Stakeholders in the energy sector have called for more commitment from government and players across the energy value chain to drive energy security.
They gave the advice at the 2024 Nigerian-British Chamber of Commerce (NBCC) energy group event on Thursday, August 15, 2024, in Lagos.
The theme of the event was: “Securing Nigeria’s Energy Future: The Way Forward.”
They said that this would help to reshape the industrial sector and create a vibrant energy future for the country.
Mrs Olu Verheijen, Special Adviser, Energy, to President Bola Tinubu, reiterated the need to find solutions to the country’s energy insecurity, particularly with Nigeria as a top 10 gas reserve holder.
She said that in evaluating the country’s performance over a decade, 76 per cent of Nigeria’s gas reserve was undeveloped.
She noted that the Tinubu administration had taken steps via the presidential directives to make the country’s energy environment more attractive for investments.
According to her, government is ready to improve regulatory certainty to make Nigeria a top three destination for investments in oil and gas.
“There have been presidential directives to clarify the role of regulators to attract investment in upstream and midstream sectors and to focus on fiscal incentives to drive energy transition to gas among others.
“We have issued fiscal incentives and have attracted over $500 million and have started paying our gas debts.
“The President also launched an initiative to bridge the metering gap, we have grown our grid capacity by having a commercially viable value chain and designed targeted subsidies to protect the poor.
“In seeking energy abundance for Nigerians, we are committed to working with stakeholders to deliver prosperity to Nigerians,” she said.
Mr Ray Atelly, President, NBCC, noted that in a world where energy shaped the very foundation of societies, a focus on energy had taken the centre stage like never before.
Atelly stated that the event’s theme resonated deeply with the current need of Nigeria given that the country’s energy sector was characterised by a substantial gap between demand and supply.
According to him, the global shift towards sustainability underscores the urgency for Nigeria to diversify its energy sources, particularly towards renewables like solar, wind, and hydropower.
“As we confront environmental challenges and endeavour to meet the energy needs of a growing population, this transition opens up a world of possibilities.
“Our discussions throughout the day will delve into maximising oil and gas resources, renewable energy adoption strategy, energy access – affordability and availability, and stakeholder role and engagement,” he said.
Mr Nnamdi Anowi, General Manager, Production, Nigerian LNG (NLNG), said it was essential for Nigeria to align strategies with both current realities and future aspirations in a rapidly evolving global energy landscape.
Anowi noted that the country’s journey towards energy security was faced with numerous challenges ranging from infrastructure constraints to the need for technological innovation and regulatory support.
He stated that these challenges also presented opportunities to forge stronger collaborations, adopt groundbreaking solutions, and champion policies that would fortify the energy sector.
“At Nigeria LNG Ltd., we recognise that energy is not just a commodity but a critical driver of economic growth and national development.
“We must design the future of energy for Nigeria, ensuring that it is secure, accessible, and modern in a world that is transitioning to cleaner energy.
“We must embark on this journey to grow our energy for the future sustainably and responsibly, while at the same time maintaining energy security.
“We cannot achieve this desire without requisite commitments from the government through policy and legislation to guide the framework and guarantee investments.
“Government at all levels must play their part towards securing energy for our future,” he said.
Mr Raph Gbobo, Managing Director, Shell Nigeria Gas, noted that in energy transition, gas was the fastest growing fossil fuel with a very broad industrial application.
Gbobo said measures to drive energy security in the immediate term included enforcing discipline and transparency in the gas transportation network operation and implementing gas balancing.
He stressed the need to enforce contractual terms across the gas value chain, implement network code, and eliminate gas to power debts.
He said in the medium term, the energy sector must transition to cost reflective pricing, install and maintain the right meters, upgrade of existing transportation infrastructure, promote willing-buyer/willing-seller marketplace.
“It is critical to complete ongoing gas pipelines and network interconnectivity and set globally competitive fiscals for gas.
“In the long term, the Federal Government should support investment in gas infrastructure and offer fiscal incentives to incentivise distribution infrastructure investments,” he said.
By Rukayat Moisemhe
