Business
Adelabu woos investors to make additional investments to fast-track energy transition targets
…Says Development banks have leveraged over $1bn in renewable energy
By Matthew Denis, Abuja
In a bid to enhance electricity supply and distribution across the country, the Minister of Power, Adebayo Adelabu has wooed investors to make additional investments to grow Nigeria’s energy sector and achieve the targets for the nation’s energy transition targets.
Speaking at the ongoing significant Nigeria Oil and Gas Conference in Abuja, the Minister noted that Nigeria continues to embark on an extraordinary journey towards net zero carbon emissions, it is crucial to ensure that a more just, affordable, and sustainable energy system is adopted to address the industry’s most pressing challenges and unlock limitless potential in achieving energy security and a secure, sustainable, and equitable energy transition for Nigeria.
He stressed that “the power sector in Nigeria consumes the largest share of the country’s domestic gas supply. I am here to advocate for increased investment in Nigeria’s gas development to unlock the full potential of our power sector and achieve the Nigeria Energy Transition Plan.”
“The domestic gas-power market accounts for 60 percent (approx. 700 MMSCF Daily) of the total domestic gas supply. This gas quantity currently sustains Nigeria’s 4GW average grid generation capacity.
“In line with the Nigeria Energy Transition Plan vision 30:30, which seeks to achieve 30GW by the year 2030, our energy mix is projected to be 70% (or 21GW) thermal source (most likely gas considering the country’s gas potential) and 30% (or 9GW) renewable source.
“The power sector would require over five times what the industry currently utilises from the domestic gas market to achieve our 70% thermal energy target with gas-powered generation.
“Additional investments would be needed to increase the country’s gas production to achieve this level of gas supply to the power sector without compromising the export obligations. To this end, I call on the investors here today to strongly consider the investment in the further development of gas production in the country, especially our abundant unexploited Non-Associated Gas reserves,” he advocated.
Speaking further, Adelabu enumerated the Government’s commitment to ensure liquidity in the Nigerian power sector.
“To briefly spotlight the Federal Government of Nigeria’s recognition of the need for adequate liquidity in the Nigerian power sector to catalyse the much-needed investments across the value chain.
“The government recently introduced a cost-reflective tariff for the sector’s most served grid-tied customer segment. In addition, presidential approval was granted to resolve the power sector obligations to defray legacy debts to generation and gas companies.
“These actions speak to the government’s commitment to allowing efficient gas supply for the Nigerian power sector and ensuring there’s a clear line of sight for investors to recoup their investments in the country. I am confident that the Federal Government of Nigeria is committed to ensuring a viable and bankable power sector, and we are convinced that the industry is investment-ready,” he explained.
“To achieve our 30 percent Renewable Energy target, I urge you to consider the significant benefits of investing in renewable energy projects in Nigeria. Our country boasts abundant resources, particularly solar, wind, and hydro energy, providing a remarkable opportunity for sustainable growth. The renewable energy market has grown tremendously in the last decade, with over $1 billion leveraged by Multilateral Development Banks,” the Minister added.
He further emphasised that by channelling investments into these renewable sources, we can effectively meet our carbon emission targets while playing a crucial role in combating climate change.
“As demonstrated by our recently completed $550 million Nigeria Electrification Project, investing in renewable energy helps reduce carbon emissions, enhance energy security, and support economic development.
“Additionally, to complement the NEP, the $750 million DARES project would provide electricity to 2.5 million people in Nigeria by deploying solar home systems and mini-grids. These investments will propel Nigeria toward achieving its desired energy mix and transition targets.
“I reaffirm our unwavering commitment to achieving net zero emissions by 2060. I sincerely thank all participants and stakeholders for your continued support and collaboration. Together, we can chart Nigeria’s course toward sustainable energy security and robust economic development,” he said.
In demonstration of its leadership in the Sustainability space, leading financial institution – Fidelity Bank Plc – has emerged the first bank to publish its 2023 ISSB-Compliant Sustainability and Climate Report in the Nigerian banking industry.
Hosted on the bank’s website on 30 June 2024, the report provides insights into the Bank’s Governance, Strategy, Risk Management, Metrics and Targets around Sustainability and Climate-related risks and opportunities, Human Capital, Community Efforts, amongst others in the 2023 financial year.
“2023 marked a pivotal point in our sustainability journey. We became a signatory of the UN Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking (PRB) and the UN Women’s Empowerment Principles (WEP). These associations go beyond mere statements of membership – they actively integrate sustainability and climate-related goals into our core business strategy and daily operations.”
“We believe innovation and transparency are essential for building trust in our strategies and achievements. As we progress towards sustainability, we remain committed to our diverse stakeholders including our dedicated workforce, esteemed shareholders, and valued customers”, remarked Mr. Mustapha Chike-Obi, Chairman, Board of Directors, Fidelity Bank Plc in the report.
The document, which was prepared in accordance with the requirements of IFRS S1 and S2, highlights the bank’s achievements and aspirations as pacesetters within the financial services sector.
Speaking on the bank’s strategy on Sustainability and Climate change, Mr. Kevin Ugwuoke, Executive Director/Chief Risk Officer, Fidelity Bank Plc, stated, “Our 2023 Sustainability and Climate Report details our commitment to continually situate ESG and Climate-related risks & opportunities considerations at the core of our business operations and activities as we constantly explore means of meeting our corporate objectives in a manner that significantly reduces the negative environmental and social effects. We are glad to be the first bank to publish its report as this emphasizes our market leadership in the Sustainability space and we commit to do more to increase our positive impacts in all aspects of sustainability.”
It would be recalled that Fidelity Bank was recently listed amongst the top Nigerian banks in ESG performance according to a survey commissioned by the Independent Project Monitoring Company (IPMC) Limited.
To access the Fidelity Bank 2023 Sustainability and Climate Report, please visit https://www.fidelitybank.ng/documents/Fidelity_Bank_Sustainability_Climate_Report_2023.pdf
Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
The Nigerian Content Development and Monitoring Board (NCDMB) on Wednesday constituted a Joint Working Team (JWT) with the Gas Aggregator Company Nigeria (GACN) Limited on gas utilisation and commercialisation.
Speaking at the inauguration at the Board’s liaison office in Abuja, the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, acknowledged the correlation between the mandates of the Board and GACN, noting that the collaboration would stimulate gas market expansion and sustainable development and monitoring of the midstream and downstream activities as relate to the Nigerian oil and gas subsector through commercialisation opportunities.
The Executive Secretary, who was represented by the Director, Monitoring and Evaluation, Mr. Abdulmalik Halilu, announced that the aim of setting up the Team is to jointly develop a roadmap and strategise on new modalities for achieving collaboration and coordination among key stakeholders towards the effective commercialisation of Nigeria’s gas resources, thereby enhancing market penetration, fostering investment, and promoting sustainable growth in the Nigerian gas subsector.
While highlighting the responsibilities to the newly inaugurated Joint Working Team, he further charged members to work harmoniously to revisit, review and execute the Terms of Reference.
In his response, the Managing Director, Gas Aggregator Company Nigeria Limited, Mr. Chijioke Uzoho, stated that the Federal Government declaration of “Decade of Gas” is focused on transforming Nigeria into a gas-powered economy by 2030 through a series of policy reforms, gas supply projects maturation, gas infrastructure expansion, capacity building and robust investment attraction strategies.
He assured of initiating the mobilisation of compressed natural gas (CNG) facilities in the host state that houses the Local Content Board, “to encourage the use of CNG as automobile fuel in Nigeria,” adding, “we (GACN) need to develop favourable market-based policies and a natural gas transmission and distribution network; increase availability and access to CNG refueling stations and public awareness; begin with bi-fuel/dual-fuel automobiles in the state and country at large.”
Mr. Abdulmalik Halilu (NCDMB) and Mr. Chijioke Uzoho (GACN) will serve as co-chairpersons on the steering committee. Other members from the NCDMB include Ms. Tassalla Tersugh, Mr. Adedamola Aderibigbe, Mr. Ibrahim Sule and Mr. Brilliant Okon. Representatives from the GACN are Oche Agbese, Tari Mayor-Bright, Somkene Tassie, Muhammed Abdulhamid, Kufre Medo and Ekene Ebenebe.
The terms of reference of the JWT cover three key activity areas, namely, Market Development Initiatives and Strategies, Collaborative Coordination of Industry Events, and Industrial and Innovative Park Development.
By Esther Agbo
Next week, the two chambers of the National Assembly are expected to receive the 2024 Supplementary Appropriation Bill from the presidency, which includes funding for the presidential jet and proposed minimum wage.
The Chairman of the Senate Committee on Public Affairs, Yemi Adaramodu, confirmed this notion, noting that the supplementary budget is projected at around N6.6 trillion, though he said this figure is not official.
“We will receive the supplementary budget next week; N6.6 trillion is a bandit figure, it is not yet official.”
Upon approval, Nigeria will be managing four budgets in the 2024 fiscal year. Recently, the National Assembly extended the implementation period for the capital component of the N21.83 trillion 2023 budget and the N2.17 trillion 2023 supplementary budget to December 31, 2024.
Adaramodu also stated that the supplementary budget would include the national minimum wage. While the Senate has not yet received the minimum wage bill, he emphasised that any proposal from the executive would undergo public hearings involving key stakeholders before a decision is made.
Regarding the speculated N70,000 minimum wage, Adaramodu refrained from confirming or denying it, emphasising the need for caution to avoid controversies stating, “The minimum wage will be captured in the 2024 supplementary budget. Once we receive the bill, whatever the president submits is not necessarily what we will approve. We will hold public hearings involving all critical stakeholders to agree.”
On the proposed presidential jet, Adaramodu mentioned that the Senate would approve it if justified, despite public criticism.
“The request for the presidential jet has not yet come to us. If we can justify it, and we think it’s doable and will not affect budgetary provisions for Nigerians, we will approve it. We won’t let public criticism prevent us from approving something important,” he emphasised.
Adaramodu clarified that Senate President Godswill Akpabio was misunderstood when he said the Senate would approve the jet regardless of public sentiment. He explained that Akpabio meant that the Senate would approve it if necessary.
The proposed budget also includes funding for four projects: the Lagos-Calabar Coastal Road, the Sokoto-Badagry Road, and ongoing railway projects requiring federal funding.
The Minister of Budget and Economic Planning, Atiku Bagudu, informed a joint committee of the National Assembly that the budget would be partly funded by the N50 billion Presidential Infrastructure Development Fund (PIDF), currently held by the National Sovereign Wealth Investment Authority (NSWIA) and also a proposed $2.5 billion loan from the World Bank, he however revealed that the World Bank management is scheduled to convene soon to decide on the loan approval.
Bagudu also highlighted that the budget would support the rehabilitation of dams and irrigation schemes to boost production and allocate funds for Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) projects to enhance energy competitiveness.
Bagudu emphasised that the proposed bill would finance the rehabilitation and expansion of dams and irrigation systems to boost economic production. Moreover, the supplementary budget would allocate more resources to support Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) projects to improve energy competitiveness. The Trans-Sahara Highway will also receive funding from the supplementary budget.
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