Mrs. Audrey Joe-Ezigbo, Co-Founder and MD, Falcon Corporation Ltd.
…Natural gas is Nigeria’s bridge fuel and a catalyst for industrial development with economic advancement
-Felix Douglas
Keynote speaker of 14th Emmanuel Egbogah Legacy Lecture Series (EELLS), Mrs. Audrey Joe-Ezigbo, Co-Founder and Managing Director, Falcon Corporation Ltd, presented a paper on Decarbonization Era, Natural Gas from the Perspective of Energy.
Ezigbo stated clearly that Nigeria is a resource rich nation, yet the country struggles with energy. “The world is racing towards decarbonization but Nigeria is far behind.” Over a decade, there has been shift and a focus on energy transitions, which is reality. Countries are reshaping their energy strategies, there are different things driving the conversations leading to geopolitical factors and economic risk.
Globally, there’s a surge in investments in renewable with a serious momentum consensus. Presently, about forty nations have signed on to non proliferation treaties to stop using fossil fuels. As countries are leaving fossil fuels for renewable and clean energy, but on the contrary, the reality is in the last few years, some are increasing their reliance on fossil fuels.
Funding to Nigeria and Africa on fossil fuel projects has ceased. But the US, a leading global producer of oil in the world is prioritizing oil with a lot of increase in oil and gas reserves.
There are energy security concerns around the globe as countries like Canada, Brazil, Argentina and others are focusing on both oil and gas driven by current realities.
Speaking further Ezigbo noted that China and India are doing a lot with renewable while also focusing on fossil fuel. India on his part is increasing investment in coal.
Some countries leverage on hydrocarbon resources to engender industrialization. Nigeria can also leverage on its own resources. However, it is imperative for the country to have clean equitable energy framework for the benefit of its people.
The OPEC plus countries are increasing their production targets and in the next 10 to 15 years, they will be increasing oil production which will boost economic growth and increase export revenues.
Like these countries, Nigeria needs more export revenues. The reality is that there is growing investment in renewable and hydrocarbon.
Notwithstanding, natural gas demand is going to rise in 2050 with huge supply and Nigeria needs to focus on this trend. There is ongoing co-existence between these fuel sources on the global landscape.
In the light of what is happening around the globe concerning energy, how can Nigeria benefit without being left behind?
There has to be energy equity for equal distribution such that no sector of the society will lag behind in the process, no matter the economic status, energy should be accessible, affordable, reliable and sustainable.
No group should be disproportionately harmed; it should be about social and energy justice for all.
According to the Falcon Corporation MD, it has been discovered that communities that are marginalized are low income indigenous people where drilling is done and they bear the brunt.
Still on energy equity, there are communities suffering from gas flaring with health and environmental issues, while same gas resources are used by industries and create clean energy for cooking, heating and cooling applications. Energy is beneficial to some people while others suffer from health hazards.
As new investments are brought in from energy equity point of view, it’s also important to engage with the communities by sending right messages to build sustainable solidarity.
She lamented that Africa has huge world’s population with no access to power and clean energy. The continent has young population in the globe. Worse still, in Nigeria, there is entrepreneurial capacity with people trying to showcase their strength but can’t go beyond their environment. This is dragging the nation backward hence educational and economic opportunities are constrained.
Nigeria is selfish to itself! How come a country that has over 210 trillion cubic feet (tcf) of natural gas reserves, the largest in Africa, yet there is energy deficit?
Nigerians are still cooking with firewood relying on diesel for power; the country has not been able to translate its wealth into prosperity. What is the point of having huge reserves of gas?
As part of its contribution to development in the oil and gas industry, Falcon Corporation has distributed over 37 billion cubic feet (bcf) of gas enabling industries to create employment.
Natural gas is Nigeria’s bridge fuel and a catalyst for industrial development with economic advancement. There has to be strategic, deliberate intentional moves to solve industrial bottlenecks and challenges around rural electrification, energy poverty in urban areas. Natural resources should be a blessing for the county.
The former Nigerian Gas Association (NGA) President revealed that Nigeria is using only about 25% of its gas production in-country and the bulk of it goes to the power sector which has structural issues, liquidity and technical challenges. Although flaring numbers have reduced, the country still flares about 6 to 7% of its gas. In 2024; it flared over 192 billion standard cubic feet of gas which could have been channeled into the industry and power sector.
What Gas can do for Nigeria
Natural gas is a tool and resource wealth that engenders prosperity to enable reliable electricity.
Currently Nigeria’s generating capacity is about 14 megawatts, any attempt to increase it often crashes, which is not palatable for a country with over 200 million people.
Ezigbo advised that Nigeria can provide natural gas for feedstock, fertilizers and petrochemical plants for gas based industries. Heavy Industries through gas will create huge employment opportunities for unemployed youths.
Natural gas can be used to catalyze, enhance trade and regional integration. For instance, West Africa gas pipeline project is ongoing, it will increase consumption, trade across the region leveraging also on African continental Free Trade Agreement boosting cross border supplies with other African nations.
How Nigeria can Harvest the Gas Advantage
The country has to recognize the gas advantage. How can pipelines be built? How do we enable distribution infrastructure to be built? Currently, the AKK 640 kilometers project is ongoing but the pipeline networks should be a viable project with effective distribution networks and technologies to take gas to hinterland.
Challenges
Ezigbo was of the view that despite the passing of the Petroleum Industry Act (PIA), policy, legislation and regulation are not seamless. There are challenges in terms of implementation, and disruptions subtly replicating things that brought issues to the industry.
There are still issues with flaring. Flaring technologies that will curb gas flare in order to commercialize and take it to remote areas is yet to be resolved.
The industry is still struggling with issues of corruption, weak institutions and lack of accountability.
The country needs to address energy poverty and security concerns. What does the landscape of investment looks like in Nigeria? Efforts have been made by the government, but it should focus on the right direction.
For decarbonization, natural gas is the transitional fuel for Nigeria and Africa. There is need for strategy and pathway to capitalization and energy equity.
If Nigeria prioritizes decentralized gas infrastructure with mini grids in different communities, channel LPG into industries, it will address some issues. Policy reform is key with systemic collaboration between the private sector and government in the investing world. Gas projects are capital intensive because it takes time to develop hence fund is key to make it viable.
Notwithstanding, there is light at the end of the tunnel as true giant of Africa, a country where there is availability of energy across every nook and cranny. Nigeria should imbibe rules, regulations with equitable consistent framework for a bright future.
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