The Nigerian Economic Summit Group (NESG) in partnership with the African Climate Foundation (ACF) has held a private sector stakeholder engagement towards a successful energy transition in Nigeria. The engagement is aimed at strengthening public-private engagement around implementing the Nigerian energy transition plan and supporting the development of the carbon market to drive socio-economic improvement.
Chief executive officer of the NESG, Dr Tayo Aduloju, said the engagement is strategic to galvanising the private’s participation in the energy transition for the attainment of economic growth. Represented by the facilitator of sustainability policy commission arm of the NESG, Dr Eugene Itua, Aduloju highlighted the significance of the session as a platform to engage both the private and public sectors in Nigeria’s energy transition journey.
In her overview of the project, a Public-Private Stakeholder Specialist & Thematic Lead Climate Change and Green Economy of the NESG’s Sustainability Policy Commission, Mrs Dolapo Kukoyi said that the project will ultimately bring about information sharing and policy reforms that support interventions that drive energy transition and inclusive development, by unlocking opportunities in the energy sector and carbon market, stimulating climate change resilience, and unlocking private sector and employment opportunities, research, development, and economic growth.
Mrs. Kukoyi further elaborated on the objectives, stating the aim to identify and inaugurate a national plan to create and foster an enabling environment for energy transition. She recounted the series of engagements that have taken place, starting from November 2023, which focused on informing stakeholders about the status of the plan and gathering perspectives.
In his presentation on the challenges of the Nigerian Energy Transition Plan, facilitator of the energy policy commission of the NESG, Dr Segun Adaju said bringing modern energy services to Nigerians would help to manage the expected long-term job loss in the oil sector due to the reduced global fossil-fuel demand.
Dr Adaju stated that some of the findings of the project revealed inadequate and high cost of financing, lack of political will and coordination among stakeholders. He also points to low levels of public awareness and enlightenment and absence of skilled capacity as key challenges.
He also frowned about the misalignment of public and private sector interests, absence of holistic policy frameworks and unfavourable enabling environment and policies as some of the challenges of the Nigerian Energy Transition Project.
He reiterated that the incentives required from the government to the private sector would include favourable monetary & fiscal policies, improved coordination among stakeholders and an enabling business environment.
On the status of the carbon market framework in Nigeria, director-general of the National Council on Climate Change (NCCC), Dr. Salisu Dahiru, highlighted the critical role of the private sector in driving the plan, with finance being recognized as the first pillar in mobilising necessary channels.
Dr. Dahiru emphasised the need for a clear leader to direct and coordinate efforts, as currently, there is a lack of coordination between the private and public sectors, with each trying to protect their interests. He further stressed the importance of awareness and advocacy, advocating for a common narrative that defines what it takes to be a practitioner in this field, with a focus on real specialists.