*The Federal Government of Nigeria, at the recent Inaugural US-Nigeria Strategic Energy Dialogue, highlights key sector reforms, including closing energy gap for 100 million consumers, five new presidential directives issued to cut cost and time of contracting for gas projects, as well as the new $550million upstream gas project

Isola Moses | 绿帽献妻

The Federal Government of Nigeria has highlighted key sector reforms, including the ones that seek to close energy gap for 100 million consumers, five new presidential directives issued to cut cost and time of contracting for gas projects, and new $550million upstream gas project kicked off recently.

The government, which enumerated the efforts in the sector at the recent Inaugural US-Nigeria Strategic Energy Dialogue, noted the major energy reforms introduced in Nigeria since June 2023.

Such reforms have focused on improving energy security, attracting investment and deepening collaboration with key partners like the United States Government.

Olu Verheijen, Special Adviser to President Bola Ahmed Tinubu on Energy, stated this in remarks delivered September 12, 2024, at a luncheon organised as part of the Inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department, in Washington, DC.

The Presidential aide noted that the Dialogue was established June 2023 to create a platform for the US and Nigerian governments and private sector to deepen bilateral cooperation to advance the implementation of shared energy and climate action ambitions.

Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation and clean cooking.

Morenike Adewunmi, Stakeholder Management, Office of the Special Adviser to the President on Energy, in a statement noted Verheijen said: 鈥淚 cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue.

鈥淭he goal of this dialogue is to for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power.

鈥淲e want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted, and with tangible outcomes.鈥�

Speaking at the forum, Geoffrey R. Pyatt, Assistant Secretary of the State Department鈥檚 Bureau of Energy Resources (ENR), was quoted to have said: 鈥淭he inaugural U.S.-Nigeria Strategic Energy Dialogue sets the stage for strengthened energy collaboration between the United States and Nigeria.

鈥淭ogether, we’re advancing shared energy security, decarbonisation, and economic growth goals,鈥�

Verheijen further highlighted key reforms that the government of Nigeria has launched to improve the viability of the gas-to-power value chain since President Tinubu assumed office May last year.

According to her, these include initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors, and to reduce carbon emissions from gas production.

To support the reform efforts, she stated that President Tinubu issued five new executive orders aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.

The directives aim to immediately unlock up to $2.5 billion in new oil and gas investments in the country, noted she.

Verheijen affirmed that the reforms have since started yielding results, with the recent announcement of Final Investment Decision (FID) on a new $550 million upstream gas project that will deliver 350 million standard cubic feet of gas per day when operational.

The Special Adviser to the President on Energy also acknowledged the support of financing and technical partners like the United States government, the World Bank and the African Development Bank towards Nigeria鈥檚 ambitious goals to expand electricity access and reliability through grid and off-grid solutions.

She affirmed her optimism about the bright prospects for Nigeria鈥檚 energy sector, especially with the renewed focus on gas as a transition fuel in the race to meet the country鈥檚 commitments to the Paris climate agreement.

鈥淲e see resilient demand for gas through the energy transition as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately,鈥� Verheijen said.

Ekperikpe Ekpo, Honourable Minister of State for Petroleum Resources, led the Nigerian delegation to the US-Nigeria Strategic Energy Dialogue, held September 11-12, 2024, and that included officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, NNPC Limited, and others.

The US delegation also embraced representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency (USTDA), and the Export-Import Bank (EXIM).

It is equally noted that the Dialogue witnessed the launch of a new Nigeria-focused initiative, the Clean Energy Alliance of Nigeria (CLEAN), by the US State Department, to mobilise stakeholders to support and promote investment in clean energy in Nigeria.

Kindly Share This Story