Significant Investments Needed To Accelerate Energy Transition, Says NNPC Board Chairman

The Chairman of the Board of the Nigerian National Petroluem Company Ltd, Mrs Margery Okadigbo, has said that Nigeria requires significant investments in the oil and gas sector to accelerate the country’s quest for energy transitioning.

She said this in her remarks delivered at this year’s Offshore Technology Conference with theme, “Energy transition and the future of Africa.”

The conference brought together energy professionals to learn new trends and define the future of Africa’s energy sector.

The energy industry is currently facing increasing demands to clarify the implications of energy transitions for their operations and business models, and to explain the contributions that they can make to reducing greenhouse gas emissions so as to achieve the goals and commitments of Paris Accord and COP 26.

Nigeria is pursuing energy transition in order to promote economic growth and is gradually investing in renewable energies, primarily solar so as to reduce carbon emissions whilst continuing to exploit hydrocarbon resources, especially natural gas which is the energy transition fuel for Nigeria.

During the COP26 summit in Glasgow, President Muhammadu Buhari had pledged that Nigeria would cut its carbon emissions and reach net-zero by 2060, underlining the key role of gas in the country’s energy transition roadmap.

While nations such as the United Kingdom, the United States, and the European Union have set targets to achieve net-zero by 2050, Nigeria has opted to join Saudi Arabia and Russia in vowing to reach net-zero by 2060.

This target is lagging 10 years behind the recommended deadline, which the UN along with many climate scientists would like to achieve to stop global warming.

But speaking at the conference, the NNPC Chairman explained that achieving and sustaining a carbon neutral economy requires inclusive policy actions that guarantees access to finance and low carbon technology.

She told the gathering that the increasing social and environmental pressures on many energy companies had raised complex questions about the role of oil & gas in a changing energy economy, and the position of these companies in the societies in which they operate.

She explained further that as world leaders and businesses join in the global solidarity against climate change and reduction of carbon emissions, the NNPC Ltd is taking giant strides in lowering it’s carbon footprint, sustaining energy security and driving prosperity in Nigeria.

She said, “This is the topic that we have taken up in different energy fora and is consistent to our multi-layer consideration on the future of oil and gas and our transition plans.

“As the world transits to substituting energy sources for cleaner forms, Nigeria is still faced with numerous challenges in ensuring energy security, deepening domestic gas utilisation, and maximising revenues derivable from hydrocarbon resources.

“With the abundant oil and gas resources, Nigeria has chosen gas as the transition fuel to bridge the energy gap and create economic development.

“As world leaders and businesses join in the global solidarity against climate change and reduction of carbon emissions, NNPC Ltd is taking giant strides in lowering her carbon footprint, sustaining energy security and driving prosperity in Nigeria.

“We believe that achieving and sustaining a carbon neutral economy requires inclusive policy actions that guarantee access to finance and low carbon technology.”

The NNPC Chairman expressed optimism that the enactment of the Petroleum Industry Act, 2021 will guarantee a reasonable return on investments, promote business and operational transparency and proffer better fiscal regimes than it was.

In effect, she explained that the Act will provide a legal framework and guarantee investor confidence, adding that “it is expected that much more significant change in overall capital allocation would be required to accelerate energy transitions, especially getting some key capital-intensive clean energy technologies to reach maturity.”

Okadigbo urged participants at the conference to explore the opportunities provided by the gathering to create and draw on the wealth of experiences at their disposal for realistic and responsible transition to cleaner energy and energy for the future.

ENDS