The Nigerian energy sector is plagued by policy inconsistencies and insecurity, which are hindering its growth and development, stakeholders have warned.
The group managing director of UTM Offshore Ltd, Julius Rone, said policy inconsistency and insecurity are some of the major challenges hindering the growth of Nigeria’s energy sector.
Rone, represented by George Amara of his Project Technical Team, said this on Friday at the 2024 African Gas Innovation Summit (AGIS) in Abuja.
Speaking during a panel discussion on “Solving Africa’s Gas Development and Utilisation Challenges through Domestication of Innovation” Rone said innovation and technology are also driving the migration of youths on the continent, especially to Nigeria.
“And why are they leaving the country? Maybe the environment is not favourable for research and development.
“So we need to see how we can even partner with the Nigerians abroad and break the barriers everywhere to see how they can even work with us globally.
“Now we are in the era of technology, and people can work wherever they are. So, we need to see how we can get into this developmental pattern related to innovation and technology.
The managing director said the issue of policy framework also posed a major challenge because there is inconsistency in our policies in the country.
“So these are areas I feel we have to improve. If we improve the policies, let there be stability. We recently read why Total is putting about six billion dollars in Angola, not Nigeria.
“One of the key things they mentioned is the inconsistency of policy and security. Therefore, these are key things, like a monster killing the business in Nigeria, even as they are divesting.
“No investor or businessman will want to put money where you cannot get anything.
“So the local investors will even hold back or put in money where they are not sure they will get it back. And at the end of the day, it shows in our data,’’ he said.
The managing director, however, said the essence of the meeting was not to dwell on things that were bedevilling us but to chart a way forward.
He then urged a collaborative effort among the various stakeholders to ensure the meeting’s purpose was achieved.
Representing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed Mungadi said it was crucial to enhance gas utilisation efficiency in Nigeria and the continent.
Mungadi said there is an urgent need for efficiency in gas utilisation as Nigeria aims to accelerate the use of its gas resources.
He said: “it is important that we immediately, at this stage, try to optimise the efficiency of our utilisation.
“If we take certain volumes of gas, say a million tonnes of gas, and produce electricity,.
“It is possible that half of that gas will have been used to produce the same amount of electricity or other gas products.
“This underscores the need for developing mechanisms that allow for more effective use of gas resources, ensuring that Nigeria maximises the benefits from its finite gas reserves.”
According to him, efficiency in gas utilisation also has significant implications for households and industrial consumers.
Addressing the role of academia and research institutions in supporting innovation, Mungadi said stakeholder engagement, as stipulated by the Petroleum Industry Act (PIA), was crucial.
“The PIA has stipulated that regulators should conduct stakeholder engagement whenever they make any policy or law.
“Academia, however, should be an integral part of these engagements to provide solutions for present and future challenges.
Mungadi said it was also important to leverage existing government institutions, such as the Petroleum Development Trust Fund (PTDF), to foster academia-industry collaboration.
According to him, this collaborative effort is crucial for developing regulatory frameworks that support innovation in the gas sector.
Also, Chairman Oliserv Ltd, Dr Emeka Okwuso, said security was one of the big issues in developing and utilising gas on the continent.
“Today, gas pipeline facilities are sabotaged. So, we have to introduce technology and adapt it from the perspective of solving our security challenges, Okwuso who was represented by the managing director Frazmes, Chuka Eze, said.
“And we have to be collaborative about it. What we have found in the industry is that each organisation has a solution; we are not synergising together; we need synergy to get a harmonistic solution.
“For me, the issue has to be handled harmoniously for us to realise the potential,’’ he said.