2 weeks ago
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A policy dialogue group has raised concerns about Nigeria’s energy policy, which appears to prioritize natural gas as the cornerstone of its renewable energy transition strategy.
The group emphasized that natural gas should be considered a transitional “stopgap” rather than the ultimate goal of the energy transition.
As part of its eight-point recommendations, the group proposed that policies on renewables and natural gas be integrated into a unified energy strategy.
This strategy, it said, should position natural gas as a “bridge fuel” while accelerating the deployment of renewable energy solutions.
The dialogue, focused on achieving a sustainable energy transition, was held last week in Abuja.
It was convened by the Natural Resource Governance Institute (NRGI) in partnership with the African Initiative for Transparency, Accountability, and Responsible Leadership (AFRITAL).
Discussions centred on balancing the roles of natural gas and renewable energy in Nigeria’s transition strategy.
The analysis highlighted potential risks in Nigeria’s current approach, noting that excessive reliance on natural gas could divert resources and investments away from renewable energy initiatives.
This, the group believes could result in natural gas being viewed as the final destination of the transition, especially in scenarios where resources are limited, thereby undermining the growth of renewable energy.
The group recommended that policies targeting market liberalization, energy access, and emissions reduction be strategically aligned to ensure consistency and effectiveness.
It also emphasized the importance of addressing “environmental trade-offs,” saying, “While gas policies reduce flaring and emissions, their long-term reliance risks conflict with renewable-specific environmental objectives. Integrating life-cycle emissions assessments into planning could resolve such disputes.”
The group proposed fostering investment synergies by developing hybrid energy programs that combine gas and renewable technologies, including solar-powered gas processing facilities or gas-grid-supported mini-grids, which can enhance integration and complementarity between energy sources.
Additionally, energy policymakers were encouraged to adopt demand-driven policy frameworks by conducting comprehensive energy demand assessments and incorporating the findings into policy development.
Strengthening stakeholder engagement was also recommended to ensure policies are data-driven and aligned with actual energy needs.
The group added “Develop workforce transition plans incorporating skills mapping and training programs; establish partnerships with industries and educational institutions to prepare workers for renewable energy roles;
“To design new modular gas infrastructure to accommodate future renewable energy integration, and to implement policies incentivizing retrofitting existing facilities for renewable applications;
“To establish renewable energy training hubs to build local technical capacity, and to partner with international agencies for knowledge transfer and promote innovation in project structuring to meet international financing standards;
“To delineate responsibilities between regulatory and operational bodies, and to create a centralized coordinating agency for harmonizing energy transition efforts across sectors;
“To conduct a holistic energy policy review towards establishing a policy integration task force to align goals across institutions and promote complementary strategies.
Participants in the policy dialogue recalled Nigeria’s commitment to achieving net-zero emissions by 2060, leveraging natural gas as a transition fuel toward cleaner energy sources.
They noted that in May 2024, the government published details of its Decade of Gas (DoG) initiative, complementing the earlier launch of Nigeria’s Energy Transition Plan (ETP) four years prior.
The discussion also referenced earlier renewable energy strategies, such as Vision 30:30:30, which underscore the government’s commitment to increasing the share of renewable energy in Nigeria’s energy mix.
In light of these developments, the Natural Resource Governance Institute (NRGI) and the African Initiative for Transparency, Accountability, and Responsible Leadership (AFRITAL) convened a Policy Dialogue.
The event provided an opportunity for policymakers and stakeholders to critically assess and streamline Nigeria’s gas and renewable energy pathways to achieve its ambitious energy transition goals.
In his welcome address, Dr. Louis Ogbeifun, Executive Director of AFRITAL, set the tone for the discussions by outlining key expectations and aspirations for the dialogue.
He highlighted the government’s ambitious plans to achieve carbon neutrality, driven by initiatives such as the Nigeria Gas Commercialization Programme (NGCFP) and the ETP.
However, he underscored the importance of an equitable transition over a mere technical transition, pointing out that Africa has only benefited from 3% of global energy transition investments, despite holding 40% of global solar energy potential and contributing just 1% of global power generation.
Dr. Ogbeifun called for urgent action to address these investment gaps and ensure a fair energy transition for Africa.
He stated: “Nigeria has great renewable energy potential but needs to prioritize and right-size its energy frameworks.”
It was observed that although all stakeholders are talking about a just and equitable transition but evidence shows a reluctance on the side of lenders to support gas as a cleaner energy option towards renewable energy end.
Aaron Sayne, in a presentation, articulated this saying, “Investors are willing to support renewable finance, yet Africa only has 3% of the total expended the world over, with South Africa, Morocco, Kenya, Ethiopia, and Senegal dominating the market. More worrisome is that lenders charge African countries/companies up to 700% of what they charge Europe or North America.
“The result is that Africa has at least 40% of the world’s solar potential but with less than 2% of all solar panels.”
The policy experts questioned the fairness and justice of this approach, emphasizing the importance of striking a balance between investments in natural gas as a transitional or long-term resource and investments in renewable energy.
They stressed that such a balance is crucial to addressing key issues, including supporting vulnerable communities, providing vocational training, and offering financial incentives for youth and local businesses.
This approach, they argued, is essential for fostering inclusive and sustainable development in Nigeria.
The policy dialogue initiative had in attendance top stakeholders in the energy sector including the Nigeria Liquefied Natural Gas Company Limited (NLNG), the Nigeria Infrastructure Advisory Facility (NIAF), and the Nigeria Extractive Industries Transparency Initiative (NEITI).
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