From fossils to renewable, weighing up Nigeria’s economy

By Sunny Chuba Nwachukwu, PhD

Nigeria, a foremost and leading oil exporting country in Africa, has for many decades played, and still plays, a prominent role in the global energy politics of hydrocarbon in the international oil market, through the multilateral institution that protects the interests of member nations named the Organisation of Petroleum Exporting Countries (OPEC). The world’s energy intelligence, politics, and solutions governance-procedures would involve not just a simple strategy for the best management approach towards combating the contemporary global climate crisis presently ravaging the earth.
The Catholic Pope recently remarked that the climate crisis demands “a radical action!” His comment came just around the beginning of the United Nations Climate Change Conference in UK 2021, COP26, on from 31st October to 12th November 2021 in Glasgow, Scotland. The green conservative measures going to be taken multilaterally through treaties and policies towards the aspired net-zero climate resilient future are quite appreciated, but “at what speed is it going to ameliorate the damages done already in so many forms on the planet earth by carbon dioxide emissions (methane gas leakage from crude oil extraction operations)”? This, I strongly believe, is the big question that needs to be answered and most expediently addressed by the world leaders at the ongoing COP26 climate event, in order to protect people and nature.
At the pace weather changes are going (with floodings, heatwaves, deforestation, destruction of the coral reefs, droughts, climate induced famine, and the general global environmental health conditions of humans; inclusive of any eventual indirect impact linked to the COVID-19 pandemic), the Pope’s comment about “radical action”, to accelerate the global decarbonisation in combating climate change, is germane. It is heartwarming the three key resolutions already reached by member nations (over a 100 countries) at COP26: agreeing to undertake – *the stoppage and reversal of deforestation; *cut methane gas emissions by 30% before 2030; and *work towards affordable clean energy technology.
In Nigeria, of course, without a doubt, in search of global climate solutions the energy business shall definitely migrate from fossil fuels to the very obviously trending renewable energy technology in no distant future. Renewable energies are sourced from nature, the likes of sun, wind and water. These natural sources are inexhaustible, they are naturally sustainable, they are self recyclables, they are indefinitely replenished. Renewable energies do not disrupt the environmental status quo. They do not leave any known residue behind when in use. They do not devastate the natural habitat, and do not pollute the biosphere in any form. This makes them very attractive as the feasible option for energy solutions management in fighting global climate change.
This migration from the oil economy, however, should follow a gradual process. While the demand for crude oil is expected to keep declining in the international oil market, a significant economic shock on financials or similar implications would be a catastrophe because of the nation’s heavy reliance on its rich hydrocarbon deposits, which visibly remains the major source of foreign exchange earnings for the economy. The untapped crude oil and huge natural gas reserves in the country still remain an enviable base for economic development that ought to be aggressively exploited while fossil fuels still remain relevant in the energy sector of the economy.
The government can push through multilaterally signed policies, including cutting down on carbon emissions on a larger scale by oil prospecting and producing companies or related businesses, while carrying out their extractive operations; eliminate gas flaring or force its reduction to the barest minimum through carbon capture – as presently stipulated, 30 percent of methane gas reduction by 2030, to control global warming within 1.5°C ceiling. Methane gas is significantly known to be 20 percent of the entire components causing global warming, which also amounts to 50 percent of the warming impact on the planet.
The Petroleum Industry Act (PIA) that birthed the newly registered NNPC Limited, a profit-oriented business entity, needs to walk through its legal framework for operational responsibilities therein. By doing so, it will gradually invoke a transition process in the obvious migration mode to alternative sources of energy solutions. This should happen without a drastic impact, or produce a sudden shock on the existing accruals from fossil fuels proceeds (being the geese that presently lay the golden eggs). The transition process should be a gradual disengagement, while still maintaining the green action goals for carbon reduction on the entire planet, for the sake of conservation of the natural status quo for future generations.

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Sunny Nwachukwu, PhD, a pure and applied chemist with an MBA in management, is an Onitsha based industrialist, a fellow of ICCON, and vice president, finance, Onitsha Chamber of Commerce. He can be reached on +234 803 318 2105 (text only) or schubltd@yahoo.com

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