By Moses Patience Chat
The Executive Secretary (ES) of the African Energy Chamber ( AEC) NJ Ayuk, has said that fostering Nigeria’s economic potential Is a must for the respective new Nigerian Ministers of State for Oil and Gas, Senator Heineken Lokpobiri and Hon. Ekperikpe Ekpo.
He said that Nigeria is at the top of a list that no country would even want to appear on as a 2021 report by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations, and the World Health Organization identified Nigeria as first in list of countries experiencing extreme energy poverty.
According to him, approximately 86 million people, about half of all Nigerians, lack access to an electrical grid. That percentage is closer to three-quarters of the population in rural areas. The lack of access impacts Nigerians’ lighting, their cooking, their safety and health care, which are basically elements of daily living. And that doesn’t even get into energy poverty’s detrimental impact on the Nigerian economy and overall stability.
He revealed that the Energy and Natural Resources subcommittees published a report titled “Enabling Growth in Nigeria’s Energy & Natural Resources Sectors: Sector Challenges and Proposed sustainably.”
The report, he said, looks at the oil and gas sector’s current realities and describes a path for strengthening it, harnessing oil and gas to grow and diversify Nigeria’s economy, transitioning to renewable energy, and addressing energy poverty.
Ayuk added that the subcommittees’ report opens with some harsh realities that Nigeria has significant challenges to overcome before the country can fully reap the benefits of its oil and gas sector. But, the report goes on to provide strategies for overcoming those challenges.
Ayuk explained that each of these challenges is hefty on its own, bundled together, they are proving to be serious obstacles to the economic growth Nigeria’s energy sector could and should be driving. What’s worse, according to him is that the Nigerian people are the ones who suffer because the infrastructure is unable to meet even the most basic requirements to improve their standard of living.
“To unlock Nigeria’s energy potential and bring it in line with the administration’s vision, the subcommittees have established ambitious targets. The first involves gaining a stronger foothold in the global marketplace. While Nigeria currently ranks as Africa’s largest oil producer, Tinubu’s Administration vows to see the nation become a top-10 destination for energy investments worldwide.
“Growing its base of domestic and international investors alike will not only enhance Nigeria’s energy industry but also expand all the supporting industries, promoting job growth and overall economic development. This is doable, particularly if the government creates an enabling regulatory environment. At the chamber, we have seen the power of government policies that encourage investment and foster world-class talent for energy innovation,” he noted.
The second target he said is to grow the economy through greater diversification. By fostering the development of other sectors, rather than simply continuing to rely almost exclusively on oil and gas, the administration hopes that by 2050, Nigeria’s GDP will expand eightfold, and unemployment will be capped at 8%.
“The chamber wholeheartedly agrees that natural gas will be a vital element in the energy industry as Nigeria and Africa seeks to both expand its energy security and grow its green energy initiatives. We have been promoting the expansion of natural gas as a clean alternative, and we are eager to see how Nigeria’s efforts in this cause will bear fruit,” he said.
The Subcommittee according to him stated that the third target is the achievement of net-zero emissions by 2060. As with its goal for increased economic diversification, the administration acknowledges that sustainability at such levels will require more reliance on natural gas while the country incorporates more renewables into the overall electricity mix.
“This measure echoes what we at the chamber continue to accentuate: We encourage robust green initiatives, at a pace that serves Africa and her people. Nations must not be prevented from using their own abundant natural gas reserves to supplement green energy while they are developing their sustainable infrastructure because this won’t happen overnight,” the AEC Boss said.
According to him, a final, and vitally important, target revolves around energy insecurity. The administration is striving to eradicate energy poverty once and for all by driving access to clean, affordable, and abundant energy for all its people. The goal is to increase electricity consumption ninefold to 1000kwh per capita by 2050. Again, this goal will rely on increased production of natural gas, which will be monetized to generate capital for infrastructure and can be used for much-needed gas-powered plants.
“The goal of eradicating energy poverty resonates strongly for us at the chamber. One of our greatest priorities is fostering initiatives that drive African economies toward greater prosperity and human dignity. And greater energy security is a main component of this campaign.
“We applaud President Tinubu’s efforts to drive Nigeria’s energy sector. We are encouraged by the successes so far in the infancy of his administration, and we look forward to seeing the further economic growth that his other measures will produce, Ayuk concluded.