The Managing Director of ANOH Gas Processing Company Limited, Engr. Effiong Okon has reiterated Africa’s dilemma in the utilisation of natural gas.
He said that, even as the continent boasts of about eight per cent of the world’s gas reserve, it remains the most energy poor continent.
At the Gas Investment Forum 2024 recently in Lagos, Okon said that, without urgent reforms, it would be difficult to solve the energy crisis.
Over three billion people globally live in countries with less than 1,000 kilowatt-hours of power, underscoring the severity of the issue. Comparing trends in population growth and power requirements, the MD, who spoke on the forum’s sub theme, ‘Infrastructure Investment Session – Optimising Nigeria’s Gas Infrastructure and Incentivising”, noted that, while countries like China and India have transformed their energy landscapes, Africa has remained stagnant in its power production and distribution.
He highlighted the untapped potential of natural gas, especially in Nigeria, which sits on approximately 209 trillion cubic feet of gas, the largest reserve in Africa. However, only five per cent of its power potential is being harnessed, and 60 per cent of Nigerians now have access to electricity. According to him, this energy poverty is even worse in rural areas, where only 26 per cent of households have access to reliable power.
Okon further said that Nigeria’s current operational power capacity stands at just 6 gigawatts, far below the needs of its population of over 200 million. Many Nigerians still depend on generators for electricity, further contributing to the high cost and inefficiency of the power sector.
Despite these challenges, Okon said that gas is seen as a key element in transitioning away from coal and oil, both of which have higher greenhouse gas emissions. The use of natural gas could reduce emissions considerably, offering a significant opportunity for cleaner energy in Africa.
He noted that despite these challenges, Nigeria has embarked on several large-scale projects aimed at boosting its energy capacity. One of such projects is the ongoing construction of the Obiafu-Obrikom-Oben (OB3) gas pipeline, a key infrastructure that will link Nigeria’s eastern and western gas networks. Once completed, it is expected to significantly improve gas supply across the country.
The MD said that Seplat has also made bold investments in gas infrastructure development by committing $1 billion investment to building two gas processing plants (ANOH and Sapele) which will deliver close to 2 gigawatts of power to the Nigerian economy. This will contribute nearly 50 per cent of the country’s current power generation capacity.
Looking ahead, Okon said that, despite the slow progress, there is optimism about the future of Africa’s energy sector. He explained that the focus is now on moving from a “victim mindset” to a “player mindset”, where African countries actively engage in harnessing their energy resources to drive economic prosperity. As Africa pushes forward, natural gas is expected to play a central role in reducing energy poverty and supporting industrial growth.
He said that, while the challenges facing Africa’s energy sector are vast, the potential for growth, particularly through natural gases, is equally significant. He asserted that the continent must be allowed to develop its gas resources, not give in to Global North pressures to abandon them – a just and affordable energy transition.
Okon said that Nigeria needs significant infrastructure investment across the chain, and there is the need for supportive regulatory environment and pricing to make investment attractive. Good governance, he said, is key to raising the necessary finance and development of abatement technologies and offsets to achieve net zero.
He emphasised that investments being made today would be critical in shaping the continent’s energy future, and with the right reforms and strategic focus, Africa could overcome its energy deficits and become a major player in the global energy market.
