Stakeholders chart course for Nigeria’s energy transition at NED ’25

 

 

By Obiabin Onukwugha

Stakeholders in the mineral and extractive industry have charted a course for Nigeria’s energy transition, calling for responsible and inclusive exploration of its solid minerals.

They warned that in exploring its solid minerals, Nigeria must not repeat the mistake of oil exploration.

The stakeholders made the submissions at the opening session of the 4th National Extractive Dialogue (NED 2025) organised by Spaces for Change (S4C), in partnership with the Nigeria Extractive Industries Transparency Initiative (NEITI), National Oil Spill Detection and Response Agency (NOSDRA), Ministry of Solid Minerals Development (MSMD) and supported by the Ford Foundation, with the theme” Transitions, Divestments, and Critical Minerals: Charting a Just Future for Nigeria’s Extractive Sector’, at the Ibom Hotel, Uyo, Akwa Ibom State on Wednesday.

In his address, the Director-General and Chief Executive Officer of the National Oil Spillage, Detection and Response Agency (NOSDRA), Engr. Chukwuemeka Woke, noted the significance of this year’s theme, observing that as the world shifts from low carbon energies, Nigeria stands at a critical crossroad.

Woke, who was represented by a director at the agency, …., expressed worry that the past five years have seen divestment by oil.companies amounting to $10billion without addressing the environmental issues of the Niger Delta region.

“Over the past five years alone we have witnessed unprecedented waves of divestments in onshore and shallow waters. Industry records show that over 25 divestment deals involving major international oil companies have been initiated and concluded since 2020–transferring oil blocs and infrastructure valued at over $10 billion. Notably Shell, Chevron, TotalEnergies, Exon Mobil–all opt to divest significant onshore and shallow water assets.

“Shell’s exit from its onshore assets alone involved over 30 oil mining leases affecting multiple communities across the Niger Delta. The acquisition of ExonMobil by Seplat–although still under regulatory review is among the most high profile divestment transactions in recent years.

“These divestments are driven by global decarbonization, investor demand, and operational insecurity in host communities. However, they also raise urgent environmental and governance questions,” he said.

He stated that NOSDRA, is faced with the challenge of increasing risk of stranded environmental liabilities. “Assets being divested often comes with a legacy of decade-long oil pollution, abandoned infrastructure and unremediated society. Notable among these are Ogoni, Bodo, and Bomu regions–where pollutions from historical operations continue to affect water, land and livelihood, despite reports to address them.

“Recently areas like Ebeocha in Rivers State and Ibono in Akwa Ibom, communities have raised alarm about environmental degradation caused by ongoing operations and neglect by exiting operators. This realities highlight the need for clear divestment protocol, environmental audit and enforceable co-exit obligations.”

The NOSDRA DG emphasised that as Nigeria prepares to exploit critical minerals such as lithium, cobalt, nickel, and rare earth metals it must avoid repeating the mistake of oil exploration.

“Furthermore, as Nigeria prepares to exploit critical minerals such as lithium, cobalt, nickel, and rare earth metals–we must avoid repeating this mistake–extractive expansion must be accompanied by strong environmental oversight, community engagement and transparent governance. Our mining future should not become a pollution crisis,” he said.

Woke informed that NOSDRA was intensifying efforts to make these evolving challenges to enhance satellite monitoring, improving spill detection systems, real time gas tracking and greater inter-agency collaboration, so as to improve accountability and rapid response.

“The dialogue provides a platform not only for reflection–but also for creating solution. A just future for Nigeria’s extractive sector must priorities people, protect the environment and be guided by data, equity and the rule of law,” Woke stated.

The Chairman, House of Representatives Committee on Solid Minerals, Jonathan Gaza, pointed out that the global transition to green energy has intensified the race for critical minerals like lithium, nikel, graphite and rare elements. He noted that these minerals are essential inputs in electric vehicles, and battery storage, amongst others.

Gaza stated that by the year 2040, demand for these minerals is projected to quadruple. “Countries like Australia and Chile have become major beneficiaries due to targeted policies supporting responsible extraction and downstream integration.

“In Africa, Namibia and the Democratic Republic of Congo are central area. Through the Presidential artisanal oil mining initiative and the formalization, Nigeria is building a foundation to integrate informal miners into the formal mining,” he said.

The House of Representatives Committee on Solid Minerals Chairman observed that absence of critical mineral policy, limited value addition, insufficient geological data, weak environmental and social governance frameworks, was posing a setback for Nigeria’s extractive industry. “Nigeria risks repeating oil sector mistakes with extraction without community development or remediation,” he stated..

Gaza called for critical legislation with regards to solid minerals development, saying this will define strategic minerals, mandate environmental social governance (ESG) compliance, enforce local content and enable integretional equity.

He also harped on the need for Nigeria to strengthen geological service and data transparency, expand agencies capacity and partner with global insituations to derisk exploration, integrate host communities in benefit sharing, amongst others.

“Nigeria cannot afford to be a bystander in the global clean energy revolution. We must be deliberate, not just in extracting critical minerals but in governing then with foresight, justice and national focus,” he added.

Earlier in her welcome address, the Executive Director, Spaces for Change and convener of the National Extractive Dialogue, Mrs. Victoria Ibezim-Ohaeri, mentioned that this year’s dialogue calls on stakeholders to reckon with the past, to confront the present and boldly shape a future grounded in equity, sustainability, and justice.

She said: “Across the globe the energy landscape is shifting–fossil fuel investment, are declining, oil majors are divesting very rapidly, new actors are emerging on the energy scene and the global race for minerals such as lithium, cubolt and rare earth mineral elements is accelerating.”