• Thursday, July 25, 2024
businessday logo


We cannot accept dispositions to defund gas projects – Osinbajo

Buhari, Obasanjo, Gowon, others to attend Osinbajo book launch

Yemi Osinbajo, Nigeria’s vice president has said that Nigeria and Africa in general must not accept dispositions to defund gas projects. Rather, gas must be valued as an important transition fuel.

The vice president maintained this position while speaking at the ongoing sixth edition of the Nigeria International Energy Summit (NIES) in Abuja themed Global Perspectives for a Sustainable Energy Future.

“Gas must remain an important transition fuel, we cannot accept the disposition of some global north countries that gas project should be disfunded to enable faster progress towards renewable energy transition,” he said.

He added that Africa must not dwell on the belief that it is a victim in the renewable energy journey, adding that It must not be at the bottom of the food chain in the new world of sustainable energy.

The vice president was optimistic that the continent and Nigeria especially will drive the next stage of global economic progress and must play a strategic role in the sustainable energy future however key sector actors must do a lot of the work to achieve this goal.

“We can achieve this by recognising the opportunities early and intentionally developing all the potential around our natural resources including gas, solar and bio fuels; If we are to do anything in terms of the green energy future we should start from the low emission base and it is here in Africa we have the natural resources to do so,” he said

He said if Nigeria focuses on its strengths which are natural resources, it will move very fast in the renewable energy journey.

“Our energy transition plan is bold and innovative and it calls for the wrapping up of solar cells, we’ll be doing about 5.3 giga watts per year until 2060 and this is perfectly achievable with the production of over six billion litres of biofuel annually to steer the path to e-mobility and transition at least two million households to cleaner cooking source and electricity,” he said.

Speaking of opportunities, he said the African carbon market initiative which looks to open potentials in the carbon market is a mutually beneficial opportunity to explore.

He said there is need for clarity on where Nigeria is in its transition journey and what it needs to do hence he urged the private sector to clearly articulate their own energy ambition in alignment with the energy transition plan.

In a fireside chat, Gbenga Komolafe Commission Chief Executive (CCE), Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said Nigeria is well positioned to meet it’s energy need with the right energy mix as it transitions to cleaner energy.

Speaking about the role of regulators, he said regulators understand the challenges posed by the energy transition journey hence the regulatory agencies should be a business enabler.

“We have been very consultative and the process of making regulations have been participative and this is to ensure that the industry is not strangulated, we see ourselves more as a business enabler,” he said.

He said the NUPRC has a feedback mechanism to follow up on reactions to regulations from industry operators, noting that regulators are not static and are actively following the trend of the transition.

Also, Farouk Ahmed, Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said Africa has numerous resources but the problem is connecting it with the population growth.

Ahmed who was represented by Bashir Sadiq Executive Director, Corporate Services & Administration noted that regulatory agencies have the technical responsibility of guiding the industry operators using the PIA as well.

He noted that the PIA has some issues which can however be addressed as time goes on.