U.S indicates interest in Nigeria’s energy transition

The United States of America (USA) has expressed interest in partnering with Nigeria in its energy transition, security, access and reliability plan.

Geoffrey Pyatt, USA’s Assistant Secretary of State for Energy Resources, disclosed this in an interview with BusinessDay, stating that part of the strategy is that the U.S government is facilitating a strategic energy dialogue (SED) with stakeholders in Nigeria’s energy sector to foster collaboration in advancing energy partnerships and energy transition.

“The US wants to be the preferred partner of energy transition and security. We know you work with a lot of partners around the world but we have a wonderful opportunity to do more bilaterally because we already have a strong corporate footprint here and I think that a prospect for that to grow even further as our companies see president Tinubu and his government tackling some of the difficult issues of the past like the exchange rate unification, but I also see prospects for us to do more in these emerging areas,” he said.

He said the SED is about creating mechanisms for ongoing exchange between experts from both countries, as they navigate issues around energy security, transition and access while Proffering sustainable solutions.

He said Nigeria and USA are similar in many instances especially as big Oil and Gas explorers looking to better manage their resources in a way that does the least damage possible.

“We all need to double down our focus on the energy transition and the opportunities there, what that transition looks like is going to vary from country to country. Government cannot maintain a constituency for energy transition except they can demonstrate energy security and reliability,” he said.

He also hinted on possible inflow of investments on the back of what he described as the bold policy reforms president Tinubu is embarking on.

“And I think as progress is registered you will see more entrepreneurs interested which is partly what the dialogue is meant to facilitate, to raise the profile of energy and strategic energy cooperation in our overall bilateral relation and elevate where Nigeria fits into the Washington map of countries working around the world on these issues,” he said.

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Pyatt’s centred around reinforcing discussions between Nigeria and United States on the energy transition plan. Prior to the interview, he had held meetings with president Bola Tinubu, government officials and private sector operators.

“I came here as a reflection of the Biden administration’s commitment to our relationship with Nigeria and appreciation for the leadership that Nigeria has shown on some of the really fundamental energy issues,” Pyatt told BusinessDay.

But during their earlier engagement, Tinubu, as BusinessDay understands, called for a stronger and better cooperation with the United States, especially as Nigeria and the rest of the world move in the quest for renewable and other sources of clean energy.

The president also highlighted that Africa’s largest economy craves for enormous funding support to drive and accelerate its energy diversification. He therefore appealed to the United States and other developed nations to recognize that Nigeria and Africa have a challenge of poverty that must be addressed, consequently, the world must have a right balance between the fossil fuel and green energy in the race for energy transition.

Pyatt signaled that some of the issues raised at the meetings are what the proposed partnership seeks to addressed.

He said for instance, that the Clean Energy Demand Initiative (CEDI), a program run by the bureau to increase corporate investment in clean energy to support economic growth, Nigeria was one Of the very first partners, as well as other initiatives like the Net zero world, and the global methane pledge which commits to accelerating the reduction of methane flaring in oil and gas production.

“We have Nigeria as a founding partner of CEDI which was rolled out at COP-27 but we have not made a lot of progress in terms of execution and implementation here because we were waiting for the elections and the new government to take over,” he said.

Pyatt stated that there is a nexus between technology and energy as he noted that tech runs on energy adding that managing the energy system of the future will be digital and driven by technology, smart grids, and the ability to maximize the productivity of our energy sources

He added that the renewable sector in Nigeria should be bigger than it is today because the country has the solar resources, intensity and the space but it requires building the policy framework which incentivizes growth.

He recommended that the government must act fast because climate crisis is real as the climate change impacts is extremely dangerous.

“What I do know is that we all need to work together and the United States is absolutely committed to that partnership and I believe that your government as well as is committed to that partnership and is eager to think even more ambitiously about what we do together,” he said.

Asked about how some of those decisions taken so far by the Tinubu-led administration would enable mutual benefits for the two countries, he stated,”

I would not pretend to predict how Nigeria and its economy is going to unfold what is clear to me in listening to president Tinubu and his team is that, they are in a hurry to move the country forward and eager to do so in partnership with the united states and in response.

“The US president is committed to our partnership here and he understands how significant Nigeria’s success is for our interest in Africa and the wider region and also how important it is to mobilise resources that we can to help facilitate and empower reforms and tackle these issues which we also see in the United States as well like when there was a blackout in Texas last year.