Energy Experts: Achieving Net Zero Emissions by 2060 in Nigeria Requires N2trn

Over the weekend, energy specialists emphasized that the successful implementation of a Net Zero Emissions plan within Nigeria’s Energy Transition Plan (ETP) would require a substantial investment of at least N1.9 trillion. These remarks were made during the 85th Power Dialogue event hosted by The Electricity Hub (TEH) in Abuja. The event’s themes revolved around analyzing the Nigerian Energy Transition Plan and exploring the reforms and execution of Nigeria’s energy transition strategy.

The experts underscored the necessity of developing a feasible roadmap for the ETP, particularly given the challenges linked to financing gas initiatives as part of the plan. As per the discussions, it was projected that by 2040, Nigeria’s gas utilization pattern would witness a significant shift towards the domestic sector, while the global market’s prominence wanes. The panelists acknowledged gas’s role as a transitional fuel due to its abundant availability. Presently, around 14% of Nigeria’s liquefied natural gas (LNG) is exported to the European Union, the dialogue noted.

TEH issued a statement subsequent to the session, highlighting a significant hurdle in the country’s gas development—the pricing of natural gas within the domestic economy. Notably, gas allocated to the power sector is traded at deregulated rates unless specific buyers or sellers emerge, often resulting in underutilization of its benefits.

The panel consisted of distinguished energy specialists in the sector. Zira John Quaghe, Nigeria’s Focal Person at The African Climate Foundation; Jennifer Ifeanyi-Okoro, Vice President of Public Policy at Sun King; Charles Majomi, Partner specializing in Gas and Energy Transition at The Nextier Group; and Chibuikem Agbaegbu, Program Manager at Nigeria Off-Grid Market Accelerator, moderated by Jennifer Ifeanyi-Okoro.

Jennifer Ifeanyi-Okoro emphasized the importance of affordability in connecting with a wide audience as part of the energy transition strategy. She referred to Sun King’s accomplishments as an off-grid solar company and stressed the need for approximately N1.9 trillion to achieve Net Zero by 2060. She underscored the challenge of extreme poverty, asserting that addressing basic needs like housing, clean water, energy, food, and education is essential for a sustainable future.

Zira John Quaghe addressed climate goals and the energy transition’s alignment with them. He highlighted factors driving the energy transition plan and discussed accountability mechanisms. He mentioned five countries actively working toward Net Zero and noted Nigeria’s absence from that list. He also explored climate finance strategies from a philanthropic perspective, detailing how philanthropy could aid in aligning budgets and physical planning while enhancing the quality of Nigeria’s climate change discourse.

Charles Majomi drew attention to the perception of gas value addition in Nigeria, emphasizing its potential to improve socio-economic well-being. He lamented missed opportunities to capitalize on gas as a primary resource, emphasizing the core objective of transitioning away from polluting fuels. He reaffirmed that gas would continue to be a valuable export resource.

The experts collectively concluded that energy transition is a gradual and deliberate endeavor that requires ongoing improvement and sustainability. Despite Nigeria’s abundant resources, successful transition to Net Zero hinges on the right policies, plans, and strategies complemented by effective regulations. Failing this, the country could remain trapped in a cycle of carbon emissions.

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