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STRATEGIZING FOR TRANSFORMATION TO CLEAN ENERGY IN THE CHANGING GLOBAL ENERGY LANDSCAPE: THE NCDMB INTERVENTION

INTRODUCTION

“Without a transition, a change is just a rearrangement of the furniture. Unless transition happens, the change won’t work,” said Williams Bridges. Transition, transformation, likewise change is unending and as well, constant. Our world was at a time celebrating firewood as best; change happened to us, we transitioned from firewood to coal and now, to fossil fuel. Yet, looking out for more efficient, renewable and eco-friendly form of energy. It is evident that the world is taking a bold move to the actualization of clean energy, jettisoning the use of fossil fuels — which obviously, is Nigeria’s major source of energy generation, likewise revenue.

In the light of this, this essay seeks to highlight the exigencies of clean energy to the globe and particularly assess the strategies of the Nigerian Content Development and Monitoring Board (NCDMB) to fast-track the country’s energy transition and progress; and concludes by suggesting more feasible strategies to sustaining the country’s energy industry amidst the change in the global energy landscape.

2.0. GLOBAL ENERGY LANDSCAPE: AN OVERVIEW

Evidently, the global energy landscape is experiencing major shifts, chiefly triggered by technological development and recent conventions and agreement aimed at protecting our ecosystem. The world is now tilting towards clean energy and waiving a good bye to fossil fuel. This ideological transition in the world energy industries could be adduced from the resolution reached by world leaders in the Paris Renewable Energy Agreement (COP 21), in 2015. Amongst other resolutions reached at the convention was the move to protect the eco-system and keep global warming at 1.5°C.

Moreover, this ongoing transition is one that could be logically envisaged. Fossil fuel is the largest source of carbon emission which affects the ecosystem. So, the adverse effects of its use necessitated the transition to clean energy. Clean energy is a natural form of energy produced through methods that do not release greenhouse gases or any other pollutants. It can be generated from sources like sunlight, wind, solar, etc. It particularly reduces reliance on fossil fuels and can mitigate greenhouse effects. In fact, this form of energy houses numerous benefits — to both the people and the environment.

On this note, countries around the world are partnering towards a low-carbon future by embracing a clean and renewable source of energy. A study by energy tariff comparison platform, Utility Bidder in 2021, reveals the top 20 countries already maximizing the potentials of clean energy. Norway was ranked first, closely followed by Brazil then New Zealand. Norway utilizes hydropower more than any other country around the globe and accounts for 45% of its supply alone. Likewise, Brazil is efficiently making use of biofuel and waste energy; and New Zealand currently make use of renewable energy which accounts for 42% of its total energy supply.

Conversely, as opposed to clean energy is fossil fuel, which is now described as the enemy of our ecosystem. Affirmatively, the Intergovemental Panel on Climate Change (IPCC) found that emissions from fossil fuels are the dominant cause of global warming. And interestingly, Nigeria is hooked on fossil fuels; with an estimated 5.3 trillion cubic meters of natural gas reserves, an estimated 37 billion barrels of untapped crude oil reserves and an estimated 379 million short tonnes of coal reserves.

Flowing from the above statistics and analysis, it is evident that countries around the globe are beginning to throw in their caps in the race of who becomes the first 100% renewable energy-oriented country, but this is not the case for Nigeria.

3.0. REFORM OR RECOIL: THE NCDMB INTERVENTION

“Action is the key to transition.” As a nation highly dependent on hydrocarbon, the changing energy landscape invites the NCDMB not only to rethink or re-strategize but to also swing into action — taking pragmatic steps to addressing the phenomenon. Though, the world is gradually moving towards clean energy, the NCDMB —according to its “Digest”— believes that there should be a balance between the use of fossil fuels and renewable energy. The NCDMB perception about the global energy transition is just a need for mix in global energy landscape rather than a swap or complete overhaul of the previous source of energy.

However, considering the fact that the transition to clean energy is inevitable, it became a point of duty for the NCDMB to make strategic moves to ensure that the potentials of the hydrocarbon industry is maximized and at the same time, better position the country’s energy industry for a quick transition to clean energy. The NCDMB passionate move for a balance in the use of fossil fuels and clean energy is crystal clear in how it enforces the NOGICD Act and other legal instruments to actualize key governmental policies peculiar to the oil and gas industry.

In keeping the Nigerian oil and gas industry running, the Board, in line with its 10-years strategic roadmap, is energetically pursuing its mandate of developing Nigerian content in the oil and gas industry which is projected to grow its level to 70% in 2027, despite growing changes in the global energy landscape. The board particularly boasted of creating 300,000 direct jobs in the oil and gas industry by 2027. The NCDMB further intensified its effort in developing regional oil and gas investments — a mainstay of our nation’s economy. In fact, the need to continue this development was stressed at the maiden Edition of the African Local Content Roundtable held on the 3rd of June, 2021 at Yenegoa, Bayelsa State. Unarguably, the NCDMB has greatly committed itself to partnership and collaboration with government and citizen-led initiatives in achieving this balance. Furthermore, the strategic attempt of the NCDMB to translate government policies into concrete reality has birthed many projects, some of which are: the Methanol processing plant in the Brass Free Zone; Ammonia fertilizer plant in Akwa Ibom State; LPG Cylinder manufacturing in Alero, Epe, Lagos State, LPG bottling plants and depots in 10 Northern states and many others. Aggregately, the NCDMB has spent up to $332 million to attract $3.7 billion investment into the industry with $228 million to catalyze gas development and utilization; $80 million in modular refinery and $24 million in other strategic interventions. Recently, the NCDMB in collaboration with Nigeria Export-Import Bank (NEXIM) deployed N14.6bn ($40million) fund to accelerate women’s inclusion in the oil and gas sector. These interventions resulted into skyrocketing major policies in the oil and gas industry — for instance, the Decade of Gas initiative. In the light of the foregoing, it is safe to say that the NCDMB has done a lot. But, its “a lot” is not enough in the fight for a balance in the global energy landscape. While the body is striving to keep its hydrocarbon industry working, it must not make the mistake of ignoring an open secret about the ongoing energy transition. It must embrace the development and better position itself for a quick transition to clean energy while maximizing the benefits of fossil fuel. Although, it seems antithetical, but it’s not impossible. The strategic ways by which this can be achieved are highlighted in the subsequent subheading. 4.0. RECOMMENDATIONS 1. The NCDMB should synergize with countries that are yet to transit to clean energy; helping them maximize the benefits in the hydrocarbon industry via feasible and beneficial resources exchange. With this, they will be interested in becoming active players in the industry — which is a plus for Nigeria.

2. The NCDMB should strive towards attaining a low level of emission from the oil and gas industry; in an attempt to make it more eco-friendly — just like the clean energy.

3. The NCDMB should instigate partnership and collaboration with the government; oil and gas experts; and private investors who have the financial capacity and intellectual fecundity to take the Nigerian local content development to its promise land.

4. The NCDMB should try to stake resources in clean energy as a form of experiment and weigh its comparative advantage with the oil and gas industry.

5.0. CONCLUSION

Energy makes a vital contribution to people’s quality of life and to the society. Hence, the need for transformation is felt in a number of advantages the clean energy houses. We cannot afford detesting a clearly blazed path and head for the bush. In essence, we cannot as a people ignore the huge opportunity waiting for us to be exhumed. The development and use of clean energy will improve the energy security and the quality of life, balance the economy, protect the environment and as well, promote climate resilience by reducing air and water pollution.

To the bottom line, the cut and dried dictum of Lord Denning, is hereby invoked, when the erudite jurists remarks that; “If we never do anything which has not been done before, we shall never get anywhere.” On this centre-pin, this essay concludes by reiterating that the intervention made by the NCDMB so far in the transition towards clean energy is that of a balance not reform in sustaining the Nigerian oil and gas industry.