FG seeks transition from fossil fuel to renewable energy

The Nigeria Content Development and Monitoring Board has highlighted divestment from hydrocarbons assets and energy shortage as two implications of energy transition with different impacts on the oil and gas industry.

This was disclosed by the Executive Secretary, NCDMB, Mr Simbi Wabote, while giving a lecture at the 2022 Oloibiri Lecture Series and Energy Forum in Abuja.

While addressing the audience, Wabote noted that those were two implications emerging from a rush to move the world away from fossil fuel.

He said, “First is the divestment case in which European and Western countries are shifting funding away from the development of hydrocarbons towards renewable energy.

“The second implication is the energy shortage case in which there is decline in supply of hydrocarbons due to lack of investment while shift to renewable energies is not sufficient to meet global energy demand. The energy shortage case was already prominent even before the Russia-Ukraine war.”

Furthermore, he noted the positive part of the divestment as the active participation of local companies in upstream sector which resulted in the emergence of indigenous companies playing a major role in exploration and production activities.

“Such companies like Seplat Energy, Eroton Exploration and Production and First E and P, among others, have acquired assets and now responsible for producing about 15 per cent of Nigeria’s oil and gas requirement and 60 per cent of domestic gas.

“On the other hand, the bitter part of the divestment is the International Oil Companies divestment and reluctant to make further investment in the oil and gas.