‘Annual Investment of $35bn Will Serve 759m People Electricity in Africa’ – Sylva
Minister of state, petroleum, Mr. Timipre Sylva has said that an annual investment of around $35 billion could bring electricity access to 759 million Africans who currently lack it.
He also said that the Sub-Saharan Africa could require as much as $60 billion to access reliable electricity and clean cooking facilities between now and 2030.
The minister who spoke during the annual symposium and exhibition of the Society of Petroleum Engineers (SPE), in Lagos, further highlighted that another $25 billion a year could help 2.6 billion people globally to access clean cooking by 2030.
The SPE annual symposium and exhibition had as its theme: “Energy Transition in Africa: A Strategic Pathway to Net Zero.
“Annual investments of around $35 billion could bring electricity access for 759 million people who currently lack it, and $25 billion a year can help 2.6 billion people gain access to clean cooking between now and 2030,” the minister said
According to Sylva, the required investment represents only a small fraction of the multi-trillion-dollar global energy investment needed overall.
Sylva noted that there was need for the continent to shift to cleaner energy use despite contributing less than six per cent of world energy consumption and two per cent of total global emissions.
He argued that with significantly untapped fossil fuel reserves, that could provide the much-needed foreign direct investment and export revenue, the minister stressed that Africa has the ability to play a leading role in this regard.
Nigeria has the mineral resources with approximately 208.62 trillion cubic feet (TCF) of proven gas valued at over $803.9 trillion and potential upside of 600TCF of gas, the most extensive in Africa, and in the top 10 globally.
“The PIA has generous incentives to enable development, distribution, penetration, and utilisation of gas even as it incentivises entry into the midstream, especially for pipelines with an additional five-year tax holiday for investment in gas pipelines.
“The PIA is a supply-side enabler, capable of provoking and triggering commercial interests and investments in gas utilisation as well as treating gas as a stand-alone commodity.
“As a nation, we are following a transition pathway that combines technology, investment, business strategies, and government policy that will enable Nigeria to transition from its current energy system to a low-carbon energy system with natural gas playing a pivotal role over the next generation, roughly between now and 2060,” he added.
Furthermore, he cautioned that in the energy transition, no country should be left out in the process of achieving net-zero by 2060.
“As a continent, we need to be intentional and recognise the need to develop hydrocarbon resources in environmentally and socially responsible ways.
“And as alluded to by the African Union, we need to be realistic in choosing the energy transition pathways which addresses our unique requirements and circumstances,” Sylva said.