Energy Transition Symposium Report

Theme: Energy Transition in an Oil-dependent Economy
Venue: Shehu Musa Yar’Adua Centre, Abuja, Nigeria Date: May, 24th, 2024

OUTLINE (TABLE OF CONTENTS) I. Executive Summary
a. Objectives
b. Main Recommendations
II. General Overview
a. Context and Rationale
b. Problem Statement
c. Gaps
d. Strategies
e. Short-Term Goal
f. Long-Term Goal
g. Methodology
III. Symposium Proceedings
IV. Plenary Presentations and Discussions
a. Brief Remarks 1, 2 & 3
b. Presentation by Prof. Bart Nnaji
c. Panel Discussion Session 1
d. Presentation by Prof. Chukwumerije Okereke
e. Panel Discussion Session 2
f. Symposium Takeaway

EXECUTIVE SUMMARY

The Energy Transition Symposium was held on 24th May 2024, at the Shehu Yar’ Adua Centre, Abuja, Nigeria. This forum brought together more than 400 participants, including senior government officials, legislators, MDAs, tertiary educational institutions, research institutions, civil society, community representatives, women groups, the youth, and the media, among others; with the discussions centering on the nation’s lingering energy crisis, its causes, gaps, and the need as well as the know-how to transition to net-zero emissions in a socially equitable manner while at the same time building sustainable power systems to drive development and sustainable economic growth. The forum was organized on the platform of Development Agenda Magazine, a regional development-oriented quarterly published by Classmasters Limited. The one-day symposium was with the sponsorship and partnership of the Ford Foundation. The symposium’s theme was: “Energy Transition in an Oil-dependent Economy”. The symposium focused on the sensitization of the public and the government on the global urgency of the energy transition and the need for a compass of social equity in its navigation.

OBJECTIVES

The objective of the Energy Transition Symposium was to provide an opportunity for stakeholders to evaluate Nigeria’s contributions and propose ways of supporting government, corporate, and individual actions towards a socially equitable energy transition. The symposium explored how Nigeria can transition to net-zero emissions while simultaneously building sustainable power systems to drive development and economic growth. To achieve this objective, the symposium adopted the following approach:

•  Plenary sessions with keynote addresses on the major theme of the forum
• Two-panel discussions addressing energy-related challenges, the role of CSOs and educational institutions, etc.
• Plenary sessions with paper presentations
• Poetry performance
• Interactive discussion sessions featuring remarks on various topics, followed by a closing remark by the Publisher of Development Agenda Magazine

The discussions focused on the following themes:

• Climate Change and its Impact / Climate Justice
• Nigerian Energy Transition Plan (ETP)
• Clean Energy Technology Adoption
• Role of Women / Youth
• Energy Access
• Empowering Indigenous Response Mechanisms

Main Recommendations from the Energy Transition Symposium:

• Government needs to develop the nation’s gas infrastructure and phase out flaring, generate cleaner energy, and create jobs.
• Nigeria should diversify its energy portfolio to achieve a sustainable future by increasing investments in renewable energy sources such as solar, wind, and hydropower.
• Adoption of cutting-edge technologies—from smart grids and energy storage solutions to carbon capture and utilization technologies—will enhance energy efficiency, reduce emissions, and lower costs.
• Create an enabling environment through robust policies and regulations that encourage investments in renewable energy, provide incentives for clean energy projects, and ensure a just transition, especially for those whose livelihoods depend on the oil sector.
• Raise awareness about the benefits of clean energy in urban and rural communities to foster collaboration in addressing the nation’s energy challenges.
• Strengthen partnerships with international organizations, development partners, and other countries to share knowledge, access funding, and build capacity.
• Invest in gas development to enhance national power and independence, while also considering local needs over Western prescriptions.
• Emphasize increasing power generation to improve quality of life, reduce costs, and ease burdens on citizens.
• Recognize and centralize community knowledge in energy transition plans, reducing dependence on expatriate workers.
• Mitigate cultural and livelihood losses from energy transition technologies.
• Promote local manufacturing and use of solar panels, batteries, etc., instead of imports.
• Adopt the concept of “Energeocracy”—energy of, by, and for the people—encouraging private partnerships.
• Ensure the transition benefits all, not just the wealthy, and is not business as usual.
• Improve policy execution processes to harness Nigeria’s renewable energy potential effectively.
• Empower women as advocates of renewable energy and ensure their active participation and benefit from the transition.
• Engage media actively in the energy transition, training journalists to educate the public and hold officials accountable.
• Promote a just and equitable transition with a level playing field, involving all social forces in policy development.
• Start with achievable goals to transition away from fossil and dirty fuels gradually.
• Develop and localize technology solutions specific to Nigeria while sourcing appropriate technology globally.

GENERAL OVERVIEW

CONTEXT AND RATIONALE

Climate change is real, and the world is experiencing its effects in the form of extreme weather events such as droughts, heatwaves, floods, and landslides.

The recent floods, which killed over 603 people and displaced more than 1,302,589 others in Nigeria according to the Ministry of Humanitarian Affairs, were a clear manifestation of the impact of climate change on humanity.

As of today, the Sahara Desert continues to encroach into the northernmost Sahel region of the country at a speed of 0.6 kilometers per year, with severe consequences for livelihoods. Wetlands are drying up, and sea levels are rising.

Officially launched on August 24, 2022, the Nigerian Energy Transition Plan (ETP) is designed to simultaneously address the challenges of energy poverty and the climate crisis.

The plan is said to be the first of its kind in Africa, highlighting the significant resources needed to achieve both development and climate goals by 2060. However, a major challenge, as mentioned earlier, is the current economic downturn.

It should be noted that energy transition represents a paradigm shift rather than a gradual evolution, fraught with bumps and shocks that raise questions about climate justice. CO2 emissions from fuel combustion in Africa as of 2021 amounted to 428,909 Mt. Even with the largest economies on the continent operating at full capacity today, these emissions still account for only about 1% of the total global emissions.

Should Nigeria, and Africa as a whole, bear the full burden of the costs of this transition, considering that the continent is not the primary contributor to climate change? Regarding the Energy Transition Plan, it should be noted that high investment costs lead to high implementation costs, making the adoption of clean energy technologies expensive.

Therefore, there is a need to support every effort aimed at enhancing the resilience and adaptive capacity of Nigerians and Africans to ensure climate justice. The entire world must work together to close the adaptation gap.

PROBLEM STATEMENT

There is an apparent energy crisis and a general economic downturn in the country. The Nigerian energy supply crisis refers to the ongoing failure of the Nigerian power sector to provide adequate electricity supply to domestic households and industrial producers, exacerbated by the overwhelming dependence on fossil fuels to power machinery, including vehicles.

The energy crisis in Nigeria is caused by funding problems, energy losses, inadequate budgetary provisions, corruption, leadership crises, poor maintenance and neglect of projects, lack of technical skills, infrastructural decay, gas shortages, electricity billing issues, tariff discrepancies, and low energy generation. Additionally, the infrastructure for electricity-powered vehicles is lacking.

GAPS

Most Nigerians still use charcoal or wood as cooking fuel, leading to deforestation, premature deaths from indoor air pollution, and unnecessary carbon emissions. Instead of lamenting this trend, Nigeria should explore environmentally friendly, affordable, and accessible energy sources.

The challenge facing Nigeria is how to transition to net-zero emissions while simultaneously developing sustainable power systems to drive development and sustainable economic growth.

The use of fossil fuels is widespread in the Nigerian economy. With the economy experiencing a downturn in recent months, the energy transition plan could be jeopardized if not meticulously implemented.

STRATEGIES

The symposium served as a wake-up call to relevant institutions. The Energy Transition Plan (ETP), Nigeria’s home-grown, data-backed, multipronged strategy, has established a timeline and framework for achieving emissions reduction across the oil and gas, power, cooking, industry, and transportation sectors. Approximately 65% of the country’s emissions are expected to be addressed under this plan.

The ETP aims to address the dual crises of energy poverty and climate change, aiming to achieve universal energy access (SDG7) by 2030 and net-zero emissions by 2060.

The symposium saw wide participation, including from the Presidency, ministries and government agencies, international development organizations, environmental and development NGOs, educational and research institutions, as well as traditional and religious organizations.

SHORT-TERM GOAL

The major short-term goal is to ensure that relevant institutions begin to embark on concrete actions towards achieving energy transition.

LONG-TERM GOAL

The long-term goal is a successful transition and economic diversification. The ETP should transition the Nigerian economy across sectors to clean energy, expected to lift over 100 million people out of poverty by driving economic growth.

METHODOLOGY

The format adopted for the Energy Transition Symposium consisted of plenary discussions, panel sessions, presentations, and poetry performances, all largely focused on the themes of the forum.

The content of the one-day symposium was divided into the following sections:

• Brief Remarks / Keynote Addresses
• 2 Plenary Papers revolving around the themes were presented.
• 2 Panel Discussion Sessions: These sessions explored topics related to galvanizing a national approach to addressing energy and energy transition challenges in the country. The purpose of the panel discussions was to spark conversations among groups of experts, thought leaders, and the audience, enabling them to learn from their discourse and interaction.
• Poetry Performance: This involved poetic communication and interaction related to the spheres of energy and energy transition.
• Closing Remarks

SYMPOSIUM PROCEEDINGS

Opening Ceremony

Brief Remarks 1:
Dr. Chichi Aniagolu-Okoye (Director, West Africa Office of the Ford Foundation)
(Represented by Emmanuel Kuyole)

There is currently a global conversation surrounding the future of the energy paradigm. This paradigm, known as Energy Transition, holds significant implications for oil-producing countries like Nigeria. The transition is likely to be driven by minerals, which Nigeria also possesses. However, this shift to minerals also presents implications for countries such as Nigeria.

The Ford Foundation is concerned with how this transition affects communities. We are aware of the costs Nigeria is already bearing due to extraction, particularly in the Niger Delta region. We aim to prevent the spread of the Niger Delta situation across Nigeria.

Energy Transition presents both opportunities and risks, including job creation and loss, as well as security of lives and property. We need a transition that is equitable and addresses the people’s needs.

Brief Remarks 2:
Alhaji Kashim Shettima (Vice President of Nigeria)
(Represented by Sadiq Wanka, Special Adviser to the President on Power and Infrastructure)

Nigeria aims to achieve net zero emissions by 2060 and intends to maximize its petroleum resources before then. Dependency on biomass for cooking could lead to extensive deforestation. There is a critical need to rapidly scale up energy production to enhance economic transformation for Nigerians.

Currently, 45% of Nigerians lack access to electricity. Rapid economic development is essential to improve the livelihoods of Nigerians. Bold action is needed to mitigate the adverse effects of climate change.

Improving Nigeria’s economic conditions is urgent. Environmental and social considerations must be managed carefully to positively impact the lives of millions. Nigeria currently has the world’s highest deforestation rate due to biomass energy dependence.

In the northern regions, desert encroachment threatens communities, especially around the Lake Chad Basin. Rising sea levels pose a threat to coastal cities and communities in the south.

Nigeria’s energy transition plan emphasizes achieving a net zero economy by 2060 while maximizing petroleum resources in the short term to provide base-load energy. This supports government initiatives to boost hydrocarbon investments up to 2030, including specific tax credits and incentives for developing associated gas fields.

A dual strategy combining renewable energy with oil and gas investments has already shown promising results. These efforts support overall climate action and aim to mainstream climate initiatives internationally.

A renewed focus on hydroelectric power aims to harness Nigeria’s near-term hydropower potential of 14,000 megawatts, including the recent addition of 700 megawatts from new hydropower plants online as of 2024.

Projects supported by the World Bank and African Development Bank have connected over 7.5 million Nigerians to electricity through mini-grids and solar systems. Significant investments have also been made in local value chains, such as solar panel assembly and lithium processing, crucial for supporting both local and global energy transition efforts.

However, fully implementing Nigeria’s energy transition will be challenging, requiring coordinated local efforts and international collaboration to secure financing and prepare the workforce for a net zero economy.

Brief Remarks 3:
Hon. Ekperikpe Ekpo (Minister of State, Petroleum Resources – Gas)

Natural gas stands out as a transitional fuel that can bridge the gap between our current reliance on oil and a future dominated by renewables. To achieve a sustainable energy future, we must diversify our energy portfolio, which includes increasing investments in renewable sources such as solar, wind, and hydropower.

The adoption of cutting-edge technologies is crucial for a successful energy transition. Creating an enabling environment through robust policies and regulations is essential. We need frameworks that encourage investments in renewable energy, provide incentives for clean energy projects, and ensure a just transition for all stakeholders, especially those whose livelihoods depend on the oil sector.

Raising awareness about the benefits of clean energy in urban and rural communities is vital to fostering a collaborative approach to Nigeria’s energy challenges. Strengthening partnerships with international organizations, development partners, and other countries will facilitate knowledge sharing, access to funding, and capacity building.

PRESENTATION1:

By Prof. Bart Nnaji (Professor of Mechanical and Industrial Engineering; Inventor of E-Design Concept)

There is significant insincerity in the Western demand for global transition to so-called clean energy, especially as they refuse to acknowledge gas as a clean energy source. Following the Russia-Ukraine war, Western countries notably reverted to coal as a major energy source, undermining their previous stance against fossil fuels.

The pledge to phase out fossil fuels has proven unrealistic, particularly for countries aiming to cease production of internal combustion engines. Even in the USA, the sale of electric vehicles remains low, with the government imposing a 100% duty on cheaper Chinese-made electric vehicles. Currently, fossil fuels supply nearly 60% of energy in the US.

Oil majors have similarly reversed course, initially rebranding as energy firms but now openly embracing their fossil fuel businesses under the banner of energy security, supplanting clean energy as their primary focus.

Despite promises by rich nations to support poorer nations financially, these funds have been inadequate and inconsistent with the real needs of developing nations, offering little help in transitioning away from fossil fuels. Consequently, many poor countries distrust Western intentions, viewing current trends as a form of ‘green colonialism’ or ‘green imperialism’. Extreme green policies in the West equating gas with coal are deemed unacceptable globally.

Nigeria finds itself in a critical period where it must prioritize its own interests over Western influence, given their inconsistent policies. It is essential not to disregard gas as an energy source. While green energy is beneficial, its practicality is limited.

Nigeria possesses the capability to develop diverse resources but lacks focused investment. Prioritizing gas development could significantly enhance Nigeria’s national power. Conversely, blindly following Western prescriptions may lead to detrimental outcomes.

PANEL DISCUSSION SESSION ONE

• Moderator: Dr. Salamatu Fada
• Panelists:
• Professor. Uwaoma Kalu Uche
• Hon. Uche Onyeagocha
• Dr. Adeyeye, Ondo State
• Damaris Uja
• Abiola Adebiyi
• Diran Onifade

Dr. Fada began by emphasizing that the discussions would center on Nigeria and how Nigerians can help themselves.

Prof. Uche highlighted that universities are burdened with high energy bills and emphasized the need to find solutions. For instance, in Aba, the city transitioned to full energy independence due to the efforts of Professor Barth Nnaji and a new private power plant. The Aba power plant utilizes locally sourced gas. He suggested that the North could promote solar-based power, while Enugu could explore coal for trains and household power. Transition efforts should be locally driven, resisting Western influence.

Onifade countered that Nigeria is currently in an energy crisis and argued against focusing on energy transition now, citing insufficient energy supply nationwide. He stressed the importance of addressing immediate energy needs before planning transitions.

Damaris advocated for diversifying and decentralizing Nigeria’s energy structure, allowing each region to leverage its strengths. She emphasized that any transition must be inclusive and acknowledged that adopting gas, for example, may not be economically feasible for all.

Abiola emphasized that youth can offer solutions to Nigeria’s energy challenges, emphasizing the need for accessible and user-friendly technologies. He cautioned against rushing into new technologies without fully mastering existing ones in the oil and gas sectors.

Dr. Fada criticized Nigeria’s tendency to rely on foreign experts rather than valuing indigenous knowledge. He urged a shift towards recognizing and prioritizing local expertise in energy transition plans.

Community knowledge, according to Dr. Fada, should be central to energy transition strategies. He stressed the importance of a Just Transition for workers, identifying which jobs may be affected and advocating for retraining and reskilling initiatives to mitigate negative impacts on livelihoods and culture.

Onyeagucha disputed Nigeria being labeled a polluter and called for an end to the importation of solar panels and batteries unless they are produced locally.

Uwaoma advocated for “energeocracy,” emphasizing energy solutions developed and controlled by the Nigerian people through private partnerships.

Dr. Fada concluded by urging Nigerians not to solely blame the government, acknowledging that leadership changes can complicate transition efforts. He emphasized the need for Nigerians to take ownership of the transition process.

PRESENTATION 2:

By Prof. Chukwumerije Okereke (Director, Centre for Climate Change and Development, Alex Ekwueme Federal University, Ebonyi)

We must ensure that the transition works because business as usual is no longer sustainable. Climate change affects not just immediate weather patterns but also long-term climatic conditions, significantly impacting agricultural production.

The global energy transition will create winners and losers worldwide. Some regions will gain jobs while others will lose them. Men are likely to benefit from job creation while women may face job losses. Our oil industry will be affected, and the severity of this impact will hinge on the clarity and effectiveness of our transition process.

However, it is crucial to insist that the transition benefits everyone, not just the wealthy. Africans and the Global South are not the primary contributors to climate change, yet we may bear a disproportionate burden in addressing it.

PANEL DISCUSSION SESSION TWO

• Moderator: Dr. Asmau Benzies Loe
• Panelists:
• Prof. Uwaoma Kalu Uche
• Mohammed Bawa
• Prof. Chukwuma C. Ogbaga
• Prof. Bassey Ubom
• Halima Imam
• Amina Ibrahim Zarami
• Ms. Ibiba Don Pedro

Discussion resolutions:

Nigeria has many policies, but we seem unable to effectively implement any of them for our benefit. Therefore, improving our policy execution process is crucial to capitalize on the numerous renewable energy sources available to us.

Women should actively advocate for renewable energy and receive special encouragement to benefit from it. It’s imperative to drive down costs so that women and the economically disadvantaged can access and benefit from these alternative energy sources.

Easily accessible materials within local communities can replace dirty energy sources like firewood for women. For example, the Climate Action Network collaborates with women in Nasarawa and FCT to produce clean cooking materials such as briquettes from ash, sawdust, starch, and other materials.

The media needs a thorough understanding and accurate reporting on all aspects of energy transition issues, from extraction to processing and their impacts on communities. Journalists themselves require continuous training to explain the energy transition process to the public and to critique officials and powerful figures on their actions.

The transition to renewable energy must be just and equitable, ensuring a level playing field where all societal forces collaborate to develop a feasible energy transition policy. Collaborative efforts between government and the private sector consistently yield positive results.

Starting with achievable goals, the government should gradually reduce Nigeria’s reliance on fossil fuels and other dirty energy sources. It’s crucial to develop technologies and solutions tailored specifically to Nigeria’s needs. Mobilizing resources requires collaboration among agencies and between the public and private sectors.

Ultimately, sourcing and adapting appropriate technologies from around the world to suit local contexts is paramount.

SYMPOSIUM KEY TAKEAWAY

Publisher and Editor-in-Chief of Development Agenda Magazine, Mr. Paddy Ezeala, remarked in his closing speech that it was exciting to conclude a meeting that had enlightened stakeholders in the energy and environment sectors. He noted that as a result of the symposium, a wealth of information had become available to experts and policymakers. Mr. Ezeala added that the meeting had successfully brought together experts from various fields to discuss critical issues. He assured participants that resolutions made at the symposium would be communicated to the appropriate quarters and followed up to ensure positive and tangible results. He emphasized that the event was not merely another ‘jamboree’. Mr. Ezeala thanked all participants, both local and international, for their active participation in the symposium.