Stakeholders have once again emphasised the importance of leveraging Nigeria’s vast energy resources to transform the power sector and drive economic progress. Experts agree that securing the nation’s energy future depends on effectively utilising its diverse natural resources.
With an estimated 209.26 trillion cubic feet (Tcf) of natural gas, Nigeria boasts the largest reserves in Africa and ranks eighth globally. Energy experts highlight that unlocking this potential could significantly advance the country toward energy security and economic self-reliance.
Speaking at a forum in Lagos recently, David Alaba, the chief executive of a gas firm, said that energy security is a cornerstone of Nigeria’s economic development, making a stable and sustainable energy sector essential for the nation’s long-term growth and prosperity.
He said, “By addressing the energy deficit and advancing industrialisation, collaborative initiatives hold transformative potential for strengthening Nigeria’s economic resilience. The development of oil and gas assets, alongside investments in cleaner energy solutions, drives job creation, attracts foreign and domestic investment, and stimulates local economies. These efforts align with global energy trends, positioning Nigeria as a competitive player in the international energy market.
“Nigeria’s abundant gas resources present a unique opportunity to secure a resilient energy future. With vast reserves and strategic initiatives, the country is well-poised to lead Africa’s energy transition. For instance, the recent acquisition of Shell’s onshore assets by a collaborative effort and commitment to sustainability and innovation highlight its pivotal role in the nation’s transformative journey. By leveraging natural gas as the backbone of its energy strategy, Nigeria can achieve energy security, catalyse economic growth, and contribute meaningfully to global climate action.”
Another expert, John Ojo, said Nigeria’s energy sector is at a crossroads. “Despite being one of the world’s top oil producers, the country faces critical challenges in achieving energy reliability. Energy security directly impacts Nigeria’s economy, which relies heavily on energy resources. Alarmingly, only about 60 per cent of the population has access to electricity, leaving millions without reliable and affordable energy.”
Ojo stressed the urgent need for energy decarbonisation to ensure sustainability and combat climate change. According to him, this energy gap hampers industrialisation, slows economic development, and diminishes the quality of life for millions.
Across Africa, many regions, including Nigeria, still rely on traditional biomass, diesel, and heavy fuel oil, contributing significantly to environmental pollution and greenhouse gas emissions.
Paradox of Abundance Amid Energy Poverty
Ojo further highlighted the stark contrast between Nigeria’s immense energy wealth and the reality of energy poverty. He said, “Just beneath Nigeria’s soil lies enough natural gas to power the entire African continent for decades. Yet, approximately 40 per cent of our population relies on generators for electricity. This paradox reflects both the challenges and opportunities before us.”
Also, Felix Odu, another energy expert, pointed out that power outages and unreliable electricity access cost Nigerian businesses an estimated $29 billion annually. “For decades, opportunities have been squandered. Gas flaring has wasted resources that could power millions of homes and generate billions in revenue. Underinvestment in infrastructure and the perennial power supply issues—commonly referred to as the ‘NEPA problem’—have perpetuated an overreliance on generators, burdening businesses and households alike,” Odu said.
He compared Nigeria’s trajectory with other resource-rich nations. He said, “With similar gas reserves, Qatar has achieved universal energy access and global energy prominence, while Malaysia has leveraged its oil wealth to drive economic development. These examples illustrate what is possible when natural resources are effectively harnessed for national growth.”
Collaborative Efforts and Strategic Investments
Stakeholders advocate for greater collaboration among energy companies to address these challenges. The recent example of Renaissance Africa Energy Company and its partners’ $2.4 billion acquisition of Shell’s onshore operations in Nigeria has been commended. Experts said this strategic move, involving five energy companies, positions Renaissance as a transformative player in the energy sector.
The acquisition includes an asset base exceeding $3 billion, twelve operational oil and gas licenses, and two modular refineries. Stakeholders believe this move will significantly reshape Nigeria’s energy landscape. “This acquisition is a turning point for Nigeria’s energy sector. It demonstrates the potential of leveraging local and international partnerships to drive growth,” said Jude Okoh, CEO of JBI Energy.
Energy as a Catalyst for Economic Growth
Reliable and affordable energy is essential for industrialisation, job creation, and productivity. “Energy access is fundamental to improving living standards, enabling access to education, healthcare, and other essential services,” Okoh added.
Okoh emphasised that developing a diversified energy mix, including renewable sources, is critical for enhancing energy security and reducing dependence on volatile global markets. He noted that initiatives like the Renaissance acquisition give Nigeria a unique opportunity to address its energy challenges and harness its vast potential.
According to stakeholders, Nigeria’s path to energy self-reliance lies in strategic investments, effective resource management, and a commitment to sustainability. They also said that by addressing its energy challenges, the country can unlock unprecedented economic growth, reduce poverty, and improve the quality of life for its citizens.
