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The Minister of Power, Chief
Adebayo Adelabu said the surge in gas price has a profound impact on the power
generation subsector.
He said some of the key
consequences include increased cost of production, reduced reliability,
investment challenges, and environmental concerns when power companies resort
to using cheaper but more polluting fuels.
Adelabu said the surge affects
not only our economy but also the daily lives of every Nigerian citizen.
He spoke yesterday in Abuja at
the African Natural Resource and Energy Investment Summit (AFNIS 2023).
He said: "As we begin
conversation on power and renewable energy at this summit today, I want us to
discuss a matter of utmost importance that affects not only our economy but
also the daily lives of every Nigerian citizen; the impact of high gas prices
on power generation in Nigeria. In recent times, we have witnessed a
significant increase in the price of natural gas in the global market.
"This surge in gas price
has a profound impact on our power generation subsector. Let me mention some of
the key consequences which include increased cost of production; reduced
reliability; investment challenges; and environmental concerns when power
companies resort to using cheaper but more polluting fuels.
"I am using this medium
to seek your continued cooperation and collaboration so that we can together
implement government policies and programmes in the energy sector for the
well-being of Nigerians and the country's economic development. I also
encourage all of you to engage actively in the discussions, network with fellow
participants, and explore potential collaborations. Together, we can unlock the
full potential of Nigeria's energy sector and set the stage for a brighter,
more sustainable future.
"You will agree with me
that the Nigerian government is making commendable efforts in the power sector
to address the long-standing issues of electricity supply. While there is still
work to be done, the commitment to improving the power sector is evident.
"The initiatives to
expand access to electricity, upgrade infrastructure, promote renewable energy,
and encourage private investment are steps in the right direction. With
continued dedication and collaboration between the government, private sector
and other key stakeholders, Nigeria can look forward to a brighter future with
a more robust and reliable power supply."
Senior Director, African
Finance Corporation (AFC), Mr. Taiwo Adeniji said one of the key paths towards
the achievement of net-zero is significantly scaling up investments in green
projects.
He said it is estimated that
Africa requires about $250 billion annually to close the climate financing gap.
High volume of finance is required for sustainable infrastructure (clean energy
and transport systems, green buildings and others).
"One of the key paths
towards the achievement of net-zero is significantly scaling up investments in
green projects. At AFC we believe the most efficient way to transform the continent,
without further aggravating the climate situation, is to increase the amount of
green energy available within Africa and at the same time develop the
industrial capacity of the continent. . Africa indeed holds the key to the
world’s transition to a sustainable future, being the home to significant
proportions of the key transition metals, yet today it not only pays the price
for the climate indiscretion of the past, but also struggles in accessing the
funds it needs to change the course for a better future.
"It is estimated that
Africa requires about $250 billion annually to close the climate financing gap.
The bulk of these resources are expected to come from the private sector. Thus,
African governments have a responsibility to design and implement conducive
policies and regulations to attract private investments, particularly in
priority sectors for climate action and green growth."
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