The Nigerian Association of Energy Economics (NAEE) has emphasized the importance of sustainable investments in all energy infrastructures, considering it a critical step for establishing a robust energy sector.
In light of this, the association urged the federal government to focus on enhancing the utilization of natural gas to alleviate the hardships faced by Nigerians. Notably, Nigeria is abundantly blessed with gas reserves, which are not only cleaner but also more cost-effective than petrol.
In a communiqué released after its 16th Annual International Conference held in Abuja, under the theme “Energy Evolution, Transition, and Reform: Prospects for African Economies,” the NAEE highlighted that the current heavy burden of subsidy removal on Nigerians could be eased through the rapid expansion of measures to accelerate the adoption of natural gas as a substitute for premium motor spirits (PMS).
To achieve this, the NAEE recommended promoting the activities of the Natural Gas Expansion Program, encouraging the conversion of engines to operate on compressed natural gas (CNG), and expediting the establishment of CNG stations nationwide. By pursuing these initiatives, the country can move towards a more sustainable and accessible energy landscape while benefiting its citizens.
“The present crushing effects of the removal of PMS subsidies need to be alleviated through measures such as mass transportation programs and others that are directly targeted at most of the affected Nigerians.
“The long-overdue rehabilitation of existing refineries remains a necessity, to promote diversification and guard against monopoly power, noted conference participants.
It stated: “In the light of decreased global funding for hydrocarbon activities worldwide, Africa needs to realize that funding for the development of its non-renewable energy resources needs to come from Africa. Therefore, participants welcomed the initiative between Africa Petroleum Producers Organization (APPO) and the Afrexim Bank to establish the African Energy Bank, which shall provide funds for oil, natural gas, and other energy projects, and NAEE looks forward to its imminent creation.
“The participants agreed that there is an urgent need to implement Nigeria’s chosen path for energy transition, particularly as domestic natural gas consumption expands and becomes an integral part of the energy mix in the transitioning path to Nigeria’s carbon-neutral future.
“Delays could negatively impact Nigeria’s economic development. Participants recognized that the Nigerian oil and gas sector had a pivotal role to play in achieving Nigeria’s Energy Transition Plan and that partnerships with the renewable energy sector to jointly drive implementation would help ensure its success.
“Participants acknowledged and emphasized the need for a functional electricity sector with sustainable, available, and affordable electricity supply, stressing that development and true industrialization without regular electricity is mirages.
“Political stability is essential, as are the continuity of government reform and development programs, which prioritize economic prosperity and the need for meaningful sustainable economic and national development.
“Participants hailed the passage and ongoing implementation of the Petroleum Industry Act, noting that the continuous growth, strengthening, enablement, and stability of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (the Authority) is vital to the growth of Nigeria’s energy sector.
“Nigeria needs to scale up the utilization of her substantial natural gas resources for the development of her people; therefore, participants recommended the speedy implementation of the provisions in the Petroleum Industry Act that establish the framework for natural gas utilization and, where needed, any amendments to the law that will create an attractive investment climate.
“The hopes of the rural energy poor lie in the use of off-grid renewable energy sources; therefore, NAEE lauds the initiatives of the Nigerian government to electrify communities outside the electricity grid network through the Rural Electrification Agency.
“NAEE recommends these and other similar initiatives as measures that will both alleviate the poverty of its citizens while counterbalancing any current and anticipated increased use of natural gas resources, hereby working towards the attainment of carbon neutrality and net zero.”
