Energy Transition: CSOs seek Tinubu’s gas plans

A coalition of Nigerian civil society organisations has called on President Bola Tinubu to disclose his action plans for Nigeria’s gas sector within 90 days of assumption of office.

The call is coming at a time when Nigerians are seeking alternative to the use of petroleum as energy source following the abrupt announcement of the fuel subsidy removal and the accompanying astronomical increase in prices.

In a statement signed by 21 of its members, the coalition noted that although looking more to gas for foreign exchange or domestic energy could address short-term energy and development needs, betting big on gas in the long term carries huge risks.

The statement, which was made available to PREMIUM TIMES on behalf of the coalition by its Convener, Tengi George-Ikoli- Senior Officer, Natural Resource Governance Institute (NRGI), was also endorsed by Olusegun Elemo of PLSInitiative; Adejoke Akinbode of BudgiT; Felicia Dairo of the Centre for Journalism Innovation and Development); Faith Nwadishi of the Centre for Transparency Advocacy), and representatives of 17 other coalition members.

Demands

The group charged Mr Tinubu to deliver on his campaign manifesto which it noted promises a 20 per cent increase in gas production; completion of certain “critical” gas infrastructure projects by 2027, a boost in Nigerian gas exports to the EU, and a “Nigeria First policy” by which “gas resources shall be directed, as a number one priority to Nigerian power generation.”

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The group said it welcomed Mr Tinubu’s pledge to accelerate the implementation of the Nigeria Gas Master Plan, but that he should fully develop and modernise the regulatory framework for natural gas production.

While seeking specific clarifications on how the administration plans to achieve the set objectives, the coalition added that “given Nigeria’s limited past success in turning gas into energy at home and the limited progress reported in the three years of the implementation of the government’s Decade of Gas Policy,” it would like to know how Mr Tinubu intends to engage civil society organisations and other concerned parties to monitor and track the implementation of the policy.

“Given the large scale of prior uncompleted projects and the limited funding available, the government must let Nigerians know its gas project priority areas and how the gas plans would key into Nigeria’s more expanded energy transition plan,” the statement reads in part.

The coalition expressed concerns over the country’s current debt profile, noting that the limited international sources of finance for Nigerian gas projects could force the new administration to borrow billions of dollars to fund new gas infrastructure.

“This would consume the government’s scarce revenues and foreign exchange. It would also add to the rapidly ballooning public debt and divert money from other urgent priorities,” the coalition noted.

Suggestions

The coalition said towards ensuring a sustainable implementation process, transparency and public consultation around the new government’s gas plans are crucial for ensuring stakeholders’ buy-in.

The coalition demanded that the incoming administration should “publish a comprehensive, costed, realistic and detailed Decade of Gas Policy with clear roles for the state, non-state actors and investors with periodic progress updates, fast track implementation of the Petroleum Industry Act and improve enforcement of regulations.” Doing so, it said, would hold all projects to higher operational standards, specifically decommissioning and community relations.

“Mr Tinubu-led administration should provide a detailed outline of the investment mobilisation for critical infrastructure needed to address the wide dearth of gas industry infrastructure across the value chain, properly assess the risks involved with gas expansion and create a strategy to minimise the impacts, maximise the benefits, phase out oil and gas assets and plan for a post-oil and gas future, and outline a detailed plan to end gas flaring and provide progress updates on the gas flare commercialisation programme designed to reduce host communities’ exposure to toxins and increase gas supply,” it further suggested.

Background

The history of chronic blackouts and grid failures, chronic reliance on private generators and dangerous unhealthy household fuels are well known in Nigeria.

Despite wasting tens of billions of dollars in uncompleted, and underperforming projects in the nation’s energy sector, almost half of the Nigerian population remains in darkness. Lack of access to power has stifled economic growth and driven more Nigerians into extreme poverty.

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In 2021, the former Minister of State for Petroleum Resources, Timipre Sylva, emphasised the need for Nigeria to continue to rely on natural gas as a transition fuel for key power generation.

Under Mr Sylva’s leadership, the ‘Decade of Gas’ policy has been heralded as a pathway to a gas-powered economy by 2030. But this is not the first time leaders have pinned such grand ambitions and prospects for the Nigerian economy and citizens on Nigeria’s gas sector.