- Dr Orji Ogbonnaya Orji from NEITI highlighted the need for $20 billion annually over the next decade to develop gas infrastructure as Nigeria transitions from oil and gas dependency.
- The ambassadors from Belgium, Australia, and Canada pledged support for NEITI’s efforts to address investment gaps and promote transparency in Nigeria’s extractive industries.
Dr Orji Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), has highlighted the substantial investments needed for Nigeria to meet its energy transition goals.
Speaking in Abuja on Wednesday, August 21, during a meeting with the Ambassador of Belgium, Mr Pieter Leenknegt, the High Commissioner of Australia, Ms Leilani Bin-Juda, and the High Commissioner of Canada, Mr Jamie Christoff, Dr Orji emphasized the urgency of addressing Nigeria’s reliance on oil and gas.
Dr Orji stressed that Nigeria’s heavy dependence on hydrocarbon resources necessitates a clear strategy for handling its significant oil and gas deposits as the country moves toward an energy transition. He outlined that to develop the necessary gas infrastructure, the Federal Government’s decision to use natural gas as a transition fuel would require an estimated $20 billion annually over the next decade.
Dr Orji also highlighted the broader economic implications of transitioning from carbon-based fuels. With Nigeria and other developing countries facing potential economic threats from a global decline in crude oil demand, the country’s economy is at risk due to its current reliance on oil and gas. He noted that the fiscal challenges Nigeria has faced from short-term disruptions in oil and gas production could be exacerbated by a permanent decline in demand.
In 2021, crude oil and gas accounted for 46% of Nigeria’s energy use and 78% of its electricity generation. Dr Orji emphasised that transitioning from these carbon-based fuels will significantly impact Nigeria’s revenue and exports. To mitigate these effects, he stressed the need for considerable financial investment to develop renewable energy sources that can replace the energy previously generated from fossil fuels.
Dr Orji urged the visiting diplomats to consider investing in areas that address the current gaps in Nigeria’s energy sector. He acknowledged the challenges and risks associated with transitioning from fossil fuels and highlighted the opportunities within the extractive industries’ transparency initiative and its global network for finding solutions.
In response, the ambassadors pledged their support to NEITI and the broader stakeholder community in Nigeria. They were committed to promoting transparency and collaboration in the extractive industries, which are crucial for achieving the country’s energy transition and addressing its investment needs.