The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says the country is adopting a phase-down approach to transit to cleaner sources of energy.
The News Agency of Nigeria (NAN) reports that the Commission Chief Executive, NUPRC, Gbenga Komolafe said this yesterday at the Africa Economic Summit, in Lagos.
Komolafe, represented by the Head, National Data Repository, NUPRC, Bashir Indabawa, said Nigeria is committed to achieving a low carbon footprint.
He admitted that the global energy transition was a reality, adding that it was affecting investments in the fossil fuel industry.
He said: “Nigeria is fully committed to the COP 26 agreement, having pledged to achieve net-zero targets by the year 2060. However, the implementation process would have to align with our strategic national interest toward energy security and sustainability.
“In keeping with this commitment, we will be adopting the ‘phase-down’ as against the ‘phase-out’ approach in exploitation and utilisation of our endowed energy resources.”
Komolafe said the government has adopted gas as its transition fuel, and was working toward reserves growth, optimising production, increasing domestic utilisation as well as flare elimination.
Technical Adviser, Gas Business and Policy Implementation to the Minister of State for Petroleum Resources, Justice Derefaka, said the Petroleum Industry Act (PIA) is critical to gas development with generous fiscal provisions aimed at attracting investment in gas exploitation and utilisation.
He listed other policies aimed at deepening gas utilisation in Nigeria to include the Decade of Gas initiative, the National Gas Expansion Programme, and the National Gas Flare Commercialisation Programme.
The General Manager, Market, Competition and Rates Division, Nigerian Electricity Regulatory Commission (NERC), Sharfuddeen Mahmoud, cited chronic energy poverty in Nigeria.
Nigeria is fully committed to the COP 26 agreement, having pledged to achieve net-zero targets by the year 2060. However, the implementation process would have to align with our strategic national interest toward energy security and sustainability.
Mahmoud said the problem is being addressed through the gas-to-power initiative of the Federal Government with agreements being put in place to ensure stable supply of gas to electricity generation companies.
He said NERC is also giving support to renewables, being piloted by the Rural Electrification Agency (REA), to provide off-grid electricity for Nigerians.
Similarly, the Chief Executive Officer, Axxella Group, Bolaji Osunsanya, noted that the creation of gas-based industrial clusters across Africa would boost the continent’s economy.
Osunsanya, represented by the Chief Strategy Officer, Axxella Group, Fisayo Duduyemi, said the company has been making massive investments to bring gas closer to industries in Nigeria.
Speaking earlier, the Founder, Africa Economic Summit, Brian Reuben, said the conference aimed to proffer solutions to the economic problems affecting the continent.
Reuben said despite its huge potential and vast natural resources; Africa was still lagging behind in terms of human capital development, and stressed the need for countries to increase collaboration.