• FG insists on PIA, gas-based economy critical
Nigeria’s Vice President Yemi Osinbajo has announced that the country is forming a coalition with other affected countries to halt attempts to stop fossil fuel funding.
Growing pressure towards zero emissions has dried up investment in fossil fuel-related projects, a development that would dramatically affect oil-dependent economies like Nigeria.
Osinbajo, who announced this at a virtual event to mark the 25th anniversary of the Sahara (Energy) Group, noted that while the wealthier nations and their institutions have banned all public investments in certain fossil fuel projects, including natural gas, they have could have a drastic impact on developing countries.
Osinbajo stated that most developed countries are no longer funding oil exploration: “The World Bank and other multilateral development banks are urged by their shareholders to do the same. The AfDB is increasingly unable to support large natural gas projects due to shareholder pressure from its European members. Almost two weeks ago the UN Secretary-General urged: “The countries should stop researching and producing new fossil fuels and switch subsidies for fossil fuels to renewable energies.
“I will urge local energy companies to join the urgent advocacy needed to prevent the disaster that would result from the definition of oil and gas projects.”
He announced that the passage of the Petroleum Industry Bill and Nigeria’s gas initiatives would transform the country into a gas-based industrial nation.
Osinbajo, who equally believes in a better run petroleum industry through legislation, said the federal government’s gas initiatives include efforts to encourage investment in gas production and optimize the country’s vast gas potential.
“With the Petroleum Industry Act 2021, we are starting the brave new world of the oil and gas industry on site. In doing so, he is building on the very successful initiative of 2020 as the Year of Gas.
“The main objective of the passage of the Petroleum Industry Bill and the gas initiatives mentioned above is not only to transform Nigeria into a gas-based industrial nation through an accelerated gas revolution, but also to help create a better-run petroleum industry in which both the people of Nigeria and investors can create value alike, ”he said.
He noted that the efforts of indigenous oil companies continue to be commendable and stressed that there is a visible impact of Nigerian companies on the oil segment of the country’s energy industry.
“Nigerian companies have demonstrated the ability to operate and finance oil and gas facilities. Within this group of patriotic local investors, Sahara has consistently paved the way as an industry leader not only in the oil sector but also in the energy sector, ”he added.