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  • Oil & Gas - News
  • Updated: March 16, 2024

Amid global energy transition, NEITI urges FG to revise gas policy

Amid global energy transition, NEITI urges FG to revise gas

The Nigeria Extractive Industries Transparency Initiative (NEITI) is urging the federal government to enhance its gas policy in response to the ongoing global shift towards energy transition. 

Dr. Ogbonnaya Orji, the executive secretary of NEITI, made the appeal during the conclusion of a two-day capacity-building workshop and stakeholders’ engagement focused on methane emissions reduction in Nigeria.

The workshop, organized by the Centre of Journalism Innovation and Development (CJID) and the Natural Resources Governance Institute (NGRI), provided a platform for discussions on the critical role of gas amid the global energy transition.

Dr. Orji emphasized Nigeria's significant position as the country with the largest gas reserves in Africa and ranking ninth globally.

However, he stressed the necessity for a thorough review of Nigeria's gas policy to ensure optimal outcomes from this transitional phase.

”For this to happen, NEITI hereby renews its appeal to our government to embrace efficient gas commercialisation and utilization policy.

“For instance, NEITI’s recent report of the oil and gas industry disclosed total unremitted revenue of gas royalty payments of $559.8million.

“This is in addition to the outstanding unremitted sum of $828.8 million from unpaid gas flare penalty also disclosed by the same report.

“A close look at these figures indicated that more gas was flayed during the period than utilised, thereby denying the federation potential revenues and posing serious dangers to the global zero emissions agenda,” he said.

According to him, the energy transition and emission control will necessitate new technologies, require human capital, redefine roles and responsibilities, and involve costs in both human and material resources.

Orji said that the workshop and meeting of the stakeholders was appropriate, considering that developing nations required enough information and data on what the future holds for them to make an informed decision.

He added that the workshop also provided a platform for public debates and discussions necessary to chart a national agenda in energy transition

”This is why NEITI is currently reviewing Nigeria’s energy transition plan to establish the role of information and data in making informed energy transition decisions.

“Given the growing reality of energy transition and the strong linkage with emissions control, especially methane, it is important that we are constantly exposed to this type of quality training,” he said.

He stated that addressing the prediction of an upsurge in Nigeria’s energy demand, which may surpass the projected global average by 47 per cent by 2050, required the collaborative efforts of key stakeholders.

Orji underscored the importance of global partnership to mitigate the risk of energy transition through innovative and courageous reforms toward economic diversification.

The NEITI boss acknowledged that there were opportunities for investment in energy transition in the areas of technology, solid minerals, human capital development, and use of low-carbon hydrogen and gas exploration, which should also be optimally explored.

Chief executive officer of CJID, Dapo Olorunyomi, stated that the meeting was aimed at fostering better collaboration between stakeholders in reducing methane emissions in Nigeria.

On her part, the African director NGRI, Nafi Chinery, urged all stakeholders, particularly relevant government agencies to work in synergy to reduce methane emissions.

She also urged the media and civil society organisations to advocate for the move in their engagements, stating that proper coordination was critical in achieving various local and international commitments on methane. 

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