The Nigerian National Petroleum Company Limited (NNPCL) has set itself up to lead Africa’s transition to a more sustainable energy source.
The Chief Executive Officer and Group Managing Director, NNPCL, Malam Mele Kyari, made this announcement during his lecture at the 30th Convocation of the Federal University of Technology Minna, Niger State.
The lecture titled “Energy Transition & Energy Accessibility – The New Paradigm” focused on how NNPCL can transit to low-carbon energy and renewables.
According to Kyari, the national energy company is expanding its use of natural gas and infrastructure backbone from Ajaokuta in Kogi state to Kano via Abuja and Kaduna.
In addition, he stated that this massive pipeline will receive fuel from the Obiafu-Obrikom-Oben (OB3) and Escravos-Lagos Pipeline System (ELPS) gas pipelines through the Oben node in Edo State and transport 2 billion standard cubic feet of natural gas to power plants and industrial off-takers in Abuja, Kaduna, and Kano.
He went on to say that as a national oil company and a major participant worldwide, NNPCL is prepared to transition to renewable energy.
“We are taking a firm position in this transformation by institutionalizing the required enablers for success,” the GMD hinted.
As an Energy Company of Global Excellence, NNPCL has changed the NNPCL R&D Division into a Renewable Energy Division, Kyari stated.
He further said NNPCL welcomes collaborative relationships with academics and business professionals who may conduct fruitful research and innovation in the energy sector.
He asserts that oil will continue to play a significant role in the global energy mix of the present and the future.
However, Kyari pointed out that as the shift to less expensive energy picks up speed, particularly in developed nations, oil companies must continually boost operational effectiveness and cut costs to be competitive.
He said earlier in the presentation that Africa is particularly blessed with an abundance of sunshine, which may enable a significant development of renewable energy and place Africa on the map of the world’s energy-sufficient regions.
Kyari said “what Africa needs is energy transition that addresses energy poverty across the continent and supports the use of comparative and cheaper available energy resources in Africa” in light of the financial strain required to move at the same rate as the rest of the globe.
Benefits of the New NNPCL
Transparency and good governance
Nigeria’s oil and gas company, NNPCL, is set to be privatized with the sale of shares to the public, like Petrobras of Brazil and Aramco of Saudi Arabia. Prior to the transition, political interference, lack of transparency and accountability, and bureaucracy shrouded the activities of the Company. The new development must be approved by the government and endorsed by the National Economic Council on behalf of the federation.
Increased revenue to the government
The transition is expected to increase the revenue base of the government. NNPC would soon emerge as the fifth-largest gas-producing in the world, adding that the new legislation would provide business opportunities that would enable it to earn more revenue for the country.
Speaking on the development, Dr Muda Yusuf, Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), said the transition would now absolve the state-owned oil company from political interference and bureaucratic bottlenecks.
“We will see an NNPC that is independent and autonomous and an NNPC that would be decoupled or insulated from political interference and bureaucracy,” Yusuf said.