. . . Says Everyone Has Role to Play in Derisking Sector to Attract Investors

To tackle energy poverty, the Nigerian National Petroleum Company Limited (NNPC Ltd) has called for the establishment of more local institutions in Nigeria and Africa with capacity to provide funding for energy projects.

The call was made by the Chief Financial Officer of NNPC Ltd, Umar Ajiya, at the ongoing 23rd Nigeria Oil Gas Conference and Exhibition (NOG Energy Week) in Abuja on Wednesday.

He bared his mind at a panel session themed, “Accelerating Investment, Enabling Industry Growth, Meeting Energy Demand”, the CFO argued that in the face of the reluctance by global financial institutions to finance oil and gas projects as a result of environmental concerns, there was need for the development of more institutions like Afreximbank and the proposed Africa Energy Bank to finance energy infrastructure projects.

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He further noted that the key to resolving the paradox of endemic energy poverty in the midst of abundant energy resources in Nigeria is to create an enabling environment to aggressively attract investment into the energy sector.

He listed the passage of the Petroleum Industry Act (PIA) and the recent enactment of three Executive Orders in the sector by the President as practical steps by the Federal Government to provide fiscal incentives required to attract investment.

Ajiya also contended that the task of creating an investor-friendly environment was not for government alone, stressing that citizens, right from the Immigration and Customs Officers who welcome would-be investors at entry ports to the driver who conveys them to hotels and meeting places and even the media and the judiciary, by their respective conduct, influence investors’ perception of the country.

“There’s room for everyone to make sure that investment comes back to Nigeria”, he declared.

The CFO listed Gwagwalada, Kaduna, and Kano Independent Power Plants as some of the key energy projects in the stable of the national oil company that investors can take advantage of.

Other members of the panel which was moderated by the Group Head, Energy, First Bank, Oluwatoyin Aina were the President, African Export-Import Bank who was represented by the bank’s Regional Chief Operating Officer, Anglophone West Africa, Eric Monchu Intong; Executive Director, Midstream and Downstream Gas Infrastructure Fund, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Oluwole Adama; Managing Director, Energy and Natural Resources, Standard Chartered, Ade Adeola; Vice President, Investment, Africa Finance Corporation, Taiwo Okwor; and the Executive Secretary/Chief Executive Officer, Nigerian Investment Promotion Commission, who was represented by the Commission’s Deputy Director, Policy Advocacy, Abayomi Salami.

…As NNPC Plans to Build Three LNG Stations, 100 CNG Sites

The Group Chief Executive Officer of NNPC Limited, Mallam Mele Kyari has declared that the drive to bring Compressed Natural Gas (CNG) closer to Nigerians has since commenced and is irreversible.

This was detailed in a post on the verified handle of the NNPC Ltd under the signature of its Chief Corporate Communications Officer, Olufemi Soneye.

According to the statement, Kyari made the disclosure on Thursday during the simultaneous commissioning of 12 CNG stations in Abuja and Lagos, said in addition to the massive deployment of CNG stations nationwide, the NNPC Ltd and its partners would also build three Liquefied Natural Gas (LNG) stations in Ajaokuta.

“There is simply no way to turn back on delivering CNG for all Nigerians. It is the right thing to do. Is it late? Yes, but we will make progress, we will cover the gap in order to ensure that the volatility we see with Premium Motor Spirit (petrol) does not apply to gas,” Kyari stated.

The GCEO commended President Bola Ahmed Tinubu for providing the needed support to drive domestic gas utilisation aimed at delivering cleaner and cheaper source of energy to Nigerians.

While assuring that the NNPC Ltd will continue to deliver more strategic gas projects for the benefit of Nigerians in line with the Presidential CNG Initiative of bringing prosperity to all Nigerians, Kyari reaffirmed the determination of the NNPC to guarantee the nation’s energy security.

Also speaking at the occasion, the Managing Director, NNPC Retail Limited, Mr. Huub Stokman revealed that in the next one year, NNPC Retail would have launched over 100 CNG sites, including 16 NNPC Gas Marketing and NIPCO Gas JV sites.

“CNG provides Nigeria with affordable alternatives to existing available fuel products. It will be about 40% cheaper than petrol in Nigeria and with continued investments, it will become a significant part of our energy mix,” Stokman added.

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In his remarks, Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo said the commissioning of the stations will not only provide economic benefits by creating jobs and stimulating local economies, it will also contribute significantly to Nigeria’s national goals of reducing emissions and combating climate change.

On his part, the Chairman of the NNPC Board of Directors, Chief Pius Akinyelure said increased CNG adoption will foster economic benefits by reducing fuel costs for consumers and businesses alike.

Following the removal of fuel subsidy and the declaration of the Presidential Compressed Natural Gas (CNG) initiatives, NNPC Limited has taken the lead in the deployment of Auto-CNG Stations across Nigeria.

Already, NNPC Gas Marketing Limited, a subsidiary of NNPC Limited, in partnership with NIPCO Gas Limited has developed an Auto-CNG rollout plan for construction of thirty-five (35) CNG stations across the various geographical zones of Nigeria.

Key political figures drawn from the ruling All Progressive Congress (APC) have been over the moon with news of Nigeria being selected to host the headquarters of the African Energy Bank.

Notable figures, including President Bola Ahmed Tinubu and Minister of State for Petroleum Resources, Heineken Lokpobiri have vented their joy through their verified social media handles, including micro-blogging site, X.

Lokpobiri in statement on Thursday 4 June, 2024, declared, “I am delighted to share that Nigeria has been selected to host the headquarters of the African Energy Bank! This prestigious honor is a testament to our country’s leadership and commitment in the energy sector.

NNPC Storms 2024 Energy Week, Abuja

“As the Minister for Petroleum Resources[Oil], I am incredibly proud of this achievement. The African Energy Bank will be a cornerstone for financing and advancing energy projects across Africa, promoting innovation, sustainability, and economic growth.

“This is a remarkable victory for Nigeria and the entire African continent. It symbolizes our collective efforts to harness and develop our rich energy resources for a brighter, more sustainable future.

“Thank you to everyone who made this possible. Together, we are shaping the future of energy in Africa, starting right here in Nigeria!”