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Tag: Olu Verheijen

  • Africa not net contributor to global emissions, says Veheijen

    Africa not net contributor to global emissions, says Veheijen

    The Federal Government has reaffirmed its commitment to creating an enabling environment for hydrocarbon investments to address energy poverty, emphasising that Africa is not a net contributor to global emissions.

    Special Adviser to President Bola Ahmed Tinubu on Energy, Olu Verheijen, spoke on Tuesday during a session at CERAWeek by S&P Global, with the theme: “Policy and people: pathways to a just transition.”

    The session, chaired by the Head of Market Report & Trading Solutions at S&P Global, Vera Blei, featured the CEO of Tinker Energy Association, Scott Tinker, and the Director-General of the Centre for Science and Environment, Sunita Narain.

    Nigeria, along with other African and middle-income countries, continues to advocate for a just energy transition amid the global push for net-zero emissions.

    Under its “Decade of Gas” initiative, the Nigerian government has adopted natural gas as a transition fuel to support economic growth while reducing carbon emissions.

    Verheijen highlighted that Africa and other low-income countries contribute only about 3–4 per cent of global greenhouse gas emissions, in contrast to China and the United States, which account for approximately 30 per cent and 13 per cent of global CO₂ emissions.

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    Together, both countries are responsible for nearly 40 per cent of global emissions.

    She stressed Nigeria’s commitment to fostering a stable investment climate and addressing climate-related risks through clear and transparent policies.

    “In Nigeria, we are ensuring that we create an enabling environment for investments.

    “On climate change, we recognise the importance of risk perception in our markets and are committed to transparent policies that stand the test of time, enabling the deployment of capital,” she stated.

    She also underscored the need for greater regional integration to attract capital and enhance market efficiency.

    “By pooling resources, integrating markets, and leveraging collaboration across the continent and regional blocs, we can drive sustainable development,” she added.

    Verheijen highlighted the importance of better data collection and analysis in Africa to support informed decision-making and policy development.

    “Even if Africa experiences exponential economic growth and reaches middle-income status, the continent will still not be a major contributor to global emissions.

    “The bulk of emission reductions will have to come from developed nations, which must diversify their energy sources and invest heavily in carbon removal and reduction technologies,” she explained.

    She further noted that a balanced approach is necessary to ensure that developing economies can utilise their natural resources to drive prosperity, while also adopting climate solutions that enhance adaptability and sustainability.

    Through strategic investments and policy reforms, Nigeria and the broader African continent aim to bridge energy poverty, attract investment, and contribute to a more sustainable global energy transition.

  • FG spends N200b on electricity subsidy monthly – Olu Verheijen

    FG spends N200b on electricity subsidy monthly – Olu Verheijen

    Olu Verheijen, the president’s special adviser on energy, has said the federal government currently spends N200 billion on electricity subsidies monthly.

    ” Today, the Federal government spends over ₦200 billion per month on electricity subsidies, but much of this support benefits the wealthiest 25 percent of Nigerians rather than those who truly need assistance,” she said.

     She also explained how the federal government is subsidising electricity in 2025.

    In a press statement she shared on her X handle on Monday, she said clarifying media reports suggesting an imminent 65 percent increase in electricity tariffs has become necessary.

    According to her, it is a misrepresentation of what I said in a recent press interview. I highlighted that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 percent of the actual cost of supplying electricity, with the Federal government continuing to subsidize the difference.

     The special adviser said also, that while the government is indeed committed to ensuring fairer pricing over the long term, the immediate focus is on taking decisive action to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.

    In line with these, the federal government’s power sector priorities include the Presidential Metering Initiative (PMI). One of the most significant steps in this reform is the Presidential Metering Initiative, which will accelerate the nationwide rollout of 7 million prepaid meters starting this year.

    She continued: “This will finally end the practice of estimated billing, giving consumers confidence in what they are paying for and ensuring transparency in electricity charges.

    “Metering will also improve revenue collection across the sector and attract the investments needed to strengthen Nigeria’s power infrastructure. Targeted Electricity Subsidies:

    “To address this, the Federal government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families. Settlement of Legacy Power Debt: Furthermore, the Federal government is addressing one of the major roadblocks to improved service, the mounting debts owed to power generation companies. For years, these debts have prevented investments in new infrastructure and hampered efforts to improve electricity supply.

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    “By clearing these outstanding obligations, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians. Reducing Costs for Alternative Power Generation: Through a range of fiscal incentives, including VAT and Customs Duty Waivers, the Federal Government is working to lower the cost of alternative power sources such as Compressed Natural Gas and liquid petroleum Gas.

    “The government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s daily lives. Every policy is designed with the Nigerian people in mind — eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity.

    “These reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians.”   

  • ‘Over $1b unlocked in energy sector’

    ‘Over $1b unlocked in energy sector’

    The Special Adviser to the President on Energy, Olu Verheijen, has disclosed that the President Bola Tinubu administration has unlocked over $1 billion in investments across the energy value chain and by the middle of 2025 will see the foreign direct investment (FDI) on two more projects, including a multibillion billion-dollar deepwater exploration project, which will be the first of its kind in Nigeria in over a decade.

    These, and several others, she said, are testimonies to the enabling environment being created for investment in the energy sector of the country, which are part of the various reforms of the Federal Government in the sector which are now making the industry an investment haven for discerning international investors.

    “We see the abundant opportunities that lie ahead. We see a Nigeria that is a leading global producer and exporter of energy – whether its fossil fuels or renewables. We are not held back by the outdated approaches and assumptions of the past. We are open, daring, and eager to leave a legacy that will stand the test of time,” she said.

    Verheijen, who spoke on “The Future of Energy: Shaping the Workforce of Tomorrow” at the recently concluded African Energy Week (AEW), which held in Cape Town, South Africa, said the Petroleum Industry Act (PIA) 2021, is now being consolidated with urgency to completely rewrite the narrative of oil and gas investment in the country.

    According to her, regulatory frameworks such as the outlining of a fiscal framework for deepwater gas since basin exploration commenced in 1991, amongst others, have buoyed the sector, making it attractive, while other regulatory approvals are being expedited, and major upstream investment decisions are being finalised.

    “We clarified the regulatory roles to create an enabling environment for investments; introduced reforms targeted at reducing high operational costs and project execution timelines; introduced a clear set of fiscal incentives for Non-Associated Gas and Deep offshore Oil & Gas gas exploration and production, including  the outlining of a fiscal framework for deepwater gas since basin exploration commenced in 1991, all in the first 12 months of our coming on board,” she revealed, adding that “we are already seeing the fruit of our work.”

    Verheijen, who charged Africans on the need for sustainable energy security and affordability, said stakeholders in the energy sector across Africa have the task to determine the outcome of the delicate balance between energy security, affordability and sustainability for the continent.

     “There is no doubt that the future we are moving into will be very different from where we are coming and what we are used to. It will take incredible amounts of human energy and a diversity of talent and expertise to enable us adapt to these rapidly evolving and often unpredictable scenarios and circumstances,” she noted.

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    According to her, one of the most important ways in which the future of African energy workforce can be shaped is to look beyond the traditional places and welcome a new crop of talent, especially women and young people, who possess a global perspective and reach and understand the context of the 21st century. Africa, she insisted, is equipped with the fresh perspectives and bold energy to design and implement radical new solutions to lingering problems.

    “I hope that in every country across Africa, these stories will be replicated, and the gender gaps that have come to define our landscape will be aggressively narrowed and closed. There is no doubt that the continent will be the better for it. Bringing the perspectives, capacity and the energy of its women, who make up half of the population, into the mix, is a requirement for building the Africa of our dreams,” she submitted.