The global energy transition presents a path to prosperity for millions of Nigerians and Africans, if the issues of infrastructure, innovation, and research investments to ensure the transition is inclusive and equitable can be adequately prioritised.
This is as Nigeria needs aid from developed countries to attain its 2060 $410 billion Energy Transition Plan (ETP).
Chairman, Green Energy International Limited, Prof. Anthony Adegbulugbe. Who made this known, said the country cannot realise the target alone.
He made this known in his keynote address at the 2024 Nigerian Association of Energy Economists/ International Association of Energy Economists (NAEEIAEE) Annual International Conference in Abuja.
He insisted that Africa needs help to achieve the energy finance and advanced technology needed to achieve this.
His words: “The ETP gives a price tag of USD 1.9 Trillion for Nigeria to reach net zero by 2060, of which USD 410 billion will be above business-as-usual spending.
” These figures are definitely beyond Nigeria’s ability alone. The Advanced Economies must come to her aid.”
He said about 70 per cent of Nigeria’s primary energy supply is derived from biomass. He said poor on- grid power supply, which rarely exceeds 5,000MW, forces Africa’s largest economy to rely on more than 14,000MW of inefficient petrol and diesel backup generators across the country, contributing to around 30 per cent of the fine particulate matter emissions from the continent (USAID report, 2023).
He alluded to the United Nations that said Nigeria has the highest rate of deforestation worldwide, losing about 3.7 per cent of its forest yearly.
He stressed that “All hands must be on deck to address the existential challenges of climate change. As responsible citizens of the globe, we must recognise that there is no ‘Plan B’ in addressing climate change.
“Today, it is more important than ever to drive forward the global energy transition in the interest of climate change mitigation, energy security, and economic diversification and development.”
He said the African continent is energy-poor, the poorest in the world.
About 600 million Africans lack access to electricity, said Adegbulugbe, who stressed that while over 900 million rely on traditional biomass fuels, such as wood and charcoal, for cooking and heating.
Also speaking, NAEE president, Dr. Hassan Mahmud said the resource-curse syndrome is as a result of weak institutions and poor governance that have led to the inability of some countries to transform their abundant human capital and natural resources endowment.
He said that developing countries cannot transform their economies despite their huge energy potential due to their institutional structures.
“We must admit, particularly for developing and emerging economies, that a key factor that determines our ability to transform our abundant energy potentials (both fossil fuel and renewables) to economic growth and development, and improved standard of living of our citizens, is our governance structure and institutional arrangements. “Abundant evidence in the literature has established that weak institutions and poor governance have led to the inability of some countries to transform their abundant human capital and natural resources endowment, to positive economic and social outcomes, including industrialization and political stability – the Resource- Curse Syndrome,” he said.
This year’s conference is, themed “The Energy, Economy, and Environment Nexus: Imperative for Good Governance and Sustainable Development,” – centering on exploring the effective linkage of these three key corridors (Energy, Economy and Environment), through good governance ( rule of law, transparency and accountability), to maximise the benefits of our energy potentials for economic development and industrialization.
Mahmud said in the direction of evolving good governance in energy development and uses in Nigeria, a major achievement was recorded in the establishment of a robust and country- specific legal instrument to facilitate the transition and transformation.
He said the Petroleum Industry Act (PIA) of 2022 marks a significant milestone in addressing some major structural, institutional and bureaucratic deficiencies in the energy sector.
He added that it prioritised the reforms to Nigeria’s energy sector, streamlining the regulatory framework, encouraging investment, and improving transparency. These reforms, according to him, come at a critical time, as Nigeria seeks to diversify its energy mix, moving away from the heavy reliance on oil and gas to incorporate renewable energy sources, including solar, wind, and hydroelectric.
The NAEE said the PIA is meant to foster a more competitive and dynamic energy market, positioning Nigeria as a regional leader in energy development with particular emphasis on creating more local content and boosting indigenous capacity within the energy sector.
He said recognising the need to harness the capabilities of indigenous professionals and firms towards ensuring that our energy sector remains globally competitive while fostering economic emancipation and poverty-reducing growth.
Continuing, he said “However, regardless of the innovative and comprehensive pillars of the PIA, evolving a matching institutional and political arrangements to facilitate the implementation of the legal instrument to fast-track the transition from Nigeria energy sector potentials to inclusive and sustainable economic growth and development has remained, rather elusive
“At this conference, we would therefore delve into some of these teething governance issues and institutional structures, as well as other relevant and related technical issues on the Energy, Economy and Environment nexus.
We have a huge line-up of researchers, policy makers and professionals, in diverse fields, to facilitate discussions in these areas during the plenary and concurrent sessions.
“We also have a dedicated roundtable session tomorrow to mark the World Energy Day, where discussions would centre on climate and environmental implications of our energy production and consumption processes, as well as other macroeconomic consequences.”
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