Business a.m
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has released a statement outlining how its Industry Sustainability Initiative (NISI) could create up to $575 billion in capital investment opportunities for Nigeria through decarbonisation.
During a session at the UN Climate Change Conference 2023 (COP28), the NMDPRA explored the country’s path towards energy sustainability and the role of the NMDPRA in achieving net-zero emissions by 2060. The session highlighted Nigeria’s journey to reduce its carbon emissions, including the development of the NISI and its implementation plan.
Mustapha Lamorde, executive director for Health, Safety, Environment and Community (HSEC) at the NMDPRA, stated that the $575 billion investment would come from infrastructure and technological development, improvement of the green economy, stakeholder management, and human capital development.
According to Lamorde,NISI, which was developed in alignment with Global Sustainability Development Goals 3, 7, 8, 9, 11, 13, 16, and 17, aims to achieve net-zero emissions in the midstream and downstream petroleum industry by 2060. These goals include good health and well-being, affordable and clean energy, decent work and economic growth, industry, innovation, and infrastructure, sustainable cities and communities, climate action, peace, justice, and strong institutions, and partnerships for the goals.
The executive director explained that the projected investment opportunities break down as follows: $272 billion in the power sector, $127 billion in infrastructure, $96 billion in oil and gas processing optimization, $80 billion in industry, and $2.8 billion in clean cooking. He further stated that achieving the targets would require strong government commitment and collaboration with the private sector through technological innovation.
Anibor Kragha, executive secretary of the African Refiners and Distributors Association (ARDA), expressed his support for the NMDPRA and the Nigerian government’s efforts to secure funding for gas projects from international financial institutions with a focus on agriculture. He highlighted the importance of gas in the sector, noting that it is a vital input for agriculture, both as an energy source and as a raw material for fertilizers and other inputs.
Kragha urged the NMDPRA, as the regulator of the midstream and downstream industries, to develop a plan to decarbonise the sector on a decade-by-decade basis. He recommended creating bankable projects that would encourage funding from foreign donor agencies. He also emphasized the importance of engaging and including young people in the decarbonization drive, as they are the ones who will be responsible for implementing these initiatives in the future.
Mansur Alkali, the executive director of the authority’s Midstream and Downstream Gas Infrastructure Fund (MDGIF), stated that the fund, which was established under section 52 of the Petroleum Industry Act, is essential in accelerating investment along the gas value chain.
According to Alkali, the MDGIF is neither a grant nor a loan, but rather an investment initiative that aims to de-risk investments by partnering with private sector players to develop the necessary infrastructure to harness Nigeria’s vast gas resources.
