Energy Transition: NEITI Launch Research Of Impact On Nigeria’s Economy
Gift Eguavoen
Key stakeholders, experts, and policymakers came together in Abuja on Tuesday, at a workshop to provide strategic insights into a research launched by the Nigeria Extractive Industries Transparency Initiative (NEITI), on the impacts of energy transition on Nigeria’s economy
Chairman of the NEITI Board, Senator George Akume who was represented by its alternate Chair, Ambassador Mathew Adoli, while speaking at the event, emphasized the urgent need for Nigeria to strategically respond to the challenges and opportunities presented by the global move towards cleaner energy.
Akume said “The transition from fossil fuels to renewable energy sources is no longer an abstract concept. It is a reality shaping policies, markets, and investment decisions worldwide. For Nigeria, an oil-dependent economy, this presents profound challenges and opportunities.”
He noted that our ability to navigate this transition effectively will determine not only the future of our energy sector but also the overall sustainability of the Nigerian economy.
The Board Chair outlined three critical areas of focus for the study which include, revenue diversification by accelerating reforms in non-oil sectors; investment in clean energy that would attract global and domestic investment in renewable energy infrastructure and just transition that would ensure an inclusive and equitable shift to clean energy.
Also speaking, Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, highlighted the study’s significance, linking it to key findings from the recently released NEITI’s 2023 Oil and Gas Industry Report.
Some of these findings are the 15% decline in oil revenues between 2022-2023; and 8% decrease in Nigeria’s production volumes between 2022 and 2023 with the reserve-replacement ratio steadily declining.
Dr. Orji emphasised that the findings in the NEITI reports signaled the growing impact of global energy transition policies, which underscores the urgency of addressing Nigeria’s energy transition impacts.
The Energy Transition methodology workshop provided an interactive platform for participants to make input into the study’s framework, ensuring that it is rigorous, inclusive, and reflective of Nigeria’s unique circumstances.
While noting that the project was a collective one, Orji urged stakeholders to contribute by suggesting additional data sources to enrich the study, identify gaps in the research framework and propose strategies to ensure broad consultation across sectors, in a manner that would ensure its findings will inform national policies, guide investment decisions and shape Nigeria’s energy future.
He enumerated the terms of reference and scope of the study to include establishing a global trend and projections on crude oil demand in the next 10years, reviewing Nigeria’s energy transition plan, related government policies and its adequacy for the country’s transition targets, supporting NEITI’s mandate in a changing energy landscape and aligning government’s ET plan with the EITI evolving standard on climate change and energy transition.
Speaking on behalf of the civil society constituency, the representative of the Civil Society on the NEITI Board, Dr. Erisa Danladi welcomed the inclusion of civil society in the ongoing stakeholder’s consultation process for the study, calling for particular attention to be paid to the negative impacts of energy transition and climate change on women and children as well as gender diversity.
Subscribe To Newsletter
