FG Reaffirms Promise To Achieving Energy Independence By 2026

The Federal Government reaffirmed its ambition on Tuesday to become energy self-sufficient and a net exporter by 2026.

This was said by Bala Wunti, Group General Manager of National Petroleum Investment Services (NAPIMS), on Tuesday in Lagos at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE).

He spoke in a panel discussion about “Sustainable Energy Transition Strategy: The Role of Legislative Frameworks and Investment Programmes.”

Despite its commitment to reach net zero carbon emissions by 2060, Wunti said the government still prioritises eradicating energy poverty in the nation due to its vast hydrocarbon reserves.

He stated that the government's goal was to achieve complete independence from primary and secondary energy imports by 2026 and to become a net exporter of secondary energy resources.

Through the gas to power effort, which would promote industrialization and economic growth, Wunti claimed that the goal was to give 100% of the population access to energy.

However, he insisted that this could only be accomplished with strong legal frameworks and investment plans required to take full advantage of the prospects in the oil and gas sector.

In order to distribute energy in a more sustainable way, Wunti stated that a platform where market investment and financing come together is necessary.

He stated regrettably that the sector had seen a reduction in investments in recent years, which had brought about the world's current energy crisis.

He claims that current data from the Organisation of Petroleum Exporting Countries (OPEC) indicates that the global need for energy is $11.8 trillion.

According to Wunti, the current global energy crisis is a result of an energy imbalance caused by a shortfall in supply compared to demand, which has raised the cost of energy resources.

Additionally, Austin Avuru, Chairman of AA Holdings Ltd., stated that Africa must develop indigenous answers to the international oil companies' disposal of properties across the continent.

According to Avuru, the action was partly to blame for Nigeria's inability to fulfil its OPEC quota, and it was necessary to develop homegrown businesses to fill the gap left by the divestiture of the IOCs.

He stated that the best course of action was for the businesses to gain access to financing for oil and gas development from within the continent.

In order to achieve decarbonization while maximising the continent's enormous oil and gas resources, Avuru also urged the deployment of technology, increased natural gas production, and encouragement of tree planting.

Prof. Olalekan Olafuyi, the chairman of the SPE Nigeria Council, lamented earlier in his speech that many Africans lack access to energy.

Building a sustainable energy industry, according to Olafuyi, is essential for the African continent's continued industrialization and trade.

The African Continental Free Trade Area (AfCFTA) plan, he claimed, is supported by this, further highlighting the necessity for regional integration to address Africa's energy and climatic concerns.
 
“Ramping up sustainable energy generation capacity by 2030 according to the African Development Bank’s (AfDB) New Deal on Energy for Africa requires a minimum of $44 billion of annual financing.

“Maintaining and extending the pace of progress will thus require strong political commitment and sound governance, long-term energy planning, adequate political and fiscal incentives as well as public and private financing,” he said.