Pressing and perennial issues facing Nigeria’s energy sector were key focus of discussions among key industry experts who presented steps to be taken to address those challenges.
The experts gathered at a stakeholders meeting, led by Partner in charge of Perchstone & Graeys law firm’s Energy Group, Dr. Tolu Aderemi, titled ‘Digitisation: A Catalyst for Energy Transformation In Nigeria.’
At the event, the chairman, International Law Association (ILA), Aderemi, shed light on how Nigeria can take advantage and play leading role in the emerging Liquified Natural Gas (LNG) market during a meeting of Energy Stakeholder’s aimed at addressing the pressing and perennial issues facing the nation’s energy sector.
Aderemi noted that, the ongoing Ukraine-Russian conflict, and the European Union’s impending decision to cut off imports of liquefied natural gas (LNG) from Russia by 2030 present a unique opportunity for Nigeria, which the country does not seem to be cautious of, adding that, Nigeria has ‘over the past 20 years, cumulatively earned approximately $21 billion from its energy sector, in particular, from the liquified natural gas market.’
He lamented that Nigeria, Africa’s largest oil producer, has faced ongoing complex issues in its energy sector, characterized by a combination of theft, vandalism, and inefficiencies, explaining that “According to the Nigerian National Petroleum Company (NNPC), oil theft has cost the country an estimated US$1.5 billion annually, severely impacting its ability to meet production quotas set by the Organization of the Petroleum Exporting Countries (OPEC).”
Former minister of State for Petroleum Resources, Prof. Ibe Kachikwu, in his keynote address, reflected on the government’s efforts to combat oil theft and the importance of adopting technology to enhance production capabilities, expressing optimism that, with concerted efforts and the right preventive technologies, President Tinubu’s administration can achieve its ambitious target of producing 2 million barrels per day.
A commissioner at NERC, Dr. Yusuf Ali, provided insights into the government’s efforts to mitigate theft within the electricity sector.
He referenced the Electricity Act and various regulations aimed at enhancing security and efficiency. “The government is committed to reducing the incidence of theft in the electricity sector.
However, we must also consider the integration of ‘useful technology’ that will alleviate the load on the national grid,” he stated.
A Partner and head of the Information Communications and Technology (ICT’) Practice Group at the firm, Mr. Ugo Obi emphasised the importance of real-time monitoring and predictive maintenance. We need to implement live grid simulations and AI-driven fault detection to enhance our energy infrastructure, he said.
On his part, the managing director of Lightspeed Energy Systems (UK), Emmanuel Haruna, outlined a series of key strategies aimed at enhancing the national grid’s efficiency and resilience. He emphasised the transformative potential of Digital Twin (DT) technology, which enables the creation of a real-time virtual replica of the physical grid.
The managing director/chief executive officer of Mojec International Limited, Ms. Chantelle K. O. Abdul echoed the need for diversification in energy sources.
“To achieve optimal use of the national electricity grid, Nigeria must seriously consider alternative fuel sources such as renewable energy. We need to move towards a cleaner, greener energy future,” she said, underscoring and advocating for a multi-faceted approach to energy production.
Despite the existence of several laws governing the energy sector, a Partner at Andersen Tax, Mr. Adediran Adeyemi pointed out that, enforcement remains a significant challenge. Nigeria is not lacking in legal frameworks; rather, the effectiveness and enforcement of these laws must be prioritized, he stated.
Speakers at the event included a former Minister of State for Petroleum, Prof. Emmanuel Ibe Kachikwu, NERC Commissioner, Planning, Research and Strategy, Dr. Yusuf Ali, and other leading local and foreign private sector players, stakeholders, and thought leaders.
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