. . . 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.

ALSO READ: NNPC Ltd Declares State Of Emergency On Crude Oil Production

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.

ALSO READ: NNPC Foundation Offers 2,659 Youth Corpers Business Opportunities

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.

Minister of Power, Adebayo Adelabu, has reported that Nigerians annually spend N16.5 trillion on fuel and generator servicing.

Adelabu disclosed this information on Tuesday at the ongoing NOG Energy Week in Abuja.

The Minister attributed his claim to 2023 research but did not provide specifics, instead comparing the figure to the 225% increase in electricity tariffs implemented on April 3, 2024.

Adelabu also highlighted significant foreign investments exceeding $1 billion in renewable energy sources.

He said “What Nigerians spend on self-generation of power—on fueling and servicing their generators—is N16.5 trillion, according to research that was carried out in 2023.

“Looking at this, you will see that what Band A customers pay is still cheaper compared to this, despite having 24-hour uninterrupted supply.

“over $1 billion in investments have been placed into renewable energy sources by foreign lenders and institutions.”

He added that his ministry, guided and supported by President Tinubu, is making significant progress in energy and gas developments.