Is Nigeria’s transition from fossil fuel-dependency on track?

As more countries are looking to stop export financing for fossil energy sources, Nigeria's Minister of Finance, Budget and National Planning says the government is committed to diversify its economy away from external vulnerabilities. Kola Karim, Chairman of Shoreline Group and Steve Osho, Co-Managing Partner at Comercio Partners join CNBC Africa to discuss Nigeria's preparedness to transition to more sustainable energy sources. The conversation around moving away from fossil fuels to cleaner energy sources has been gaining momentum globally, with seven European countries deciding to halt export financing for fossil fuel projects. This shift is crucial as countries grapple with the effects of greenhouse gas emissions and strive to find more sustainable and environmentally friendly energy solutions. Steve Osho, Co-Managing Partner at Comercio Partners, highlighted the importance of diversifying energy sources to maximize resources and achieve economic stability. He emphasized the need for countries like Nigeria and India to carefully plan their transition from fossil fuels to clean energy to minimize the impact on their economies. As Nigeria heavily relies on revenue from oil sales, any sudden shift away from fossil fuels could lead to economic challenges such as increased unemployment and funding deficits for infrastructure projects. However, with proper planning and investment in alternative revenue sources like agriculture, infrastructure, and mining, Nigeria can successfully navigate the transition towards cleaner energy while ensuring economic stability. Kola Karim, Chairman of Shoreline Group, expressed concerns about the potential decrease in investments in oil and gas projects on the African continent due to the changing global financing landscape. Nations like Nigeria need to accelerate their efforts in diversifying their energy mix and reducing dependence on fossil fuels to attract investments and achieve sustainable economic growth. Karim emphasized the importance of passing crucial legislation like the Petroleum Industry Bill (PIB) to provide clarity and incentives for investors in Nigeria's energy sector. While Nigeria faces challenges in transitioning from fossil fuels, it also possesses opportunities to leverage its abundant gas reserves and emerging renewable energy sources like solar power to drive economic growth and energy sustainability. By focusing on a three-pronged approach of passing key legislation, promoting gas utilization, and investing in renewable energy technologies, Nigeria can position itself as a regional leader in sustainable energy development and secure its energy future in a rapidly evolving global energy landscape.