Energy transition is an enabler of sustainable development and climate resilience. Stakeholders in the sector are convinced that forward-looking actions in this direction would create new jobs, stimulate growth and harvest social and health benefits. But how this is achieved is dependent on transparency and accountability by the government and stakeholders. AMBROSE NNAJI writes.
Energy transition involves shifting from a system based on fossil fuels (oil, gas and coal) to one dominated by clean, renewable electricity. Its aim is to reduce energy-related carbon dioxide (CO2) emissions to help meet global climate targets.
This is why experts and other stakeholders at the recently-concluded Strategic International Conference, organised by the Association of Energy Correspondents of Nigeria (NAEC), in Lagos, advocated that the country must be ready to mainstream transparency and accountability mechanisms into her energy transition plan to avoid the pitfalls of her energy circumstances.
The conference had as its theme: “Energy Transition, Shaping the Future of Nigeria’s Energy Industry: An Appraisal of the Petroleum Industry Act, Evolving Benefits and Challenges.”
Speaking on a sub-theme “Transparency and Accountability, Key to Sustainable Energy Sector: The Role of Nigeria Extractive Industries Transparency Initiative (NEITI),” the Executive Secretary, NEITI, Orji Ogbonnaya Orji, noted that as the world moves from fossil fuel to cleaner and sustainable energy, transparency and accountability would be central to efforts towards supporting the transition process. This, he said, would include the reporting of emissions, the disclosure of climate risks and the governance of the future energy industry.
Agreeing that NEITI has a major role to play in a sustainable energy sector for the country, he said the agency was working with its partners to help stakeholders gain full insights and deepen public knowledge on the risks and opportunities associated with the transition within the country’s national context through timely disclosures and dissemination of extractive industries’ data and information.
The agency, he further said, considering the multi-sectoral nature of the energy transition, is galvanising the needed inter-agency cooperation and national consensus for a sustainable energy sector.
Represented by the Assistant Director, Communications & Advocacy, NEITI, Mrs. Obiageli Onuorah, Orji said NEITI through the Extractive Industries Transparency Initiative (EITI) had engaged a consultant to advise it on energy transition.
“With the Natural Resources Governance Institute, our global affiliate -the EITI and BudgIt, we are planning a National Dialogue on Energy Transition in October,” he said.
He added that the dialogue would bring together experts to brainstorm on Nigeria’s contextual reality as it concerns its transition to a low carbon, cleaner and renewable energy future.
“The belief is that unimpeded access to timely information and data about the country’s oil, gas and mining sectors by the citizens, media and other accountability actors will promote public debate on the management of the sector, foster civic actions, accountability and ultimately sustainability in the sector,” Orji noted.
He said the agency was also supporting the government’s drive to increase revenues through reconciliations of operators’ data in the extractive sector, push for renewal of obsolete memorandum of understanding (MoUs) and fiscal regime of the sector and other policy advisory roles to the government.
Yet, the Chairman/Managing Director, Chevron Nigeria Limited, Mr. Rick Kennedy, agreed that a good regulatory framework was key to expanding the fortunes of the oil and gas industry while enabling the transition to energy solutions of the future.
Kennedy, who was represented by the Manager, Communications, Victor Anyaegbudike, said for Nigeria to sustain growth which had raised the quality of life for millions of people around the world, a competitive environment to produce affordable, reliable and cleaner energy to enable human progress was needed.
He noted that the global energy landscape had experienced substantial changes over the years, with expectations of more changes in the future.
But, nonetheless, Nigeria is endowed with the requirements for a growing and sustainable energy industry, which includes large hydrocarbon reserves (including abundant gas resources), a growing demand for energy, and a large population of young, talented human resources.
He said: ‘’The passage and signing into law of the Petroleum Industry Act (PIA) is a major milestone in the reform of Nigeria’s oil and gas industry geared towards attracting investment and growth.
“Chevron recognises the opportunity which the PIA represents and we fully support the necessary collaboration between the regulators, the Nigerian National Petroleum Company Limited and stakeholders in the industry that will enable the success of the Nigerian oil and gas industry. As we advance in the PIA implementation, we believe that natural gas is an important fuel, which will play a critical role as the world seeks to lower its overall carbon footprint. Recently, Nigeria launched its ‘Decade of Gas’ initiative, under the theme ‘Towards a gas-powered economy by 2030,’ that will work with the National Gas Expansion Programme in increasing gas production.
He said CNL supports this key step towards helping to utilise the country’s vast natural gas resources for the benefit of the nation.
For instance, the firm in aligning with the new global energy direction, has been able to reduce routine gas flaring by 95 per cent in the past 10 years. He assured that CNL will continue to enhance gas utilisation in Nigeria with focus on critical areas such as: Power generation to stimulate the growth of the manufacturing sector of the economy – signing of Gas Sale and Aggregation Agreements (GSAA) with Egbin Power Plc and Olorunsogo Generation Company Limited, Fertilisers for local consumption to support large scale agriculture for export and local consumption – signing of a GSAA with Dangote Fertiliser Limited. The Chief Executive Officer, Heritage Energy Operational Services Limited (HEOSL), Ado Oseragbaje, called on stakeholders to rise to the challenges of multiple transitions in the domestic industry.
He reiterated that as the world seeks to transition to net zero emission in 2050, the energy industry should continue to engage to identify its place in the global scheme of things because the conversation of energy transition has many faces. “Transitioning from one form of energy to a cleaner form, transition from one form of industry governance to another, transitioning from one fiscal regime to another as well as the key issue of transitioning from one form of stakeholder engagement paradigm to another as represented by the statutory provisions of the Petroleum Industry Act of 2021” require concerted response from stakeholders,” he added.