FG considers $5bn investment in gas to boost the economy

Amara Nwankpa, the Director of Partnerships and Development at the Yar’Adua Foundation, has stressed the need for Nigeria to carefully evaluate its energy transition pathways as it considers a $5 billion investment portfolio to boost the economy through gas.

Speaking at the ‘Maximising Just Energy Transition Opportunities Through an Inclusive Country Platform’, which was held in Abuja on Tuesday, Nwankpa said recent increases in energy prices, driven by the removal of fuel subsidies and a sharp rise in electricity tariffs, had raised concerns about energy affordability, particularly for low-income households, and come at a crucial time as Nigeria navigates its energy transition.

He noted that Nigeria is exploring significant investments in gas infrastructure with a $5 billion investment portfolio aimed at boosting the economy through gas.

“We are at a critical juncture. The decisions we make today about transitioning away from fossil fuels will have far-reaching implications for our economy and communities reliant on oil and gas production,” Nwankpa stated.

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Nwankpa also emphasised the importance of inclusivity in Nigeria’s energy transition, saying: “As renewable energy becomes more accessible, it’s critical that this transition does not leave marginalized communities behind.

“Today, only the wealthiest Nigerians can afford to buy PMS at current rates, and this raises serious concerns about energy accessibility for the average Nigerian,” he said. “Our goal is to ensure that the voices of marginalized and extractive communities are part of the energy transition conversation.”

Nwankpa stressed that energy transition is not just an environmental issue but a matter of social justice.

“The future of millions of Nigerians depends on how we navigate this transition. We must ensure it is equitable, sustainable, and beneficial for all”, he added.

Meanwhile, the other speakers at the event, echoed the call for a balanced and inclusive energy transition.

Patrick Okigbo III, Founding Partner at Nextier, urged more action and stronger political commitment to ensure the success of the transition.

“We need more coordination between stakeholders, including the private sector and the government, to drive this transition. The government should focus on regulating and enabling the private sector, rather than directly procuring or developing energy infrastructure”, he said.

Nnimmo Bassey of the Health of Mother Earth Foundation (HOMEF), spoke about the environmental impact of fossil fuel extraction in the Niger Delta, highlighting the urgent need for remediation.

He said, “Even if Nigeria spends all its oil revenue on environmental repair, it wouldn’t be enough to fix the damage done to the Niger Delta.

“As Nigeria faces rising energy costs and global pressure to transition to cleaner energy sources, it is clear that any successful energy transition must be inclusive, equitable, and driven by strong coordination between the public and private sectors.

“The voices of marginalized communities must be part of this process, ensuring that no one is left behind in the shift towards a more sustainable energy future.”