The recent statement credited to President Bola Ahmed Tinubu to the effect that Nigeria has attracted over $2 billion in investments in the renewable energy sector is quite cheering. It is estimated that Nigeria needs $4 billion in investments to completely depend on renewable energy and go green by 2050.
“Over the past decade, Nigeria has attracted over $2 billion in investment in the renewable energy sector and this has become a fast-growing sector in the economy. Our commitment is to continue this trajectory and attract more private sector involvement in the renewable energy space that includes manufacturing locally produced solar panels and batteries. By encouraging local production of equipment, we can reduce the cost of implementation thereby lowering the threshold for electrification,” Tinubu said.
Speaking at the opening ceremony of the 3rd edition of the Africa Natural Resource And Energy Investment Summit (AFNIS) in Abuja, Tinubu, represented by Vice President Kashim Shettima, said natural gas is a transition fuel that will aid in the fundamental restructuring of the nation’s economy.
“In our transition to cleaner and more sustainable energy systems, we also recognise the pivotal role that natural gas plays. To meet our electrification targets, we must recognise the importance of renewable energy in our energy mix. Renewable energy, particularly solar, remains the most cost-effective solution to connect our rural communities to electricity,” he said.
He explained that the discussion on energy transition must also include the significance of the petroleum industry as a cornerstone of the economy.
“While we strive to embrace renewable and cleaner energy sources, we acknowledge that oil and gas continue to play a vital role in our energy and economic landscape. These resources are critical not only for domestic energy needs but also for driving economic development and facilitating investment.
“Our goal is to attract more investment in the oil and gas industry and grow our oil production to 2.1 million barrels a day by December 2024. Furthermore, we will invest in our midstream and downstream infrastructure, tackle theft and hold to account developers to the highest environmental best standards,” he added.
He noted that the administration’s commitment is to manage these resources responsibly by minimising their ecological footprint and maximising their benefits for the nation now. According to the president, for Africa to fully realise its full potential and meet global climate targets, it must put collaboration at the forefront of the collective national transition plans.
Tinubu said his administration will continue to work with the international community and African neighbours to initiate and develop cross-border infrastructure systems that will allow goods and services to move easily across Africa and fully harness the potential of the African Free Trade Continental Agreement (AfCFTA).
“It should not be easier to transport natural gas from Nigeria to the far-east than to North Africa. We also acknowledge that at the core of all our decisions on harnessing the abundant natural resources of our dear continent is the safeguarding of the environment and local communities”, he said.
In his address, the Minister of Solid Minerals Development, Dele Alake, said AFNIS 2024 is not just a gathering but a convergence of visionaries, policymakers, industry leaders, and stakeholders, all united by a shared commitment to unlocking the full potential of the continent’s natural wealth.
“We are here to explore how Africa’s abundant resources can be leveraged to drive economic growth, social equity, and environmental sustainability. Under the Renewed Hope Agenda championed by His Excellency President Bola Ahmed Tinubu, GCFR, we are committed to transforming Nigeria’s solid minerals sector into a cornerstone of our nation’s economic diversification strategy.
“Our approach is multifaceted, focusing on policy reforms, sustainable practices, infrastructure development, and human capital enhancement. We are currently implementing comprehensive reforms that will create a conducive environment for investment in the solid minerals sector,” he said.
These reforms, he said, aim to enhance transparency, regulatory clarity, and investor confidence, fostering a competitive and thriving industry.
“This aligns with Mr President’s vision of an open and transparent government that works for the people of Nigeria. Our commitment to sustainability is unwavering. We are adopting best practices that minimise environmental impact and promote social responsibility.”
Regrettably, Nigeria’s power sector has gulped over $37.135 billion in the last 23 years without commensurate evidence on the ground. The Olusegun Obasanjo administration wasted $16 billion; Shehu Musa Yar’Adua government squandered $5.375 billion; Goodluck Jonathan administration sank $8.2 billion and the Muhammadu Buhari administration pumped $7.5 billion into the power sector.
More despicable is the fact that despite these huge expenditures, Nigerians spent over N796.4 billion annually on fuel to power generators. It is also estimated that Nigerians spent N16 trillion to purchase generators to solve their industrial, commercial and domestic problems in 2023.
Nigeria’s energy crisis seems to have defied every solution aimed at solving it, including efforts to turn around the nation’s four refineries, which had been comatose over the decades.
Flowing from this undesirable situation, the $2 billion investments in Nigeria’s energy sector gives a glimmer of hope that the country is on track in its quest to diversify from fossil fuel to a greener energy as a means to achieve energy security.
