Nigeria to Fund Energy Transition with Revenue from Fossil Fuels

  • Lokpobiri emphasised the importance of financial independence in the transition programme and called for investment and partnerships rather than deadlines.
  • The minister made a compelling case for the symbiotic relationship between fossil fuels and renewable energy.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has said that despite calls to jettison investment in fossil fuels, Nigeria will deploy the revenues from exploiting its hydrocarbons to fund its $1.9 trillion energy transition plan. According to a statement by his Special Adviser on Media and Communication, Nneamaka Okafor, Lokpobiri made this known at the 54th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland. He emphasised Africa’s measured stance on the global transition from fossil fuels to renewable energy.

At COP26, then-President Muhammadu Buhari announced Nigeria’s commitment to carbon neutrality by 2060. The government said $1.9 trillion would be required to get to Net Zero by 2060, including $410 billion in projected usual spending. According to the energy transition office, the additional cost is about $10 billion annually. Lokpobiri highlighted that Africa’s contributions to global emissions stand at a modest three per cent, urging against precipitous actions that could impede the continent’s economic growth.

Lokpobiri emphasised the importance of financial independence in the transition programme and called for investment and partnerships rather than deadlines. “Africa, including Nigeria, cannot hastily transition with aid or grants. What we need is a strategic investment in our fossil fuels sector to bolster our economy and ensure energy security. The conversation should be about fostering strategic partnerships and attracting investment, not enforcing timelines that could undermine our economic stability,” he added.

However, he stressed Nigeria’s commitment to responsible exploration and balancing economic growth with environmental responsibility. According to the statement, the minister made a compelling case for the symbiotic relationship between fossil fuels and renewable energy, emphasising the need for a balanced approach that fosters economic growth and ensures environmental sustainability.

Leave a Reply

Your email address will not be published. Required fields are marked *