Limited international financing of oil and gas challenges  energy transition in Nigeria – Minister 

By Nneka Nwogwugwu 

The Minister of State for Petroleum Resources, Timipre Sylva has noted that limited international financing of oil and gas projects could jeopardise Africa’s energy transition and roadmap to attaining net-zero by 2050.

Sylva made this observation at the just concluded Society of Petroleum Engineers (SPE) conference in Lagos.

He emphasised the need for Africa to develop cross-border infrastructure and expand the regional energy market to guarantee long-term energy security.

He also noted that Africa’s approach towards the climate-change-net-zero-emission should be to optimise the use of our abundant gas resource as a transition fuel option. 

He added that Nigeria is committed to pursuing the energy transition to promote economic growth, and is gradually investing in renewable energies, primarily solar, to reduce carbon emissions, whilst continuing to exploit hydrocarbon resources, especially natural gas recognised as the energy transition fuel for Nigeria.

He also noted that the Petroleum Industry Act 2021 in full implementation across the broad spectrum of the oil and gas industry, will position Nigeria for a reformed oil and gas industry that could sustain the local demand for natural gas and a high export income.

He recommended that for Africa, adaptive strategies for the energy transition should be adopted across the continent.

Also speaking, the Group Chief Executive Officer, Nigerian National Petroleum Company Limited, Mele Kyari, said before the current war between Ukraine and Russia, there were indications of short supply gaps in the world market.

However, he assured that with the launching of the new NNPC, the NNPC will be leveraging the opportunities in the sector to deliver value to Nigerians.

He said his administration would aggressively back the development of gas infrastructure and energy development.