Analysis

Communique of the 16th NAEE/IAEE Conference

The 16th Annual International Conference of the Nigerian Association for Energy Economics (NAEE/IAEE) was held from 9th to 11th July 2023 at the PTDF Conference Centre, Abuja with the theme: “Energy Evolution, Transition and Reform: Prospects for African Economies”.

The conference was well attended, with over two hundred and fifty participants and invited guests, drawn from the energy and power industries, government, and academia, and leaders of thought in the energy sector in Africa and Nigeria. These included the Secretary General of the African Petroleum Producers Organisation, Dr Omar Farouk Umar, who delivered the Keynote Speech; Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Engr Gbenga Komolafe, Chairman of the Opening Plenary and the Special Guest, Prof. A.S. Sambo, former Director General, Energy Commission of Nigeria. Others included past presidents of NAEE, Prof. Wumi Iledare, Prof. Adeola Adenikinju, and Prof. Akin Iwayemi. NAEE presented the following awards during the Conference.

Awards

  1. 2023 NAEE AWARD FOR OUTSTANDING ADMINISTRATOR OF A

PUBLIC SECTOR ENERGY ESTABLISHMENT:

Simbi Wabote, ES Nigerian Content Development and

Monitoring Board (NCDMB)

  1. 2023 NAEE CORPORATE AWARD FOR OUTSTANDING PRIVATE

SECTOR ENERGY BUSINESS IN NIGERIA:

First Exploration &Petroleum Development Company Ltd

  1. 2023 NAEE OUTSTANDING ENERGY CORRESPONDENCE IN

NIGERIA:

Kingsley Jeremiah, Nigerian Guardian Newspaper

  1. 2023 NAEE FELLOWSHIP AWARD FOR OUTSTANDING

CONTRIBUTIONS TO ENERGY ECONOMICS IN NIGERIA

  1. a) Dr. Reginald Stanley, FNAEE,
  2. b) Professor Ben Obi, Ph.D. FNAEE

Over seventy papers were presented during the Opening Ceremony, two plenary sessions, a Petroleum Roundtable, and twelve concurrent sessions. All sessions were characterised by stellar presentations and robust discussions. Happily, this year’s conference witnessed the return of the students’ paper competition.

Whilst acknowledging the reality of the climate crisis, and the need for strategic activities towards achieving a net-zero carbon neutral future, the generality of the presentations centred around the need for appropriate energy transitions, acknowledging that for African countries, the path to netzero emissions had to be premised against the needs of the hundreds of millions of the energy poor, including about 85 million people currently living without modern energy in Nigeria. The challenge for African countries was, therefore, how to prioritize continued economic growth and sustainable development of its people whilst at the same time working towards the inevitability of a net-zero carbon emission future. The Conference, however, emphasized that net zero was not a zero-carbon future, and that fossil fuels, notably natural gas, would continue to be a part of the global energy mix.

Conference Resolutions

  1. In the light of decreased global funding for hydrocarbon activities worldwide, Africa needs to realise that funding for the development of its non-renewable energy resources needs to come from Africa. Therefore participants welcomed the initiative between Africa Petroleum Producers Organization (APPO) and the Afrexim Bank to establish the African Energy Bank, which shall provide funds for oil, natural gas, and other energy projects, and NAEE looks forward to its imminent creation.
  2. The participants agreed that there is an urgent need to implement Nigeria’s chosen path for energy transition, particularly as domestic natural gas consumption expands and becomes an integral part of the energy mix in the transitioning path to Nigeria’s carbon neutral future.

Delays could negatively impact on Nigeria’s economic development.

  1. Participants recognised that the Nigerian oil and gas sector had a pivotal role to play in achieving Nigeria’s Energy Transition Plan, and that partnership with the renewable energy sector to jointly drive implementation, will help ensure its success.
  2. Participants acknowledged and emphasised the need for a functional electricity sector with sustainable, available, and affordable electricity supply, stressing that development and true industrialisation without regular electricity is a mirage.
  3. Political stability is essential, as are the continuity of government reform and development programmes, which prioritise economic prosperity and the need for meaningful sustainable economic and national development.
  4. Participants hailed the passage and ongoing implementation of the Petroleum Industry Act, noting that continuous growth, strengthening, enablement and stability of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (the Authority) are vital to the growth of Nigeria’s energy sector.
  5. Nigeria needs to scale up the utilisation of her substantial natural gas resources for the development of her people; therefore participants recommended the speedy implementation of the provisions in the Petroleum Industry Act that establish the framework for natural gas utilisation, and where needed, any amendments to the law that will create an attractive investment climate.
  6. The hopes of the rural energy poor lie in the use of off gird renewable energy sources; therefore, NAEE lauds the initiatives of the Nigerian government to electrify communities outside the electricity grid network through the Rural Electrification Agency. NAEE recommends these and other similar initiatives as measures that will both alleviate the poverty of its citizens while counterbalancing any current and anticipated increased use of natural gas resources, hereby working towards the attainment of carbon neutrality and net zero.
  7. NAEE believes that the current huge burden of subsidy removal on Nigerians can be alleviated by the rapid expansion of measures to speed up the utilisation of natural gas as a substitute for premium motor spirits (PMS). These include promoting the activities of the Natural Gas

Expansion Programme, the conversion of engines to run on compressed natural gas (CNG), and the speedy deployment of CNG stations all around the country.

  1. The present crushing effects of the removal of PMS subsidy need to be alleviated through measures such as mass transportation programmes and others that are directly targeted at most of the affected Nigerians.
  2. The long-overdue rehabilitation of existing refineries remains a necessity, to promote diversification and guard against monopoly power, noted conference participants.
  3. Continuous investments in all energy infrastructures are imperative for the emergence of a strong energy sector.

Prof Yinka Omorogbe, SAN, FNAEE

President                                                                               Prof Ben Obi, FNAEE
Vice- President (Conferences and Publications)

Comment here