Mr Gbenga Komolafe, the Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria is adopting a phase-down approach to transiting to cleaner sources of energy.
The Africa Economic Summit on Wednesday in Lagos was represented by Mr Bashir Indabawa, Head, National Data Repository, NUPRC, he said that Nigeria was committed to achieving a low carbon footprint.
Komolafe said the global energy transition was a reality, adding that it was 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.
Mr Justice Derefaka, Technical Adviser, Gas Business and Policy Implementation to the Minister of State for Petroleum Resources, 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.
Mr Sharfuddeen Mahmoud, General Manager, Market, Competition and Rates Division, Nigerian Electricity Regulatory Commission (NERC), 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 stable supply of gas to electricity generation companies.
He said NERC was also giving support to renewables which was being piloted by the Rural Electrification Agency to provide off-grid electricity for Nigerians.
Mr Bolaji Osunsanya, the Chief Executive Officer, Axxella Group, said creation of gas-based industrial clusters across Africa would boost the continent’s economy.
Osunsanya, represented by Mr Fisayo Duduyemi, the Chief Strategy Officer, Axxella Group, said the company had been making massive investments to bring gas closer to industries in Nigeria.
Speaking earlier, Mr Brian Reuben, the Founder, Africa Economic Summit said the summit was aimed at proffering solutions to the economic problems affecting Africa.
Reuben said in spite its huge potential and vast natural resources, Africa was still lagging behind in terms of human capital development.
He said there was the need for African countries to increase collaboration and forge strategic partnerships that would reposition the continent for greatness. (ASO)
