Nigeria’s Energy Transition Plan (2)

The federal government of Nigeria needs to start thinking seriously about starting a nuclear atomic energy project of the future. Although it could sound a tall order (considering the cost implications) but, it is visionary and necessary for a sustainable energy transition plan for an economy that looks up for progressive growth and sustainable development; in this era of green energy solutions that comply with the carbon emissions adaptation pact. A long term development plan could be commissioned alongside the current transition plan and programme. The essence of this strategic idea and economic initiative is to strategically prepare a robust and sustainable energy supply plan, which will position the economy for future energy demands. The supply plan (if implemented) should be a trusted and reliable one, that can adequately meet all aspects of the national energy needs, in line with the global battle to secure the planet earth from the looming environmental catastrophe linked to the impact of Global Warming. This strategic idea needs to be looked at by the National Energy Commission, to consider developing it further for positive results.

Energy transition in the actual sense does not necessarily or literally mean a complete shift from fossil fuels sources to renewable energy sources (but could equally, be a gradual drift and advancement in energy equation). A wider interpretation of this, includes a broad view that accommodates an optimal utilization of the total energy mix (both fossil and renewable energies, on an interim basis), for efficient energy solutions management and its effective performance in the economy. This dimensional perspective shall most probably ensure an economically viable strategy that discourages wastage or non-employment of the available Capital Stock (especially the yet to be tapped crude oil and gas mineral deposits). It is an initiative that needs to be utilized by optimally exploiting the opportunity it offers for energy portfolio management gains; before Nigeria eventually exits and terminates from the fossil fuels business. The idea needs to run in line with the already spelt out response of the federal government come 2060; in compliance with the multilateral Climate Change adaptation policy plan of the UN COP26 on net-zero carbon emissions strategy.

Energy crisis and energy-poverty are two of a kind in the energy supply value chain because they both impact the economy in a similar operational mode (cause and effects) of under supply of energy, and its provision in short supply. This critical interpretation on the energy flow dynamics is always observed whenever energy business is closely monitored from source to consumption. It unfavourably affects economic growth rate (noticeable by most economic indicators with characteristics of abject poverty because wealth is hardly created from being unproductive). The situation adversely impacts the environment (poor aesthetics resulting from sluggish physical planning with embarrassing and very annoying delays in structural development). In most cases, it essentially affects people’s lifestyle in so many unfortunate forms (it causes food scarcity, introducing hunger in the society with other social vices and criminal tendencies; poor health conditions, deplorable living standards, lack of basic home amenities that support healthy living, especially during hostile weather conditions like at winter seasons, no sufficient gas supplies to heat homes); and lack of social activities (sporting facilities for the youths that are powered by energy) within the economy. As a matter of fact, the demerits of energy-poverty and under supply of energy are too numerous to mention. This therefore proves that a caring government needs to cater for her citizens by adequately providing enough sources of sustainable energy mix that can (at least) power the economy, while protecting her sovereign integrity (lives and property).

The natural gas reserve in Nigeria is one energy source that must not be ignored. Although natural gas is fossil fuel, it belongs to the hydrocarbon family but it is one energy source that is characterised as a cleaner energy (although it is not recyclable, not a renewable energy). A good example is the cooking gas known as Liquefied Petroleum Gas (LPG). It is a Propane (C3), Butane (C4), Pentane (C5); Alkane or Paraffin hydrocarbon compound that burns with bluish, very hot flame. In the currently sought support for Nigeria’s Energy Transition Plan, let the government develop the gas infrastructure and encourage local investors to process LPG locally (using LPG/CNG modular processing plants around the existing oil wells at various oil fields, to trap and harvest the associated gas and process it), than its present importations of more that 90 percent of its local demands. This can be easily obtained from the nation’s natural gas reserves of around 206.53 trillion cubic feet (TCF) of proven gas that is worth more than $803.4 trillion (in addition to a potential upside of 600TCF). Its alternative for home cooking, the Kerosene/DPK as at July 2022, shut up in price, and was as high as 99 percent increase (according to NBS). Why can’t Nigeria (as the most extensive in Africa, and among the world’s top 10 in gas deposits) develop gas infrastructure for processing of LPG and CNG?

One personally believes that we can internally resolve our economic challenges, if political will is applied by the government to curb corruption in Nigeria’s oil & gas industry. The responses from the World Bank in America on this search for support for Nigeria’s Energy Transition Plan is indicative of this fact – that Nigeria should look inwards and harmonise the varying exchange rates of Naira, and also end the mess called petrol subsidy policy. We are our own nation’s economic arch enemies, not foreigners!