Nigeria is set to adopt a new phase-down approach to transitioning to cleaner sources of energy, as opposed to its initial phase-out approach, Gbenga Komolafe, chief executive officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said.
Speaking through Bashir Indabawa, head, national data repository, NUPRC, at the Africa Economic Summit on Wednesday in Lagos, Komolafe stated that Nigeria was committed to achieving a low carbon footprint.
He further stated that the global energy transition was a reality that was affecting investments in the fossil fuel industries.
“Nigeria is fully committed to the Conference of Parties (COP 26) agreement, having pledged to achieve net-zero targets by the year 2060.
“However, the implementation process would have to align with our strategic national interest toward energy security and sustainability.
“In keeping with this commitment, we will be adopting the ‘phase-down’ as against the ‘phase-out’ approach in exploitation and utilisation of our endowed energy resources,” said Komolafe.
He added that the government had chosen gas as its transition fuel and was working to increase gas reserves, optimise gas production, increase domestic gas utilisation, and eliminate flaring.
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Similarly, Justice Derefaka, the technical adviser, gas business and policy implementation to the minister of state for petroleum resources, stated that the Petroleum Industry Act (PIA) was critical to the development of gas.
“The PIA had generous fiscal provisions aimed at attracting investment in gas exploitation and utilisation.
“Other policies aimed at deepening gas utilisation in Nigeria include the Decade of Gas initiative, the National Gas Expansion programme and the National Gas Flare Commercialisation programme,” he said.
In addition, Sharfuddeen Mahmoud, the general manager, market, competition, and rates division, Nigerian Electricity Regulatory Commission (NERC), stated that Nigeria suffers from chronic energy poverty.
He believed the problem was being addressed through the Federal Government’s gas-to-power initiative, with agreements being put in place to ensure a steady supply of gas to electricity generation companies.
He also mentioned that NERC was supporting renewables, which were being piloted by the Rural Electrification Agency in order to provide off-grid electricity to Nigerians.
