Nigeria needs significant investments to meet energy transition goals – NEITI

The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji, said Nigeria will require substantial investments in the coming years to achieve its energy transition targets.

Speaking in Abuja on Wednesday during a visit from the Ambassador of Belgium, Mr. Pieter Leenknegt, the High Commissioner of Australia, Ms. Leilani Bin-Juda, and the High Commissioner of Canada, Mr. Jamie Christoff, Dr. Orji underscored the critical need for investment, particularly given Nigeria’s continued dependence on the oil and gas sector.

Dr. Orji pointed out that the nation’s vast hydrocarbon resources present a complex challenge, especially as the global economy shifts towards cleaner energy sources.

With the federal government’s decision to adopt natural gas as a transition fuel, Dr. Orji highlighted that approximately $20 billion in annual investments would be required over the next decade to develop the necessary gas infrastructure.

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Dr. Orji also noted the broader implications of the energy transition on Nigeria’s economy. “While the transition from carbon-based fuel will have significant long-term impacts on Nigeria’s revenue and exports, it will also affect the economy in other ways.

“A direct consequence of the transition would be the loss of fossil fuel as a primary energy source. In 2021, crude oil and gas accounted for 46% of energy use and 78% of electricity generation in Nigeria,” he explained.

To mitigate these impacts, Dr. Orji stressed the need for considerable financial investment to generate renewable energy that can replace the energy currently produced from carbon-based fuels.

He urged the visiting envoys to explore opportunities in these areas as they seek to bridge the existing investment gaps between Nigeria and their respective countries.

In their responses, the ambassadors expressed their commitment to supporting NEITI and the broader stakeholder community in Nigeria, aiming to enhance transparency and accountability in the extractive industries.