Following International Oil Companies’ (IOCs) withdrawal from investment in the oil and gas industry, the African Export Import Bank (Afrexim) and the African Petroleum Producers Organisation (APPO) have resolved to set up an Africa Energy Bank.

The intention, according to the Nigerian Upstream Petroleum Regulatory Commission (NURPC) Chief Executive Officer (CEO), Mr. Gbenga Komolafe, is to provide funding for oil and gas projects in the continent.

He spoke at the maiden PENGASSAN Annual Conference in Abuja.

The theme of the summit is: “Energy Transition and its Effects on the Nigerian Workforce.”

He said: “To this end, the Africa Export Import bank (Afrexim) and Africa Petroleum Producers Organisation (APPO) have decided to set up an Africa Energy Bank to provide capital for oil and gas projects in Africa.”

Komolafe, who noted that consequent upon the energy transition call from the global energy super power, Nigeria has adopted gas as its transition fuel, insisted that the country must fashion local innovative financing solutions to develop the gas resources since the rate of investment has declined.

“We must begin to develop local innovative financing solutions to develop our huge gas resources as the number of international traditional investors have dropped drastically,” he said.

The CEO told the conference that the energy transition will certainly affect oil and gas workers’ jobs, insisting they must “up-skill” to fit into the future workforce.

He explained that another critical enabler that could affect the workforce during this time of energy transition phase is Just Transition.

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Komolafe said the “just transition” philosophy ensures environmental sustainability as well as decent work, social inclusion, and poverty eradication.

Given that Nigeria has a high poverty rate, said the CEO, the importance of just transition principles cannot be overemphasized.

He noted that the Host Communities Development Trust (HCDT) and the Local Content Act have the potential to guarantee longevity of the oil and gas industry during these changing times.

“To stay competitive and relevant the Nigerian worker will have to up-skill in this regard,” he said.

Komolafe explained that as Nigeria and other African economies look to industrialize to meet the needs of rapidly growing and urbanizing populations, a rise in energy demand could leave many countries facing energy supply challenges.

He revealed that hidden in the challenges that have been highlighted through the course of this address, are significant opportunities.

Nigeria, according to him, has the chance to leverage the energy transition to lead in the creation of renewable-energy businesses that will help to meet the growing energy demand on the continent and create new revenue streams and jobs.

He was certain that fundamentally, it is important to note that within the next few years most IOCs shall divest from onshore oil and gas assets due to poor return on investment as a result of crude oil theft and this may pose threat to job security.

He added “However, it is expected that indigenous players would leverage on this to recruit experienced professionals who will in turn grow local capacity, in addition indigenous players are urged to take advantage of the predictable licencing rounds as enshrined in the PIA and relevant regulations to form big mega companies that will grow in-Country capacity and also expand outside the shores of Nigeria.”

He said energy transition is valid, however the timing is uncertain.

He repeated the fact that energy transition may threaten job security and stifle investment in the Nige