Financial Energy Review
…….by Ben Ndubuwa…….
The Federal Government has announced a substantial investment exceeding $75 million to advance Compressed Natural Gas (CNG) systems, aiming to promote cleaner and more affordable energy options across the nation. The initiative reflects the government’s commitment to reducing reliance on traditional fuels and expanding sustainable energy access.
Speaking at the Oil Trading and Logistics (OTL) Africa Downstream Energy Week, Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, expressed optimism about Nigeria’s oil and gas sector, which has been in operation for over 80 years. However, Verheijen highlighted that Nigeria has captured only a small fraction of the industry’s potential, with the sector achieving about 4% since 2016.
“President Tinubu’s administration has worked to create a more transformed environment, prioritizing efficiency and transparency with new incentives for LNG and CNG adoption as well as for electric vehicles,” said Verheijen, represented by Eriye Onagoruwa at the event. “Stakeholders must continue conversations aimed at reshaping our oil and gas sector.”
In his opening address, Lagos State Governor Babajide Sanwo-Olu emphasized the role of partnerships in driving growth within Africa’s downstream energy sector. Speaking through Lagos Commissioner of Energy Resources, Biodun Ogunleye, Governor Sanwo-Olu stressed the importance of alliances for progress.
“This gathering of the continent’s brightest minds is a testament to our shared vision for a sustainable, inclusive energy future,” he stated. “Lagos is dedicated to setting the pace for energy reform and economic growth, fostering an environment that welcomes investment, encourages technological advancement, and champions sustainable practices.”
Highlighting Lagos State’s ongoing efforts in clean energy, Governor Sanwo-Olu added, “Our administration has worked tirelessly to make energy more accessible, affordable, and sustainable. Through partnerships and investment, Lagos has become a model of resilience and innovation in the energy sector.”
The Governor underscored the role of Africa’s abundant natural resources, such as gas reserves, as a cornerstone of the continent’s energy transition. He called for energy infrastructure development to be built on frameworks that promote investment, streamline regulations, and foster innovation.
“Our goal is to build policies that reduce costs, minimize bottlenecks, and protect our citizens’ interests. While we are committed to a low-carbon future, natural gas, CNG, and LPG will continue to be critical components of our energy mix,” said Sanwo-Olu.
Lagos has already embarked on initiatives like harnessing solar energy for street lighting, developing mini-grids, and exploring cleaner fuel options for transportation. The Governor highlighted that achieving this vision requires collaboration across sectors.
“Africa’s energy future is bright, but that future depends on the choices made at forums like OTL. I urge all stakeholders to choose collaboration over competition, sustainability over short-term gains, and resilience over complacency,” he concluded.
As the discussions at OTL Africa Downstream Energy Week continue, Nigeria’s leaders remain optimistic about driving the nation’s shift toward sustainable energy through significant investments, innovative alliances, and a strong commitment to environmental responsibility.
