Article Summary
- As Tinubu assumes the presidency, he needs to focus on the further implementation of these energy policies.
- These policies were established by President Buhari to enable growth in Nigeria’s energy sector.
- These policies cover the oil, gas, and renewable sectors.
As Bola Ahmed Tinubu prepares to be sworn in as Nigeria’s president on May 29, there are policies in the country’s energy sector that he needs to pay special attention to in terms of implementation. These policies cut across the oil, gas, and renewable energy sectors and could also bring about massive investments and actual growth in the energy industry.
Tinubu will need to pay close attention to diversifying the energy mix, prioritizing reforms in the sector, improving transparency, increasing competition, and encouraging private sector investment. The highlighted policies were developed by the Muhammadu Buhari administration and need not be ignored by the incoming administration. These policies include;
Nigerian Gas Flare Commercialization Program (NGFCP)
The Federal Executive Council approved the Nigerian Gas Flare Commercialization Program on December 13, 2016. The objective of the NGFCP is to eliminate gas flaring through technically and commercially sustainable gas utilization projects developed by competent third-party investors who will be invited to participate in a competitive and transparent bid process. The commercialization approach has been considered from legal, technical, economic, commercial, and developmental standpoints. But there were several delays in the implementation of the program.
However, in 2022, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) streamlined the NGFCP to drive the flare auction and award process to a successful conclusion in record time through an accelerated delivery schedule. The renewed program will guarantee opportunities for existing applicants while expanding participation to new investors.
Petroleum Industry Act (PIA)
The Petroleum Industry Bill (PIB) was finally passed into the Petroleum Industry Act (PIA) on July 1, 2021. The Act seeks to provide legal, governance, regulatory, and fiscal framework for the Nigerian Petroleum Industry. The PIA also provides for the establishment, and development of host communities and other related matters in the upstream, midstream, and downstream sectors of the petroleum industry. If the PIA is implemented in the letter, it will help facilitate Nigeria’s economic development by attracting and creating investment opportunities for local and international investors.
National Gas Expansion Program (NGEP)
The National Gas Expansion Program (NGEP) was officially launched on December 1, 2020. The NGEP was established to introduce compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG) as energy options for industrial, transportation, and domestic use. The implementation of the NGEP will improve the life of Nigerians by creating jobs, building indigenous technical expertise, and stimulating other sectors of the economy. The NGEP was introduced to make CNG the fuel choice for transportation and LPG the fuel choice for cooking, captive power, and small industrial complexes. The framework for the implementation of the intervention facilities for the NGEP established by the Central Bank of Nigeria introduces the N250 billion intervention facility to help stimulate investment in the gas value chain.
National Renewable Energy Action Plan (NREAP)
The National Renewable Energy Action Plan was approved on July 14, 2016. The National Renewable Energy Action Plan sets out the implementation strategy for the National Renewable Energy and Energy Efficiency Policy (NREEEP) (2015). The plan provides an overview of concrete regulations, and laws, to be implemented to achieve Nigeria’s renewable energy targets. It provides details on the sets of measures and plans that would enable Nigeria to meet its 2020 and 2030 targets. The government will also seek to secure the country’s energy supplies through 2030 and beyond and provide a sound framework for businesses to develop new industries, providing jobs and cutting harmful greenhouse gases.
Nigeria Energy Transition Plan (NETP)
Nigeria launched its Energy Transition Plan on August 24, 2022. The plan is a home-grown, data-backed, multipronged strategy developed for the achievement of net-zero emissions in terms of the nation’s energy consumption. The Nigeria ETP sets out a timeline and framework for the attainment of emissions reduction across the Power, Cooking, Oil and Gas, Transport, and Industry sectors. The plan targets lifting 100 million Nigerians out of poverty and driving economic growth while providing modern energy services to the full population.