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Osinbajo: Petroleum Industry Act will transform Nigeria’s energy sector

Osinbajo: Petroleum Industry Act will transform Nigeria’s energy sector
August 24
15:10 2021

Vice-President Yemi Osinbajo says the Petroleum Industry Act and the country’s energy initiatives will help transform Nigeria into a gas-based industrialised nation.

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He said they would also create a better-managed petroleum industry with more value addition for both investors and Nigerians alike.

Osinbajo spoke on Monday at a virtual event to commemorate the 25th anniversary of Sahara (Energy) Group.

Speaking on the gas initiatives being implemented by the President Muhammmadu Buhari-led administration, the VP said: “Locally we launch into the brave new world for the oil and gas industry with the Petroleum Industry Act 2021.

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“And this happily converges with the launch of the Year 2020 to 2030 as the ‘Decade of Gas Development for Nigeria’. This is a follow-up to the highly successful initiative of the Year 2020 as the Year of Gas.

“The main goal of the passage of the Petroleum Industry Bill and the gas initiatives aforementioned is to transform Nigeria not only into a gas-based industrialized nation through enhanced accelerated gas revolution, but also to help create a better-managed petroleum industry where both the people of Nigeria and investors alike can extract value.”

According to Osinbajo, the next 25 years will be defining for the energy industry.

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He reiterated the need for a just transition to zero-emission, as well as more advocacy to stop the defunding of gas and fossil fuel projects in developing countries.

Explaining further, he said: “Already the wealthier nations and their institutions have banned all public investments in certain fossil projects, including natural gas.

“Examples include the European Union (EU), the United Kingdom, Germany and Denmark, as well as specific institutions such as the Swedfund from Sweden, Norway’s Sovereign Wealth Fund, the largest in the world, CDC, the development finance institution from the UK, the European Investment Bank, and the Investment Fund for Developing Countries from Denmark.

“The World Bank and other multilateral development banks are being urged by their shareholders to do the same. The AfDB is increasingly unable to support large natural gas projects in the face of shareholder pressure from their European members.

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“Barely two weeks ago, the UN Secretary-General made a strong call, that ‘Countries should end all new fossil fuel exploration and production, and shift fossil fuel subsidies into renewable energy.’”

The VP said the federal government was building coalitions with other affected countries to urge a just transition to zero transmission.

“I will urge indigenous energy companies such as yourselves (Sahara Group) to join in the urgent advocacy that is required to prevent the disaster that would result from defunding oil and gas projects,” he added.

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