Nigeria must pay close attention to the challenges and opportunities by the global energy transition if the country is to effectively determine the future of her energy sector and the overall sustainability of the economy, Chairman of the Board of the Nigerian Extractive Industries Transparency Initiative (NEITI), George Akume, has said.
Akume spoke in Abuja on Tuesday at the workshop organised prior to the unveiling of the researc on the impact of energy transition, risks and opportunities on Nigeria’s economy.
Represented by the Alternate Chair of the Board, Ambassador Mathew Adoli, Akume noted that the reality of the transition from fossil fuels to renewable energy sources was no longer an abstract concept, but one that was now shaping policies, markets, and investment decisions worldwide.
He said the impact of energy transition on Nigeria, as an oil-dependent economy, presents both profound challenges and opportunities that must be effectively harnessed.
“Our ability to navigate this transition effectively will determine not only the future of our energy sector, but also the overall sustainability of our economy,” he said.
The NEITI Board Chairman outlined three critical areas Nigeria must focus attention to evaluate and study to identify the emerging opportunities to tap into for the benefit of the country’s economy.
These include revenue diversification, by accelerating ongoing reforms in non-oil sectors to prepare the country for declining oil revenues; investments in clean energy alternatives, to attract global and domestic investments in renewable energy infrastructure, and ensuring a just transition, to ensure an inclusive and equitable shift to clean energy.
He reaffirmed the commitment of the National Stakeholders Working Group in the NEITI process to provide strategic oversight that would facilitate stakeholder engagements to ensure the success of the study.
The one-day workshop, which highlighted the focus, approach and methodology for the study, was attended by key stakeholders, experts, policymakers and civil society representatives to provide strategic insights on how Nigeria would be positioned to harness the opportunities and benefits of the transition amidst global shifts in energy priorities.
The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, who also participated in the workshop said the study was significant, as it is linked to key findings from the recently published NEITI 2023 Oil and Gas Industry Report.
Some of the findings in the report established a 15% decline in the country’s oil revenues between 2022 and 2023, in addition to 8% decrease in Nigeria’s oil production volumes over the corresponding period, amid a steadily declining reserve-replacement ratio.
Dr. Orji emphasised that the findings in the NEITI reports signaled the growing impact of global energy transition policies, which underscores the urgency of addressing the impacts on Nigeria’s economy.
Also, the Executive Secretary noted the progress Nigeria has made against crude oil theft, pointing out that the NEITI 2023 report showed a reduction by 79% in crude oil losses due to theft.
This development, he said, reflected improved resource management to further grow the economy.
While commending the combined efforts of the Office of the National Security Adviser, the Nigeria Armed Forces and other security agencies for the drastic approach so far, which resulted in visible decline in crude oil theft disclosed by NEITI’s latest report, the NEITI Executive Secretary appealed for the sustenance of the fight to boost the growth of the economy.
The Energy Transition methodology workshop provided an interactive platform for participants to make input into the study’s framework, ensuring that it was rigorous, inclusive, and reflective of Nigeria’s unique circumstances.
Stakeholders were encouraged to contribute by suggesting additional data sources to enrich the study, identify gaps in the research framework and propose strategies to ensure broad consultation across sectors.
“This is not just a NEITI study. It is a collective project. Its findings will inform national policies, guide investment decisions, and shape Nigeria’s future in a world transitioning to clean energy,” Dr. Orji pointed out.
He enumerated the terms of reference and scope of the study to include establishing a global trend and projections on crude oil demand in the next ten years; reviewing Nigeria’s energy transition plan, related government policies and its adequacy for the country’s transition targets; supporting NEITI’s mandate in a changing energy landscape and aligning government’s energy transition plan with the EITI evolving standard on climate change and energy transition.
The representative of the Civil Society on the NEITI Board, Dr Erisa Danladi Sarki, who welcomed the inclusion of civil society in the ongoing stakeholder’s consultation process for the study, called for particular attention to be paid to the negative impacts of energy transition and climate change on women and children as well as gender diversity.
Stakeholders at the meeting affirmed their shared commitments to transparency, accountability and collaboration.
The study’s outcomes would play a pivotal role in shaping Nigeria’s policy responses, guiding investments in clean energy, and ensuring that the energy transition was not only just, but sustainable and inclusive.
