Financial Energy Review
…….by Ben Ndubuwa…..
The Group Managing Director of Rainoil Limited, Dr. Gabriel Ogbechie, has called on the Federal Government and other key players in the energy sector to significantly increase investment in gas infrastructure to ensure national energy security. Speaking as Conference Chairman at the 2024 Annual Strategic International Conference of the Association of Energy Correspondents of Nigeria (NAEC), Dr. Ogbechie emphasized that scaling up cleaner energy initiatives would attract both domestic and international investors.
The conference, held at Eko Hotel in Victoria Island, Lagos, centered on the theme “Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics.” In his address, Dr. Ogbechie highlighted the importance of transitioning Nigeria to a gas-powered economy to address the nation’s energy security issues. He also stressed the need to tackle pipeline vandalism as part of efforts to safeguard energy infrastructure.
Dr. Ogbechie pointed out that Nigeria’s gas infrastructure deficit remains a major challenge, requiring about $20 billion annually to bridge the gap, as reported by the Nigeria Extractive Industries Transparency Initiative (NEITI) in 2023. He noted that investments in pipelines and processing plants are essential, but the country’s current economic climate—marked by inflation, fluctuating oil prices, and currency volatility—makes financing these projects more difficult.
“Compressed Natural Gas (CNG) will play a crucial role in transportation, with major projects already underway in Abuja, Lagos, Ogun, and Edo states,” Dr. Ogbechie said. He also praised the ongoing efforts to transition millions of Nigerian households from kerosene and firewood to Liquefied Petroleum Gas (LPG), which is a cleaner and more efficient energy source.
Describing gas as the most viable transition fuel for Nigeria’s energy future, Dr. Ogbechie stated, “With over 200 trillion cubic feet of gas reserves, Nigeria is well-positioned to leverage gas for both domestic consumption and export.” He also called for stronger policy frameworks to support the expansion of CNG and LPG initiatives for both transportation and household energy use.
Looking ahead, Dr. Ogbechie expressed optimism about Nigeria’s energy transition to gas, urging stakeholders to ensure that the country’s gas strategy aligns with global energy transition goals while protecting Nigeria’s geopolitical and economic interests.
“The global energy transition will require us to move quickly, adapt to new technologies, and respond to changing international policies. But I believe Nigeria has the resources, the talent, and the will to succeed,” he added.
Dr. Ogbechie concluded by applauding NAEC for organizing the conference, which continues to provide a vital platform for discussing key issues affecting Nigeria’s energy sector.
The 2024 NAEC conference is expected to foster further discussions on the role of gas in Nigeria’s energy transition and the necessary steps to secure the nation’s energy future.
