With the global energy transition chants reaching a crescendo, the Minister of State, Petroleum Resources, Chief Timipre Sylva, has said that an annual investment of around $25billion in the next eight years could help 2.6billion people globally access clean cooking by 2030.
He also canvassed for $25billion annual investments for electricity so that 759million Africans who currently lack it can enjoy it.
The minister said these at the annual Symposium and Exhibition of the Society of Petroleum Engineers (SPE) in Lagos.
However, the minister stressed that with “approximately 208.62trillion cubic feet (TCF) of proven gas valued at over $803.9trillion and potential upside of 600TCF of gas, the most extensive in Africa, and in the top 10 globally.
“And in line with Federal Government’s declaration of years 2021-2030 as the ‘Decade of Gas’, we are taking steps to expand and develop the nation’s huge gas resources through enhanced gas exploration, development and utilisation schemes which will lead to gas reserves growth, increased gas production, maturation of the domestic and export gas market, as well as gas flare elimination,” he said.
His suggestions drew inspiration from the United Nations Commission for Africa’s (UNECA) report, which highlighted that Africa needs about $40billion worth of investments every year if it is to meet its energy needs.
The minister, while making reference to the United Nations’ Department of Economic and Social Affairs report, noted that everyone in the world could have access to clean, affordable energy within the next nine to 10 years if countries modestly increase investments in the energy sector.
He said: “A major question that is yet to be answered is whether Africa will benefit from an equitable share in this global investment and growth or, will continue to fall further behind global standards as encapsulated in the UN’s 17-SDGs.
“Despite the long-term and required drop in demand for fossil fuels, short-term demand and prices remain robust, providing strong commercial justification for their extraction and a need to smooth the transition”.
Sylva added that the required investment represents only a small fraction of the multi-trillion-dollar global energy investment needed overall.
He noted that despite contributing less than 6percent of world energy consumption and 2percent of total global emissions, there is a need for the continent to shift to cleaner energy use.
With significantly untapped fossil fuel reserves, which could provide much-needed foreign direct investment and export revenue, Sylva said Africa has the ability to play a leading role and should play a leading role in the transition to a net-zero energy future.
According to him, the continent’s enormous resources can be harnessed using clean energy technologies.
Describing the PIA as a game changer, Sylva said the legislation would help support the continent to alleviate energy poverty.
He said: “The PIA has generous incentives to enable development, distribution, penetration, and utilisation of gas even as it incentivises entry into the midstream, especially for pipelines with an additional five-year tax holiday for investment in gas pipelines.
“The PIA is a supply-side enabler, capable of provoking and triggering commercial interests and investments in gas utilisation as well as treating gas as a stand-alone commodity.
“As a nation, we are following a transition pathway that combines technology, investment, business strategies, and government policy that will enable Nigeria to transition from its current energy system to a low-carbon energy system with natural gas playing a pivotal role over the next generation, roughly between now and 2060.
“Natural gas is a key resource for a just energy transition and has all the credentials to support Nigeria, and indeed, Africa meet up with her commitment with the UN 17 Sustainable Development Goals (SDGs).
“As a major source of wealth and energy in Africa, the development of oil and gas resources proves critical for oureconomic growth and revenue expansion,” he added.
The minister insisted that there must be multiple pathways to the energy transition in order to ensure that no country is left behind in the process of achieving net-zero by 2060.
“As a continent, we need to beintentional and recognize the need to develop hydrocarbon resources in environmentally and socially responsible ways.
“And as alluded to by the AfricanUnion, we need to be realistic in choosing the energy transition pathways which addresses our unique requirements and circumstances. As well as enhancing policy, legislation and implementation approaches across national, regional, and continental level, to enable a favourable environment for development.
“We need to develop bankable projects to scale up access to funding and investment. And adopt a mix of energy solutions to address the needs of each country, including solutions to high tariffs and accessibility to sustainable energy options.
“We need to promote energy efficiency which is necessary for energy transition and focus on building energy infrastructure and strengthening transmission corridors,” Sylva said.