By Chimezie Godfrey
The Federal Government of Nigeria has been urged to translate the Energy Transition Plan into an implementable action plan that is aligned with the National Development Plan and Medium-Term Expenditure Framework (MTEF).
This is contained in a Communique issued at the end of a one-day hybrid event tagged “National Dialogue on Energy Transition” held recently in Abuja.
The Communique was signed by Nigeria Extractive Industries Transparency Initiative, Natural Resource Governance Institute, BudgIT Foundation, African Climate Foundation, Revenue Mobilization Allocation and Fiscal Commission, Nigeria Mining Cadastral Office, Energy Commission of Nigeria, Rural Electrification Agency, National Environmental Standards and Regulations Enforcement Agency, Central Bank of Nigeria, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Upstream Petroleum Regulatory Commission, and Civil Society Legislative Advocacy Centre, CISLAC.
Others include Women in Extractives, Yar’adua Foundation, CLICE Foundation, Clean Technology Hub, Centre for Transparency Advocacy, Sepat, AITEO, NAOC, Centre for Journalism Innovation Development, Energy for All Project, Extractive360, Open Government Partnership, Media Initiative for Transparency in Extractives Industries, AfriTAL, Spaces for Change, Seplat Energy, We The People, Policy Alert, Paradigm Leadership Support Initiative, Environmental Rights Action, Kabetchache Women Centre, Dataphyte, Social Action, Nigeria Union of Petroleum and Natural Gas Workers.
The Communique noted that Fossil fuel dependent economies, many of which are in Africa, stand to be significantly impacted by the global energy transition.
It stated that for Nigeria, transitioning away from its current fossi-intensive energy system is necessary but requires an approach that speaks to its specific context and local priorities, adding as a country dependent on fossil fuel for 90% of its foreign exchange earnings and around 50 per cent of government revenues, a decline in fossil fuel consumption globally will be detrimental to the economy.
According to it, this has negative implications for livelihoods, with women and other vulnerable groups bearing the brunt. Thus, now that the government has published Nigeria’s Energy Transition Plan, it is critical that the plan is responsive to the Nigerian context and the realities the Nigerian people face.
The Communique identified as one of the key challenges that the energy transition plan lacks the input of stakeholders and citizens, the development process of the Nigerian energy transition was not consultative, and there was an absence of stakeholders’ and citizens’ input.
It noted that given the fierce global competition for energy transition finance, the USD 1.9 trillion identified by Nigeria’s Energy Transition Plan to fund Nigeria’s transition process may be over-ambitious and could constitute an obstacle to its implementation.
It also disclosed that the Nigerian Energy Transition Pan has not been aligned with the National development plan, and Medium Term Expenditure Framework, MTEF, and as such might impede its implementation.
It further stated that the lack of adequate infrastructure, connectivity and cost reflective frameworks pose a great threat/barrier to the successful implementation of the natural gas ambitions as stated in the energy transition pan, among many other challenges
The Communique therefore revealed that in view of the foregoing, among others, the stakeholders resolved that
the Energy Transition Plan should be translated into an implementable action plan that is aligned with the National Development Plan and Medium-Term Expenditure Framework (MTEF), among others
It stated,”At the end of the National Dialogue, the participants, which is made up of state and non-state actors, rose with the following resolutions for the Executive, Parliament, National Council on Climate Change, Nigerian
Energy Transition Office, Federal Ministry of Environment, Federal Ministry of Budget and National Panning, Federal Ministry of Petroleum Resources, Federal Ministry of Mines and Steel Development:
“The Energy Transition Plan should be translated into an implementable action plan that is aligned with the National Development Plan and Medium-Term Expenditure Framework (MTEF) and is consultative and inclusive.
“There is a need to operationalise the Petroleum Industry Act (PIA) as it includes provisions that facilitate the use of gas as a transition fuel and decarbonisation.
“The federal government should be explicit on the delivery mechanism of the energy transition and how the green economy will translate to job creation for Nigerians.
“Transparency, accountability, and stakeholder engagement should be mainstreamed into the Nigeria energy transition plan/agenda with a strong monitoring and evaluation framework.
“The Energy Transition plan must be driven by a roadmap to define the modalities for funding and identify the risks and opportunities of the transition process.
6.Citizens’ ownership and awareness of the energy transition process are key. Public education strategy should be in pace to enable citizens to make informed decisions.
“Greater attention should be paid to the solid mineral sector as it holds potentia for the Nigeria Energy Transition plan because of the availability of strategic energy minerals such as lithium, cobalt, etc., in Nigeria.
“A framework to resolve the legacy conflict issues around solid minerals, particularly in the North East should be adopted to ensure that the ramp-up of the energy transition does not create further social upheaval.
“The energy transition should avoid replicating the errors from the fossil fuel industry. Host communities and environmental concerns must be taken seriously and incorporated into the energy transition pan and implementation.
“A Just transition should ensure the remediation of the degraded environment by divesting companies such as oil spillage.”
The Communique also stated that the stakeholder stressed the need for policy consistency to attract investment from key actors in the energy sector.
It called for an overhaul of Nigeria’s security architecture is necessary to create an enabling business environment and secure robust investment in the gas and other critical sectors in Nigeria.
It stressed the need for the government should provide an extensive plan/strategy on how the nation’s economy will be managed during the transition process in light of the projected diminished fossil fuel revenues as trade partners transition and companies divest.
The Communique added that financial instruments negotiated and accepted to fund the transition plan should align with Nigeria’s development goals and benefit future generations.
