The Nigeria Extractive Industries Transparency Initiative (NEITI) has outlined key conditions to be considered for meaningful constructive dialogue on Energy Transition.
NEITI’s Deputy Director/Head Communications & Stakeholders’ Management, Mrs Obiageli Onuorah made this known in a statement on Tuesday.
She said, the Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji outlined these conditions while speaking as a special guest at the 2nd German-Nigeria Symposium on Green Hydrogen held in Abuja.
Dr. Orji explained that with the United Nations’ projection of Nigeria’s population to rise to over 260million in 2030 and over 400million in the year 2050, there is an urgent need for deliberate investments in technology, innovation, exploration, production, and commercialization of gas for Nigeria to meet the net zero target set at the year 2060.
“Nigeria has identified natural gas as its transition fuel. At over 200 trillion cubic feet, Nigeria has the largest gas reserves in Africa and 9th largest in the world.
And with increasing new gas discoveries on the way from ongoing frontier explorations across the country, NEITI believes that gas will play a very important role in the energy transition discus. As you know, gas has the potential to produce blue hydrogen, which, though not as clean as green hydrogen, would be useful in our journey towards cleaner energy sources”. Dr Orji remarked.
The NEITI Executive Secretary expressed concern that at a time, gas is fast surpassing crude oil in revenue generation for resource-rich countries, the rate of gas flaring with huge negative consequences on environmental pollution is on the increase in Nigeria.
He cited NEITI’s recent oil and gas report which disclosed unremitted revenues of over & $8.2 billion which arose from liabilities of government agencies and oil/gas companies.
A breakdown of the unremitted payments in the report showed outstanding gas royalty payments of $ 559.8 million and another unremitted sum of $828.8 million from unpaid gas flare penalties confirming that more gas was flared in the country during the period than utilized.
The situation Dr Orji lamented is posing serious dangers to the global zero emissions agenda apart from huge revenue loss to the country.
The NEITI Executive Secretary explained that the upsurge in gas flaring and its consequent revenue loss to the country informed NEITI’s interest to support and encourage Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to fast-track the Commission’s ongoing gas utilization and commercialization project.
On commitments to achieving a net zero emission by 2060, Dr. Orji advised that the Country’s net zero pledge should include policies that will help control greenhouse gases produced in Nigeria, major reforms in energy production and utilization, concerns for energy security, jobs, livelihoods, the economy, and robust citizen’s engagement, as well as deliberate investments in the expansion of gas infrastructure.
He reaffirmed NEITI’s commitment to supporting the country’s transition programme with crucial facts, reliable information, and data to guide its successful implementation and commended the objectives of the Symposium.
The German Ambassador to Nigeria, Mrs Annett Gunther explained that the Symposium was convened by Germany as a product of discussions with the Nigerian government by the German Chancellor, Olaf Scholz when he visited Nigeria recently as part of her country’s commitment to support Nigeria’s carbon emission reduction and diversification of her energy resources.
Also at the Symposium, the Minister of State for Environment, Dr Iziaq Kunle Salako welcomed the expansion of Nigerian-German Cooperation in the areas of energy security, diversification, and environmental safety and pledged the Country’s readiness to build on the opportunities that the German Nigeria Symposium on Green Hydrogen will provide.
The Minister urged the Conference to come up with far-reaching recommendations that will help shape Nigeria’s Energy Transition agenda.
