Rapid population growth and industrialisation are projected to strongly drive energy demands —including for fossil fuels — across Nigeria and Africa, according to the Chief Executive of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe.
In his keynote address at the maiden annual conference of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) in Abuja on Tuesday, Komolafe said that in the next two decades, the situation is expected to lead to an increase in job opportunities with energy demand by 2040 across Africa going up by 30 percent than the present figure, which is a 10 percent increase in global energy demand.
“This fact signals an opportunity for the oil industry in Nigeria to focus on meeting future hydrocarbon energy demand in a sustainable manner”, he said.
He stated that various jobs would be created through the implementation of gas-centric policies such as the Natural Gas Expansion Programme, the Midstream and Downstream Gas Infrastructure Fund and the Domestic Gas Delivery Obligation.
The NUPRC helmsman said that these policies would spur investment, which would expand the critical gas infrastructure to entrench Nigeria as a gas hub in-country, across Africa and eventually Europe.
He then explained: “Some major in-country projects include the 614km Ajaokuta-Kaduna-Kano pipeline will supply gas for power, domestic use, and industrialisation along the Northern corridor, the Escravos to Lagos Pipeline-2 will supply gas for power, domestic use, and industrialisation along the South-West corridor, the Obiafu-Obrikom-Oben (OB3) pipeline will supply gas for power, domestic use, and industrialisation along the South-South corridor. LNG Train 7, the OCP-NSIA ammonia plant in Akwa Ibom State and Nigeria-Morrocco pipeline aim to utilise the nation’s rich gas resources to meet customer demands across Africa and Europe, this will invariably lead to the creation of more jobs in-country”.
He said that the Petroleum Industry Act 2021 together with its corresponding regulations and government policies have the capacity to build a resilient and sustainable oil and gas industry, adding that that would latch onto critical socio-economic factors across the world to increase gas production, build a robust gas infrastructure that would entrench Nigeria as a gas hub across Africa and Europe.
“All these will in turn create more jobs and attract investment across the petroleum value chain for the benefit of the Nigerian workforce. Ultimately, as the energy transition draws closer, the government will develop robust Just transition policies that will provide guidelines on how oil and gas professionals can leverage on their core technical expertise to pivot to other clean energy sources”, he further said.
Komolafe warned of threat to job security as, in the next few years, most International Oil Companies might divest from onshore oil and gas assets due to poor return on investment as a result of crude oil theft.
“However, it is expected that indigenous players would leverage on this to recruit experienced professionals who will in turn grow local capacity. In addition, indigenous players are urged to take advantage of the predictable licencing rounds as enshrined in the PIA and relevant regulations to form big mega companies that will grow in-country capacity and also expand outside the shores of Nigeria”, the NUPRC Chief Executive counselled.
He also spoke on Just Transition, describing it as a “critical enabler that can affect the Nigerian workforce during this time of energy transition phase”, explaining that the philosophy “ensures environmental sustainability as well as decent work, social inclusion, and poverty eradication.
“Given that Nigeria has a high poverty rate, the importance of just transition principles cannot be overemphasised. The Host Communities Development Trust and the Local Content Act have the potential to guarantee longevity of the oil and gas industry during these changing times. To stay competitive and relevant the Nigerian worker will have to upskill in this regard.
“As Nigeria and other African economies look to industrialize to meet the needs of rapidly growing and urbanizing populations, a rise in energy demand could leave many countries facing energy supply challenges. Hidden in the challenges that have been highlighted through the course of this address, are significant opportunities. Nigeria has the chance to leverage the energy transition to lead in the creation of renewable-energy businesses that will help to meet the growing energy demand on the continent and create new revenue streams and jobs”.
Komolafe said that fossil fuel-based companies have been targeted as the main culprit causing environmental pollution and stalling the move towards clean energy or zero carbon emission. He stated that the clamour for clean energy has altered the world’s energy landscape and caused huge investment de-prioritisation towards fossil fuels as the dominant fuel of choice.
“Historically, it is important to note that the policy drivers of previous energy transitions were developed after the technology had proved to be both efficient and economical; these factors caused a natural transition towards the new energy technology based on the fulfilment of simple techno-economic principles”, he said.
