The Federal Government has decried the risk inherent in the limited international financing on Nigeria’s quest for energy transition and roadmap to attaining net-zero. Timipre Sylva, the minister of state for Petroleum Resources made this known in Abuja on Thursday.
According to him, there have been policies and pronouncements at governmental and corporate levels aimed at discouraging investment in fossil fuels.
“We have seen decisions by some IOCs to reduce or outrightly stop long-term investments in upstream projects and development of new technologies for exploration, production and processing of crude oil, or servicing the existing technologies.
“Penalties may soon be put on the production and use of fossil fuels, directly or indirectly, in order to bridge the gaps that may be created by large taxes raked by developed countries from the consumption of oil,” he said.
Sani Gwarzo, minister who was represented by the permanent secretary, Federal Ministry of Petroleum Resources, at the 2022 Oloibiri Lecture Series and Energy Forum, with the theme, ‘Global Energy Transition: Implications on Future Investments in the Nigerian Oil and Gas Industry’, stressed on the urgent need for adequate financial investment, technology development and effective policies to strengthen the Nigerian oil & gas industry.
According to him, the development in the sector has actually informed the government’s renewed effort to ensure a full implementation of the Petroleum Industry Act that recently signed by President Buhari.
” We need to consolidate our resources, develop cross-border infrastructure and expand regional energy market to guarantee long-term energy security.
“As we all know, Nigeria is still bedeviled with energy poverty. Nigeria currently has one of the highest rates of energy poverty in the world.
Read also: Growing insecurity poses risks to Nigeria’s energy projects
“Energy transition is about providing clean energy, and not about discriminating between energy sources.
“In the face of the current high level of energy poverty worldwide, all energy sources will be required to achieve the Sustainable Development Goal on energy,” he said.
In his remark, Bello Gusau, the executive secretary, Petroleum Technology Development Fund, noted that growth in renewable energies would result in an increase of global energy demand by 2050.
According to him, petroleum and other liquid fuels are expected to remain relevant in the world’s largest energy source in 2050, adding that renewable energy sources, including wind and solar would grow to nearly the same level.
He said, “Based on projection, future investments in the Nigerian oil and gas industry may decline due to the global push for clean energy.
“Today, Nigeria’s petroleum industry contributes approximately 80 percent of the Federal Government’s revenue and 90 percent of Nigeria’s export earnings.
“Therefore, it has become very important that we start thinking of alternative sources of energy outside the fossil-based systems of energy production and consumption (including oil, natural gas and coal), and pay more attention to renewable energy sources like wind and solar, as well as lithium-ion batteries.”
