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Tue, Aug 29, 2023 3:45 PM

Nigeria Requires N1.9 Trillion for Net Zero Emissions Plan: Experts

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Nigeria Requires N1.9 Trillion for Net Zero Emissions Plan: Experts
Nigeria needs N1.9 trillion to successfully implement the Net Zero Emissions plan under the Nigerian Energy Transition Plan, according to experts. The challenge of financing gas initiatives has emerged along with the plan, posing a hindrance to its implementation. By 2040, Nigeria aims to shift its gas utilization portfolio towards the domestic sector. However, the experts emphasize the need for a feasible pathway and strategies to overcome challenges such as natural gas pricing and poverty to achieve a sustainable future.

Lagos - Nigeria requires N1.9 trillion to successfully implement its Net Zero Emissions plan as part of the Nigerian Energy Transition Plan (ETP), experts have revealed. The experts conveyed this information during the Power Dialogue organized by The Electricity Hub (TEH) in Abuja. The theme of the event was 'Analyzing the Nigerian Energy Transition Plan' and 'Nigeria's Energy Transition Plan: Reforms and Implementation'.

The experts pointed out that the Energy Transition Plan, which aims to transition Nigeria to cleaner energy sources, will remain merely a plan without a feasible pathway for implementation. Additionally, the financing of gas initiatives, a crucial aspect of the plan, poses a significant challenge.

By 2040, Nigeria intends to shift its focus on the gas utilization portfolio towards the domestic sector, as the global market diminishes. Gas is regarded as the transition fuel due to its abundant availability, with Nigeria presently exporting approximately 14% of LNG gas to the European Union.

A major hindrance to gas development in Nigeria lies in natural gas pricing within the domestic economy. Specifically, gas allocated to the power sector is traded at deregulated rates within the industry unless there is an identified buyer or seller. Unfortunately, the potential benefits of this often remain underutilized.

The panel of experts at the Power Dialogue included distinguished professionals in the energy sector. Notably, Zira John Quaghe, Nigeria's Focal Person at The African Climate Foundation; Jennifer Ifeanyi-Okoro, Vice President of Public Policy at Sun King; Charles Majomi, a Partner specializing in Gas and Energy Transition at The Nextier Group; and Chibuikem Agbaegbu, the Program Manager at Nigeria Off-Grid Market Accelerator, moderated the discussion.

During the dialogue, Jennifer Ifeanyi-Okoro elaborated on the strategies and targets involved in the energy transition pathway. She emphasized the importance of product affordability to connect with a larger population, especially the poor. Okoro stated that a significant amount of N1.9 trillion would be required for Nigeria to achieve Net Zero emissions by 2060.

Okoro further highlighted that poverty remains the most challenging obstacle in the Energy Transition Plan. She argued that unless Nigeria develops solutions to address fundamental needs such as housing, clean water and energy access, food security, and education, the goal of Net Zero emissions will continue to elude the country, hindering its progress towards a sustainable future.

Zira John Quaghe discussed the climate goals and how the energy transition aligns with them. He emphasized the need for accountability mechanisms and referred to the five countries actively working towards achieving the Net Zero plan, asserting that Nigeria is not currently among them. Quaghe explored climate finance market strategies from a philanthropic perspective, highlighting the potential role of philanthropy in aligning budgetary and physical planning. He also addressed ways Nigeria could enhance the quality of its climate change discourse.

Charles Majomi focused on the significance of adding value to gas for socioeconomic welfare. He highlighted Nigeria's missed opportunities in leveraging gas as a primary resource and underscored the crucial role of transitioning away from dirty fuels, while also emphasizing that gas will continue to be used productively as an export resource.

In conclusion, the experts emphasized that energy transition is an intensive and gradual endeavor that requires intentional efforts for continual improvement and sustainability. Nigeria, with its abundant resources, has the potential to transition to Net Zero emissions. However, it requires the implementation of suitable policies, plans, and strategies, along with effective regulations, to break free from the vicious circle of carbon emissions.

Source of content: OOO News 2023-08-29 News

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