5 key factors to drive Nigeria’s $410 billion Energy Transition Plan implementation – Nairametrics

The World Bank, the Global Energy Alliance for People and Planet (GEAPP), and the African Development Bank (AfDB) were just a few of the organizations that were present during Nigeria’s virtual launch of its Energy Transition Plan in August 2022. The event presented a roadmap for Nigeria’s journey to net zero by 2060.
Net Zero Climate defines net zero as a state in which the greenhouse gases going into the atmosphere are balanced by the removal of such gases out of the atmosphere.
According to the 2022 Africa Energy Outlook from the International Energy Agency, Africa contributes less than 3% to the global greenhouse gas emission (GHGs), meanwhile, Nigeria emits million tons of CO2, which is about 0.1% of global GHGs. However, the United Nations’ Intergovernmental Panel on Climate Change has emphasized the pressing need for climate adaptation in Africa. This is due to the fact that some parts of Africa have experienced widespread loss and damage related to biodiversity loss, flooding, water shortages, reduced food production, loss of lives, and reduced economic growth.
In September 2022, Nigeria’s Vice President, Prof. Yemi Osinbajo took a delegation to the United States to meet international bodies and the US government to seek financial support for the implementation of Nigeria’s Energy Transition Plan. Finance is an important part of building resilient energy systems in Nigeria, and so are these other factors;
In implementing the energy transition plan, there is a need for Nigeria to realize that investment in infrastructure and attention to proper regulation of carbon-intensive behaviors will be key.
News continues after this ad
Lawyer and Energy-Climate Analyst, Oghosa Erhahon told Nairametrics that for Nigeria’s energy transition plan to be effective, actions that lead to penetration of the circular economy, as well as energy transition education, have to be top priorities.
“If Nigerians are not properly educated on what the energy transition means, how will they make the right decisions or exhibit behaviors that are energy efficient?
News continues after this ad
“If for instance, two relatives are heading to the same destination, making use of two separate vehicles only contributes further to carbon emissions,” she said.
Erhahon also said that for the energy transition plan to be effective, the Nigerian government has to regulate the use of internal combustion engine (ICE) vehicles and diesel generators. In the United Kingdom for instance, there is a checklist for ICE vehicles to ensure roadworthiness and limit the amount of carbon these cars are emitting.
On the subject of financing, the government is actively seeking partners to invest in Nigeria’s energy transition plan. But past policies that are yet to be fully implemented might work against such efforts.
As Nigeria welcomes a new government administration in 2023, the litmus test will be what the new government prioritizes, says Jide Pratt, an energy stakeholder in Nigeria’s midstream and downstream sectors.
Mr. Pratt says Nigeria’s policy inconsistency might work against it when it comes to seeking financial support from the international community.
“I don’t think the international community would fund our plan because we do not honor contracts. The Petroleum Industry Act is extremely clear on subsidies, yet, we have already reneged on this, bearing in mind it took 12 years for the bill to become an act.”
Also setting Key Performance Indicators (KPIs) and measuring them could be a problem as we have seen the same scenario play out in past policies like the Gas Master Plan, Vision 2020, and the Decade of Gas.
Measuring where the energy transition plan will be in the coming years, Mr. Pratt says Nigeria’s inability to solve glaring problems in due time will not encourage much-needed investments for the plan implementation, and in 10 years, we may not have made measurable progress.
Your email address will not be published.

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |
Follow us on social media:
© 2022 Nairametrics
© 2022 Nairametrics


Leave a Comment