Ekwueme University Cautions on  Energy Transition

The Alex Ekwueme Federal University and the World Resources Institute in Washington, United States, called for a careful transition away from oil in such a manner that it will not aggravate the present economic reality. 

They made the call in a webinar titled ‘Implications of Oil and Gas Transition to the Nigerian Economy.’ 

It was organised by the Centre for Climate Change and Development. 

The Institutions stated that most Nigerian states would not be able to survive without the oil proceeds from the federation account. 

It argued that transition should not be done haphazardly and recommended the use of gas as a transition fuel.
The Director of CCCD, Prof. Chukwumerije Okereke, who said the report was a multi-country project, warned that Nigeria and some other oil-dependent countries could lose many jobs and revenues from transiting away from oil.
The scholar noted that attempts to diversify the Nigerian economy away from oil and gas could exacerbate climate impacts in Nigeria, saying available statistics showed that Nigeria would be losing about 450 billion dollars to climate change by 2050.
He added that a carefully managed transition was important for Nigeria to transition away from fossil fuels. 

A research fellow, Mr Uchenna Nnamani, also spoke during the webinar. 

He stated that transiting away from oil and gas would have huge implications for sub-national governments in Nigeria.
He asserted, “Most states of the country depend heavily on revenue accruing from the federation account on a monthly basis to meet their obligations to their citizens. Sub-nationals seem to be vulnerable to oil and gas revenue.
“28 states if the federation got a bailout in 2021 with oil and gas revenue. With a drop in oil and gas revenue, states will find it difficult to cope.”
The report, he said, stressed the need for a careful transition away from oil and gas with emphasis on gas as the transition fuel.
He noted that the transition would come down with huge risk, fiscal vulnerability, economic breakdown, energy poverty and stranded assets.
He argued that transition could easily lead to huge revenue loss on the public service front, pleading that transition away from oil should be planned to avoid the worst.
Nnamani noted that the report placed a high premium on gas and solar energy, which are abundant in the case of Nigeria.