In a recent oil and gas report following Nigeria’s Decade of Gas plan policy dialogue, startling revelations have emerged about the struggling gas-to-power projects in Nigeria.
Despite an estimated $80 billion investment requirement for these ventures, only a meager $1 billion has been committed by investors.
The report suggests this dire situation is primarily attributed to the global shift towards environmentally sustainable and climate-friendly projects.
Organized by the African Initiative for Transparency, Accountability, and Responsible Leadership in partnership with the Natural Resource Governance Institute, the policy dialogue outlined the challenges facing the gas sector.
Stakeholders at the event expressed concerns over decreased financing, increasing project risks, and sustainability issues.
While acknowledging the difficulties, the report offers a glimmer of hope. It suggests potential sources of funding, such as international development banks and the innovative African Energy Bank.
To attract investments, stakeholders recommend comprehensive risk assessments for gas projects to facilitate credit allocation.
The report also calls for increased advocacy at COP28 for funding technologies that can reduce natural gas emissions.
Moreover, it recommends a strategic shift towards prioritizing one or two profitable brown gas projects instead of the currently planned ten, aiming for marginal success in the sector.
As Nigeria grapples with these challenges, the debate on balancing energy needs with environmental responsibility intensifies, highlighting the complex decisions that lie ahead for the nation’s energy future.