Nigeria’s $1 trillion economy target not ambitious enough – Kyari

On Tuesday, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Mele Kyari, said Nigeria’s target of achieving a $1 trillion economy is not ambitious enough.

Mr Kyari disclosed this at the opening ceremony of the 8th edition of the Nigeria International Energy Summit (NIES 2024) held in Abuja on Tuesday.

He explained that Nigeria is a major producer of petroleum products on the African continent, placing it in an advantageous position to grow its economy beyond the $1 trillion target.

“Oil will be here even by 2050, contributing to over 29 per cent of the global energy mix and increasing demand of at least 100 million barrels of oil, even by 2050. So oil and gas will be here. And we understand this, and we know the significance but it must be connected globally, and that’s why the world recognises Africa as the next destination providing greater support to the energy markets.

“As we all know, Nigeria has the largest economy, that’s not in dispute, but we have the potential of growing even bigger. And I think the $1 trillion GDP is too small, that’s not very ambitious. I think we can do better than this, and the projection is showing that this country will do better than this.

“I’m sure we know that $1 trillion is maybe the balance sheet of one IT company somewhere. We will do better than this, this country has potential for doing this, and this industry will surely be the biggest contributor to this development. And that’s already happening,” Mr Kyari said.

He noted that Nigeria’s gas resources are currently being harnessed to address the gaps in citizen’s access to clean cooking fuel and access to electricity.

According to him, Nigerian gas is not just a transition fuel but a better alternative fuel, hence the government’s commitment to developing gas infrastructure in the country, aimed at ensuring that gas is delivered to the domestic market.

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Mr Kyari said over 70 per cent of the country may not have access to clean cooking fuel.

“This is true and of course, access to electricity is about 50 per cent of our population. So there is so much space there that gas can fill. And that’s why this country has taken the next step, which is to build the necessary infrastructure, create the necessary framework, and create the necessary fiscal incentives that are required. And at this point, it’s also important to highlight that this won’t happen except we have the right leadership. And this leadership has brought something to the table, creating the fiscal tax for gas.

“As we know today, many of the foreign investment destinations that were announced in recent times would not have come up, if not for the changes that Mr President introduced. The executive orders would do a number of things. Ease of business, ease of procurement, providing new fiscal incentives for non-associated gas, and even providing some incentives so that even the oil investment can happen. And that’s why you are seeing all this is happening,” he noted.

Also speaking, the Permanent Secretary, Ministry of Petroleum Resources, Nicholas Ella, said Nigeria, the continent’s largest oil producer and a leading gas powerhouse, is committed to playing a pivotal role in this evolving energy landscape.

He said Nigeria will focus on leveraging its vast natural gas resources as a feedstock for blue hydrogen while exploring green hydrogen opportunities powered by renewables.

“Nigeria’s strategic focus on natural gas as a transitional fuel aligns with global decarbonisation goals while unlocking new economic opportunities. With the surging global demand for cleaner fuels, Nigeria strategically positions itself as a reliable partner in the worldwide energy transition.

“The energy sector globally is at an inflection point, and Africa stands at the forefront of this shift,” he said.

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In his address, Ekperikpe Ekpo, minister of state for petroleum resources (Gas), said Nigeria is steadfast in its commitment to leveraging natural gas as a catalyst for economic growth, industrialisation, and energy transition.

Over the past two years, he said Nigeria’s gas sector has undergone remarkable transformation, marked by substantial advancements in infrastructure, policy reforms, gas utilisation, and domestic initiatives.

“These milestones highlight our unwavering commitment to the renewed hope agenda of President Bola Ahmed Tinubu’s administration through maximising our abundant natural gas resources to drive economic growth, enhance energy security, and support the global transition towards cleaner energy solutions,” he said.