Nigeria’s energy future is at a pivotal crossroads, as discussions surrounding the role of gas in the country’s energy transition take center stage. During a critical address to the National Association of Energy Correspondents, Farouk A. Ahmed, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), shed light on the nation’s evolving energy landscape.
As Nigeria strives to resolve its economic and social challenges, the country’s Energy Transition Plan (ETP), launched in 2022, envisions gas as a key bridge between carbon-heavy energy sources and a future dominated by renewable energy. This plan aims to promote energy access, improve reliability, and mitigate climate change while also driving economic growth.
“Nigeria’s 209 trillion cubic feet of proven gas reserves position us as the largest holder of gas reserves in Africa and one of the top ten globally. Yet, this resource has historically taken a back seat to crude oil. Now, we have the chance to change that,” Ahmed emphasized. He highlighted that natural gas, as a cleaner-burning fuel, could help Nigeria reduce its carbon emissions while ensuring a reliable energy supply for its population.
However, the country faces a “trilemma” involving finance, energy security, and international politics. Massive financial investments are required to develop Nigeria’s gas infrastructure. While the Petroleum Industry Act (PIA) of 2021 provides a solid framework for attracting investment, the sheer cost of modernizing the country’s gas infrastructure is estimated to run into billions of dollars.
Energy security is also a pressing concern. Despite Nigeria’s vast gas reserves, the country continues to flare around 2.5 billion cubic feet of gas daily. Ahmed underscored the importance of fully utilizing this resource, noting that it could significantly bolster the nation’s power supply. The “Decade of Gas” initiative aims to maximize the use of gas, adding up to 5,000 megawatts to the national grid by 2030.
In the realm of international politics, Ahmed acknowledged that global decarbonization efforts present both challenges and opportunities for Nigeria. As Europe and other regions seek alternatives to their traditional gas suppliers, Nigeria could become a reliable partner through projects such as the Nigeria-Morocco Gas Pipeline and the West African Gas Pipeline. However, as a member of OPEC, Nigeria must balance its commitments to reducing carbon emissions with its economic dependence on fossil fuels.
The Presidential Compressed Natural Gas (CNG) initiative, which aims to reduce the country’s dependence on oil, was also spotlighted as a key driver of energy security. Ahmed stressed that Nigeria’s role as a regional energy supplier must be strengthened to enhance regional security and foster economic collaboration.
Concluding his remarks, Ahmed called for a collaborative approach to tackling the trilemma of finance, energy security, and international politics. “Investments in gas must be a top priority for the government at all levels,” he said, urging public and private sectors to work together for a sustainable and prosperous Nigeria.
This discussion signals the growing urgency for Nigeria to navigate its energy transition carefully, ensuring it meets both domestic needs and international expectations in the shifting global energy landscape.