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The PIB fails to address the transition to clean energy.
- NNPC needs to position itself to help drive the clean energy transition.
Experts believe that Nigeria’s Petroleum Industry Bill needs to provide a gradual transition to renewable energy. The expectation is that the Nigerian National Petroleum Corporation (NNPC) has to play a critical role in accelerating the renewable energy transition.
Read also: NNPC to Boost Electricity with Additional 5,000MW.
The IEA has stated that to achieve net-zero by 2050, exploration for hydrocarbons need to be stopped immediately. However, the NNPC is currently seeking to expand the country’s oil reserves by 3 billion barrels as it has commenced exploration activities in the Lake Chad and the Bida/Sokoto Basins.
Analysts at PwC Nigeria United that although clean energy has become increasingly popular, challenges with the infrastructure will gradually transition from fossil fuels. The projected increase in the global population will also contribute to the continued global fossil fuel demand.
The analysts decried that the PIB which aims to address critical issues in Nigeria’s energy industry, does not provide a clear path for the transition to renewable energy, especially as major energy companies have detailed energy transition plans and targets.
As Nigeria’s foremost energy company, the NNPC needs to position itself for the future and create an enabling environment for a private sector-led clean energy transition.