Reps call for creation of revenue roadmap as oil proceeds decline

The House of Representatives on Wednesday at plenary harped on the need to create an economic revenue roadmap for the future of Nigeria as the need for fossil fuels and hydrocarbons is declining.

It therefore mandated the Committees on Climate Change, Gas Resources, Environment, Petroleum Resources (Upstream), Solid Minerals to liaise with relevant stakeholders to provide a 10- year framework for the utilisation of current resources towards developing other sectors.

While Committees are to report back within 12 weeks for further legislative action, the Committee on Legislative Compliance is mandated to ensure compliance.

These decisions were sequel to the adoption of a motion sponsored by Dennis Idahosa from Edo who said a resolution was passed at UN Framework Convention on Climate Change (UNCOP26) on November 12, 2021 to phase down Fossil Fuel ‘COAL’ to limit global warming to 1.5 degrees Celsius compared to pre-industrial levels.

He noted that Parties to the Paris Agreement adopted at COP21 in Paris on 12 December 2015, entering into force on 4 November 2016 are expected to transit from Fossil Fuel to clean energy and reach a Net Zero ambition for greenhouse gases emission.

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The lawmaker acknowledged that the oil and gas sector is Nigeria’s biggest revenue-generating sector accounting for over 65% of the country’s total revenue with a production capacity of 25million barrels per day.

Idahosa said: “All over the world and with the advent of rapid technological advancement, the need for Fossil Fuels and hydrocarbons is declining, some countries like Sweden, China, Costa Rica, Nicaragua and many others are taking actions that will lead to complete dependence on renewable energy soon.”

He expressed concern that with the recent resolution by all major countries at the UNCOP26 2021 Summit, countries like Nigeria, which depend mainly on hydrocarbon and Fossil Fuels for revenue and survival, will be the worst hit except careful and intentional precautions are taken to secure the future of Nigeria.

The lawmaker also expressed worry that Nigeria has come up with futuristic plans in the past like Vision 20:2020 plan and the desired result was not fully achieved.

He noted that Nigeria has numerous potential sources of revenue, and if attention is not placed on them early, it will be of no benefit to citizens and the nation at large.

“Aware that the President while delivering his statement at the COP26 Leaders Summit further emphasized that for Nigeria, climate change is not about the perils of tomorrow but what is happening today and pledged that Nigeria would cut its emissions to net-zero by 2060

“Further notes that the President had recently stated from an ‘expert source’ that the viability of fossil fuels and hydrocarbons is speculated to last for another 20 years which gives the nation time to utilize and redirect the resources gained from oil and gas towards the development of other sectors of the economy for the overall benefit of the nation”, Idahosa added.

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