By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has projected that its Industry Sustainability Initiative (NISI) will create over $575 billion in capital investment opportunities for Nigeria through the decarbonisation of operations.
According to a statement, NMDPRA, while hosting a session on Nigeria’s Pathway to Energy Sustainability and NMDPRA’s Role at the UN Climate Change Conference 2023 (COP28) in Dubai, UAE, x-rayed Nigeria’s journey towards reducing carbon emission and achieving Net Zero by 2060.
Speaking at the event, Mr Mustapha Lamorde, the authority’s Executive Director on Health, Safety, Environment and Community (HSEC), said the investment would be created through infrastructure and technological development, green economy improvement, stakeholder management, and human capital development.
He said NISI which was created in line with the Global Sustainability Development Goals (SDGs 3, 7, 8, 9, 11, 13, 16, 17) was geared towards achieving Nigeria’s 2060 Net Zero commitment in the midstream and downstream petroleum industry.
He gave a breakdown of the investment opportunities as highlighted sector by sector – $272 billion in power, $127 billion in infrastructure, $96 billion in oil and gas processing optimisation, $80 billion in industry and $2.8 billion in clean cooking.
Mr Larmode said that achieving the target required strong government commitment and collaboration with the private sector using technological innovation.
Adding his input, Mr Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association (ARDA), said the NMDPRA and the Nigerian Government should harness funding opportunities for gas projects from international financiers dealing with agriculture, saying that it was necessary because of the key role being played by gas in the sector.
He urged the NMDPRA as the regulator of the Midstream and Downstream industry, to develop a decade-by-decade plan to decarbonise the mid/downstream with bankable projects that would elicit finance from foreign donor agencies.
He also emphasised the importance of developing and including young people in the decarbonisation drive, as they were expected to play a major role in implementing the initiatives in the future.
Mr Mansur Alkali, Authority’s Executive Director, Midstream and Downstream Gas Infrastructure Fund (MDGIF), explained that the MDGIF which was set up under section 52 of the Petroleum Industry Act, was pivotal towards accelerating investments along the gas value chain.
Akali said that the MDGIF was neither a grant nor a loan, but rather an investment initiative designed to de-risk investments through partnerships with private sector players to build the necessary infrastructure to harness the country’s vast gas resources.
Similarly, Mr Abel Nsa, Senior Technical Adviser on Transition Energy to the Minister of State, Petroleum Resources (Gas), Mr Ekperipe Ekpo, said the Host Community Development Framework as inaugurated by the commission for upstream operations amongst other benefits would ensure oil and gas assets were adequately protected.
Mr Nsa also said that the framework would ensure uninterrupted production and supply of petroleum products which were critical to midstream operations.
He added that the Decade of Gas initiative of the government would also guarantee the availability of gas for domestic utilities.
According to him, discussions are currently ongoing with upstream gas producers to deliver on the mandate.
Dipo Olowookere