Amidst calls from the West for the country to abandon fossil fuels for renewable energy, President Bola Tinubu has called for more investments for the exploration of the nation’s abundant fossil fuels to meet the energy demands and economic needs of its population.
President Tinubu made the call on Monday when he received the Group Chief Executive of Standard Chartered Bank, Mr. Bill Winters, at the Presidential Villa, Abuja.
In a statement by the Special Adviser to the President on Media and Publicity, Chief Ajuri Ngelale, Tinubu said, Nigeria remains committed to a balanced approach to energy transition and still requires substantial investments in the oil and gas sector to meet the nation’s energy demands.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country has a proven oil reserves of approximately 37.5 billion barrels, ranking as the second largest in Africa and the tenth largest in the world. Nigeria is also estimated to hold 209 Tscf of proven natural gas reserves, making it the eighth largest gas reserve holder in the world and the largest in Africa.
Currently, the country’s crude oil production hovers around 1.4mbpd with condensate, and 1.2mbpd without condensate.
Speaking at a meeting with Mr. Bill Winters, the President called for a just energy transition that supports vulnerable communities across the nation.
Highlighting the importance of balancing the mutually beneficial shift to green industrial growth and energy with the immediate energy needs of Nigerians, the President said: ”We value your cooperation, friendship, and partnership. Substantially, we have oil and gas as our primary source of revenue today. As friends, we do not expect you to run away from investments in this sector. We face the future prospect while prudently maximizing the present.
”Green industry and energy, yes. We will surely catch up with that. To run a marathon, you need energy today. Nigeria holds the largest reserves of gas in Africa. We know we can make best use of great opportunities that exist in the sector. We do not want you to back away from fossil fuels.
”I have seen retractions and retreat positions by some players in the industry. But for any energy transition to succeed, people must live and live well.
”We must be able to meet our obligations to the vulnerable communities. We are committed to being prudent with our natural resources to bring prosperity to our deserving people.
”As we hold the largest reserves in gas on the continent, we do not want to go backward, we want to move forward, and we welcome deepened partnership with your institution.”
President Tinubu also highlighted strategic projects across different sectors embarked upon by his administration to stimulate economic growth.
He reiterated his commitment to sustaining ongoing economic reforms and measures to stabilize the economy.
The Coordinating Minister of the Economy and Minister of Finance, Mr. Wale Edun described Standard Chartered Bank as a valued partner to Nigeria, providing finance for infrastructure, advice on ratings, and the prudent management of Nigeria’s Eurobond.
He disclosed that the Bank has indicated interest to finance key infrastructure projects in Nigeria, including the Lagos-Calabar coastal highway, Port Harcourt-Maiduguri rail line rehabilitation, as well as the provision of $3 billion in innovative financing for the NLNG dividend initiative.
”They are also one of our lead managers for Eurobond issuance, and they advise us on our ratings. I am pleased to note that Moody’s has just completed our rating review and maintained Nigeria’s rating as a positive outlook, which is very encouraging,” the Minister said.
The Minister also said Moody’s positive outlook rating follows the recent announcement of the World Bank’s $2.25 billion financing package for Nigeria, reflecting the positive trajectory of the current administration’s economic reforms.
In his remarks, Mr. Winters lauded President Tinubu’s bold economic reforms, noting the international investment community’s recognition and support.
”We see ourselves as ambassadors to Nigeria in the international investment community, and we take our advisory role very seriously. We will continue to offer objective advice to the country because we have commitments in the country backed by our strong belief in what this administration is doing,” he said.
The delegation from Standard Chartered Bank included Mr. Foluso Phillips, Chairman of Standard Chartered Bank Nigeria, and Mr. Dalu Ajene, the Chief Executive Officer of the Nigeria branch of the bank.
