Timipre Sylva: Gas is the emphasis of Nigeria's energy transition

Nigeria's Minister of State for Petroleum Resources, Timipre Sylva, recently shared insights on the country's energy transition plans at the Energy Summit hosted by Seplat Energy. Sylva emphasized that while renewable energy is important, it is not the only pathway to a successful energy transition. He highlighted Nigeria's need for fossil fuel assets to support base load energy sources for industrialization, addressing energy poverty, and ensuring reliable power supply. This stance deviates from the approach advocated by some developed nations, where renewable energy is often seen as the primary solution for transitioning to a more sustainable energy system. Sylva stressed the importance of a diversified approach to energy transition, tailored to each nation's specific circumstances and goals. According to Sylva, Nigeria rejects the notion of a single pathway and instead embraces the concept of 'just energy transition'. This approach considers the environmental, social, political, and economic objectives of the transition in designing a suitable energy mix. Recognizing the potential challenges posed by a structural decline in oil prices and associated fiscal vulnerabilities, Nigeria is prioritizing gas as a crucial component of its energy strategy. Gas is positioned at the core of the country's energy transition, serving as both a transitional and destination fuel. Sylva outlined plans for gas to play a significant role in Nigeria's energy mix by 2050, leveraging the nation's abundant gas reserves. To support this vision, the Petroleum Industry Act 2021 includes incentives to drive gas development, distribution, and utilization. Moreover, the National Gas Expansion Program launched in January 2020 aims to promote domestic gas consumption. Nigeria's proven gas reserves are poised to meet current demand and support the construction of new gas-fired power plants, contributing nearly 6,000 megawatts of capacity by 2037. This strategic focus on gas reflects Nigeria's commitment to enhancing energy security, promoting sustainable development, and aligning with global efforts to achieve net zero emissions by 2050.