In a compelling appeal at the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Nigerian officials underscored the nation’s pressing need for additional funding to advance its gas value chain. This year’s ADIPEC, the largesoil and gas energy summit, drew over 180,000 participants and focused on themes of decarbonisation and artificial intelligence. Nigeria’s delegation conveyed a message stressing the importance of fair financing for its gas sector as part of the country’s energy transition strategy.
The Strategic Role of Gas in Nigeria’s Energy Future
Nigeria has made gas a central component of its energy agenda, viewing it as a vital “transition fuel” for reducing reliance on crude oil. While previous efforts at gas commercialisation faced obstacles, Nigerian officials highlighted the government’s commitment to maintaining consistent focus this time around. Nigeria is actively setting up frameworks to attract funding, including initiatives like the Presidential CNGA (Central Natural Gas Access) Limited and a mainstream infrastructure fund. These efforts are aimed at bridging gaps in gas infrastructure, ensuring broader access and commercialisation, and supporting industrial and domestic energy needs.
An official from the Nigerian National Petroleum Corporation (NNPC) emphasised the critical role of private-sector involvement, alongside public investment, in driving sustainable development within the gas sector. As oil faces increasing scrutiny in global financial markets, Nigeria aims to shift focus towards gas, which aligns better with international calls for decarbonisation.
Addressing Disparities in Decarbonisation Goals
Nigeria’s plea for more investment stems from what officials describe as an inequitable global approach to decarbonisation. While the country contributes only 3% to global emissions, it is still held to the same decarbonisation standards as nations with much larger carbon footprints. This has led to challenges in accessing funding as oil and gas financing becomes more restricted globally.
Nigeria’s call for fair financing resonates with its broader goal of balancing the need to decarbonise with addressing energy poverty. With energy poverty affecting millions across Nigeria, officials argue that immediate decarbonisation efforts must not come at the cost of economic stability and essential energy access for its population. Nigeria’s representatives at ADIPEC argued that support from global investors is essential for countries with developing economies to make a just transition without risking socio-economic hardships.
A Roadmap for Nigeria’s Energy Sector
In the coming year, Nigeria’s success in the gas sector will depend heavily on its ability to secure international and private-sector funding while maintaining progress towards decarbonisation. The government’s investment drive is expected to play a pivotal role in stabilising energy prices, generating jobs, and contributing to the nation’s overall economic development.
As ADIPEC wraps up, Nigeria’s delegation hopes the summit’s discussions on decarbonisation will spur greater understanding and support for developing nations that seek a balanced approach to energy transition. With strategic investments, Nigeria can effectively utilise its vast natural gas reserves, helping to secure a cleaner, more sustainable energy future for its citizens.
