Security in Nigeria.”
According to Brown, up to 600 million Africans have little or no access to energy, because energy infrastructure in the continent has remained poor and lacks the right investments. He said that affordable and reliable energy allows businesses to create employment opportunities in Africa, thereby giving the fast-growing population a future in their country of birth and avoiding mass migration.
The CEO, while speaking at the conference, added that about 900 million Africans still use biomass when cooking and it is causing all kinds of problems. He said that it steals time and productivity from the women and children who have to collect firewood for cooking, it causes smoke pollution that in turn causes poor health, and it is also estimated to cost the lives of nearly 500,000 Africans every year, which is unacceptable and needs to change.
Brown stated that this lack of reliable energy sources is a problem that needs to be solved for Africa and its people, not just the billion Africans present today but for the 2.5 billion that will call the continent home in about 30 years. He revealed that it has been analyzed and brought forward that, in a few years from now, 50 percent of the people with no access to electricity will be living in just seven countries, and Nigeria will be one of those countries.
The Seplat Boss further explained that in areas where people do have access to electricity in Africa, it is often from small-scale generators that run on diesel or petrol and has to be imported, which is a part of the problem that has to be addressed, especially in Nigeria.
In his words, “though, it’s clear we need to increase access to affordable, reliable, and sustainable energy, but at the moment only three per cent of the world’s investment in energy systems goes into Africa.”
He stressed that Africa has the right to develop and must use its natural resources to do that, noting that the transition cannot be funded solely by debt or outsourced.
Still speaking, he expressed that countries like Nigeria need to move away from their reliance on diesel and Premium Motor Spirit (PMS) generators, as that will improve health, and lower the cost of electricity, which is severely holding back development in all sectors of the nation.
Brown further stated that gas is the transition solution, adding that upstream oil and gas development is critical to fund the transition but there is a need to eliminate theft, flaring, and leaks, and operate with lower carbon intensity.
“Africa needs to balance the “E” and “S” in Environmental, Social and Governance (ESG). The North and South must work together to ensure ‘Development’ and ‘Climate’ do not become competing objectives, with the loser being ‘Social Development’.
“Raising investment for energy transition will boost Nigeria’s economy; drive development; create jobs and prosperity; reduce emissions vs status quo; underpin future renewable deployment; and support a just and affordable energy transition,” he concluded.
The international Energy Agency (IEA) in a recent report, agreed that addressing Africa’s energy challenges requires meaningful investment from both the public and private sector, adding that currently, only about three per cent of energy investments worldwide are made in Africa, even though the continent is home to 17 per cent of the world’s population, with over 1.2 billion people and this is a figure that is expected to double in the next 30 years.
The IEA also stated that Investments in resilient and efficient power grids will be critical to meeting the growing energy needs of densely populated urban centres and growing industries, noting that both centralized and decentralized power systems will be important for expanding electricity access to all Africans.