Nigeria Adopting Phase-Down Approach To Energy Transition – NUPRC

Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe at the Africa Economic Summit on Wednesday in Lagos said that Nigeria is adopting a phase-down approach to transiting to cleaner sources of energy.

Represented by Head, National Data Repository, NUPRC, Bashir Indabawa, he said that Nigeria is committed to achieving a low carbon footprint.

Komolafe said the global energy transition was a reality, adding that it is affecting investments in fossil fuel industries.

“Nigeria is fully committed to the COP 26 agreement, having pledged to achieve net-zero targets by the year 2060.

“However, the implementation process would have to align with our strategic national interest toward energy security and sustainability.

“In keeping with this commitment, we will be adopting the ‘phase-down’ as against the ‘phase-out’ approach in exploitation and utilisation of our endowed energy resources.’’

Komolafe said the government had adopted gas as its transition fuel and was working toward gas reserves growth, optimising gas production, increasing domestic gas utilisation as well as gas flare elimination.

Technical Adviser, Gas Business and Policy Implementation to the Minister of State for Petroleum Resources, Justice Derefaka said the Petroleum Industry Act (PIA) was critical to gas development.

Derefaka said the PIA had generous fiscal provisions aimed at attracting investment in gas exploitation and utilisation.

According to him, other policies aimed at deepening gas utilisation in Nigeria include the Decade of Gas initiative, the National Gas Expansion Programme, and the National Gas Flare Commercialisation Programme.

General Manager, Market, Competition and Rates Division, Nigerian Electricity Regulatory Commission (NERC), Sharfuddeen Mahmoud said there was chronic energy poverty in Nigeria.

Mahmoud said the problem was being addressed through the gas to power initiative of the Federal Government with agreements being put in place to ensure the stable supply of gas to electricity generation companies.

He said NERC was also giving support to renewables which were being piloted by the Rural Electrification Agency to provide off-grid electricity for Nigerians.

Chief Executive Officer, Axxella Group, Bolaji Osunsanya said the creation of gas-based industrial clusters across Africa would boost the continent’s economy.

Osunsanya, represented by Chief Strategy Officer, Axxella Group, Fisayo Duduyemi said the company had been making massive investments to bring gas closer to industries in Nigeria.

Speaking earlier, Founder, Africa Economic Summit, Brian Reuben said the summit was aimed at proffering solutions to the economic problems affecting Africa.

Reuben said in spite of its huge potential and vast natural resources, Africa was still lagging behind in terms of human capital development.

He said there was a need for African countries to increase collaboration and forge strategic partnerships that would reposition the continent for greatness.