Stakeholders in Nigeria’s energy sector have said there is need to operationalise the Petroleum Industry Act (PIA) saying it includes provisions that facilitate the use of gas as a transition fuel and decarbonisation.
This and many more formed part of resolution at the National Dialogue on Energy Transition recently in Abuja.
According to a communiqué issues at the end of the national dialogue and signed by 35 state and non-state actors, and made available to the media, the Energy Transition Plan should be translated into an implementable action plan that is aligned with the National Development Plan and Medium-Term Expenditure Framework (MTEF).
They urged the federal government to be explicit on the delivery mechanism of the energy transition and how the green economy will translate to job creation for Nigerians.
Just as they insisted that the Energy Transition plan must be driven by a roadmap to define the modalities for funding and identify the risks and opportunities of the transition process.
“Fossil fuel-dependent economies, many of which are in Africa, stand to be significantly impacted by the global energy transition. For Nigeria, transitioning away from its current fossil-intensive energy system is necessary but requires an approach that speaks to its specific context and local priorities.
“As a country dependent on fossil fuel for 90% of its foreign exchange earnings and around 50 per cent of government revenues, a decline in fossil fuel consumption globally will be detrimental to the economy.
“This has negative implications for livelihoods, with women and other vulnerable groups bearing the brunt. Thus, now that the government has published Nigeria’s Energy Transition Plan, it is critical that the plan is responsive to the Nigerian context and the realities the Nigerian people face,” they explained.
The communiqué further stated that transparency, accountability, and stakeholder engagement should be mainstreamed into Nigeria’s energy transition agenda with a strong monitoring and evaluation framework.
To drive the energy transition plan, the group urged the government to pay greater attention to the solid mineral sector as it holds potential for the country’s energy transition plan due to availability of strategic energy minerals such as lithium, cobalt, etc., in Nigeria.
“A framework to resolve the legacy conflict issues around solid minerals, particularly in the North East should be adopted to ensure that the ramp-up of the energy transition does not create further social upheaval.
“The energy transition should avoid replicating the errors from the fossil fuel industry. Host communities and environmental concerns must be taken seriously and incorporated into the energy transition plan and implementation.
“A Just transition should ensure the remediation of the degraded environment by divesting companies such as oil spillage,” it said.
While calling for policy consistency as a means of attracting investment from key actors in the energy sector, the energy stakeholders insisted that an overhaul of Nigeria’s security architecture is necessary to create an enabling business environment and secure robust investment in the gas and other critical sectors in Nigeria.
“The government should provide an extensive plan/strategy on how the nation’s economy will be managed during the transition process in light of the projected diminished fossil fuel revenues as trade partners’ transition and companies divest.
“Financial instruments negotiated and accepted to fund the transition plan should align with Nigeria’s development goals and benefit future generations,” they added.
