Why Nigeria Must Maximize Its Petroleum Resources In Short Term – VP Shettima
BY NGOZI NWANKWO, ABUJA – Vice President Kashim Shettima has said that Nigeria must maximize its petroleum resources in the short term to provide the base load energy that would turbocharge the economy.
This was as he said that the Federal Government is pushing strongly for hydrocarbon investments up to 2030 before a gradual phase out post 2030.
Shettima, who stated these at the Energy Transition symposium with the theme: ‘Energy Transition in an oil- dependent economy’, organized by the Development Agenda Magazine in Abuja on Friday, said the energy transition plan is very clear on the need for Nigeria to become a net- zero economy by 2060.
The Vice President said the President Bola Ahmed Tinubu-led administration has already made a number of notable interventions within its first year in office, adding that in February 2024, the President signed three Executive Orders as part of the government’s commitment to make Nigeria a destination of choice for gas investment.
He said that the other two Executive Orders were pertaining to ensuring that local content requirements do not hamper investment and that contacting costs and timelines are brought in line with global best practice.
Shettima said that the two-pronged strategy to pursue renewables alongside oil and gas investment have yielded results that support the overall energy transition.
He said that the Climate Change Act signed in 2021 seeks to maintain climate action into national plan and programmes, adding that a renewed push towards hydroelectric power seeks to tap into over 14,000MW of near-term hydropower potential.
According to Shettima; “The 700W Zungeru Hydropower plant just came online in 2024. The national regular has also mandated electricity distribution licenses to procure a certain percentage of their power from renewables. The Electricity Act 2023 which Mr President signed, strongly supports the transition to a more renewable energy mix”.
The Vice President further said that energy transition would not be easy but, requires concerted effort locally and international collaboration to source financing and to prepare the Nigerian workforce for a Net- zero economy.
Speaking in turn, the former Minister of Power and the Founder/Chairman of Geometric Power Limited, Prof. Bartholomew Nnaji, said Nigeria does not only have fossil fuels but has abundant resources.
Nnaji said fundamental changes occurring in the global energy system as fossil fuels, olive and gas have changed the society over two decades, adding that Nigeria is at a point where there is global conversion.
He said; “For petroleum state like Nigeria where economy is driven predominantly by fossil fuels, this transition has very important implications, including Geopolitical implications”.
Earlier, the Publisher and Editor-in-Chief of Development Agenda Magazine, Mr Paddy Ezeala, said as the world seeks to pivot from fossil fuels towards less polluting cleaner energy sources, countries of the global south and their citizens are palpably disadvantaged- either as inheritors of the burden of extraction or of lack of resources and technology to compete
Ezeala said the symposium would explore factors and opportunities for mitigating the expected negative effects of government’s energy transition programmes on Nigeria, including how to ensure that impacted communities are helped and how to secure justice for residents of those communities.
