The Nigeria Extractive Industries Transparency Initiative (NEITI) yesterday lauded what it described as the renewed political commitment of President Bola Tinubu towards strengthening Nigeria's climate change, energy transition and green economy solutions.
The NEITI Executive Secretary was speaking in Abuja at a roundtable event organized by BudgIT Foundation, a Non-governmental Organisation (NGO), on tracking energy transition costs and transparency in budgeting.
The Executive Secretary of NEITI, Dr. Ogbonnaya Orji, explained that the recent constitution of a Presidential Committee on Climate Action and Green Economic Solutions and the appointment of focal persons were fundamental steps that signalled the country's interests in the international debate on climate change, energy transition and green economy solutions.
In a statement in Abuja, Orji explained that with the United Nations' projection that Nigeria's population will rise to 400 million in the next 20 years, an unprecedented increase in energy demand that will put so much pressure on energy financing for developing countries, including Nigeria, makes it important for the country to prepare adequately for this.
It added that this so as to minimise the associated risks while maximising the potential opportunities that come with climate change and energy transition themselves, a statement by the Deputy Director/Head Communications & Advocacy, NEITI, Obiageli Onuorah, said.
"NEITI identified that deliberate investments in the solid minerals sector, gas infrastructure and commercialisation, technology, research innovation, human capital development, transportation, food security, and use of low-carbon hydrogen as priority areas of focus in the country's budgeting to respond to energy transition and climate change.
"These opportunities come at a cost that requires commitment to compute them in terms of human and material resources," he added.
Orji further reiterated the importance of gas commercialisation as an important pathway for Nigeria to mitigate the risks and economic impacts of climate change and energy transition.
"NEITI's recent report of the oil and gas industry disclosed a total unremitted revenue of gas royalty payments of $559.8 million and another unremitted sum of $828.8 million from unpaid gas flare penalties.
"A close look at these figures indicated that more gas was flared during the period than utilised, thereby posing serious dangers to the global zero emissions agenda," Orji stated.
The Executive Secretary called for a review of the country's gas commercialisation policy to align with the president's positive renewed commitments to climate change and green economic solutions.
Orji further announced that NEITI, with the support of international development partners like Ford Foundation had commenced a research study on the impacts of energy transition on Nigeria's economy.
The study, he explained, is to identify specific impacts on revenues, jobs, livelihood, the environment, food security, gender, and control of emissions.
The Minister of State for Environment, Dr. Ishaq Salako, who was special guest at the Round Table event, explained that the federal government, through the Ministry of Environment, had initiated the National Climate Change Policy and Climate Change Act to provide comprehensive policy framework and roadmap for the country's national climate action. Salako emphasised the importance of transparency in climate budgeting.
The minister announced that a National Green Bond Programme had been launched to pioneer the issuance of sovereign green bond in Africa to finance projects that reduce greenhouse gas emissions and promote sustainable development.
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"So far Nigeria has issued two sovereign green bonds, raising a total sum of N25.69 billion to finance 39 projects cutting across afforestation, renewable energy, transportation, agriculture and water resources. The process for the issuance of the third sovereign green bond is ongoing and has reached advance stage," Salako added.
The minister further urged the civil society and non governmental organisations to emulate the Budgit Foundation in building knowledge and understanding around climate change and green economic solutions, through engagement workshops.
In another development, the Executive Secretary of NEITI received in audience at NEITI House the President of the Geological Society of Nigeria (GSN), Mr. Malami Uba, who paid him a visit at the NEITI House.
Malami said he had followed the work of NEITI in leading reforms in the extractive industry and indicated the willingness of the organisation to partner and collaborate with NEITI to deepen interventions in the solid minerals sector.
