It is an honour to be invited as Speaker at this years Trade and Investment Forum which is aimed at supporting economic growth and development in Africa by increasing access to reliable, affordable, and sustainable power across the continent.
The Russian Ukraine war and the increased strain of the Covid 19 pandemic has seen African counties grappling with severe economic shocks.
This situation has given rise to record high inflation and in response, we see Central banks across the world increasing interest rates. There is also growing concern on the negative impact of rising borrowing costs on highly leveraged emerging economies in Africa.
In its 2022 Africa Economic Outlook, the African Development Bank noted that the continent risks sliding into stagflation.
Similarly, the International Energy Agency’s (IEA’s) 2022 Africa Energy Outlook noted that the continent’s energy security has worsened with more people on the continent now living without electricity more than before the COVID-19 Pandemic.
There is no doubt that sustainable, renewable energy is fundamental to Africa’s future. According to the UN, by 2050, the continent will be the home of 2 billion people, and two in five of the world’s children will be born there.
Meeting their needs with sustainable sources of modern energy – for consumption and production – will be essential to social welfare and economic development.
There is however a need to balance two key challenges:
I. Accelerating the energy transition to tackle climate crisis; and;
II. Ensuring energy security for the billions of people who rely on conventional energy for their basic human needs in line with United Nation’s Sustainable Development Goal 7.
These challenges call for the implementation of practical solutions that reduce the carbon intensity of hydrocarbons while also accelerating the growth of low carbon energy sources.
His Excellency, President Muhammadu Buhari of the Federal Republic of Nigeria, at the COP26 announced Nigeria’s commitment to carbon neutrality by 2060.
This was followed by the unveiling of Nigeria’s Energy Transition Plan (ETP), a multipronged strategy in which Gas plays a critical role as a transition fuel in Nigeria’s net-zero pathway.
Nigeria is the largest natural gas reserve holder on the African continent, with proven gas resources of 209.5 Tcf and a potential of up to 600 Tcf.
In recognition of the strategic importance of gas to its Energy Transition Plan, the Federal Government of Nigeria has declared 2021 to 2030 as the Decade of Gas and aims to leverage on the huge gas reserves to become not just a major exporter but a major gas consuming nation.
NNPC Limited holds the strategic advantage of being located in the continent’s largest economy. It is the largest single asset holder in the African Petroleum Industry with significant equity holdings in various high-value Upstream, Midstream and Downstream assets.
The Petroleum Industry Act 2021 and subsequent unveiling of the Nigerian National Petroleum Company Limited (NNPC Limited), has seen the new NNPC Limited upscaling its business models and operations to continuously meet new energy priorities that seek to minimize carbon footprint while paying attention to sustaining the energy security of our country, Nigeria, and the rest of the world.
The Petroleum Industry Act has also introduced fiscal and regulatory clarity that supports investment and growth. NNPC Limited offers numerous investment opportunities that guarantee positive returns across the energy value chain.
With a large population of over 200million, a growing middle class and a favourable investment climate, Nigeria’s Power Market offers numerous investment opportunities for Investors interested in power investments through Independent Power Projects (IPPs) such as the Abuja, Kaduna, Kano, Agura and Obite IPPs.
Another investment opportunity is the Ajaokuta-Kaduna-Kano (AKK) pipeline, a 614km-long natural gas pipeline currently being developed by the Nigerian National Petroleum Company Limited (NNPC Limited).
The pipeline will result in the establishment of a connecting pipeline network between the Eastern, Western and Northern regions of Nigeria that will ensure a steady and guaranteed gas supply network to these regions.
It is a pipeline that will provide gas for generation of power and for gas-based industries which would facilitate the development of new industries.
In addition, the AKK pipeline is expected to reduce the large volume of gas flared annually in Nigeria, as well as the subsequent environmental impact.
In effect, it is a great investment opportunity for investors because it is a pipeline to power, industrialization and wealth creation.
Nigeria’s energy transition creates significant investment opportunities in the renewable energy segment which is critical to the attainment of Nigeria’s net-zero goals.
In this regard, NNPC Limited through its Renewable Energy Division is also open to partnerships in renewable projects including Solar PVs, Biofuels as well as emission reduction initiatives.
Investment opportunities also exist in both Domestic and Regional Gas Infrastructure Projects that target emerging Domestic, Regional and European Markets.
Such investment opportunities include the Nigeria-Morocco Gas Pipeline Project, the Trans Sahara Gas Pipeline Project, the Qua Iboe-Obigbo-OB3 Pipeline and the Obigbo – Umuahia – Ajaokuta (OUA) Pipeline project to name a few.
In addition to the investment opportunities already highlighted, there is an assortment of other investment opportunities across the gas industry to cater for varying investor preference, ranging from Midstream gas processing opportunities to Gas Based Industries (GBIs), Power Trading, Domestic LNG and even construction of pipelines for gas transportation.
By taking advantage of these investment opportunities, potential investors secure their right to play in Africa’s largest market by partnering with it largest energy company-NNPC Limited.
I must commend the efforts of the Foreign Investment Network (FIN) in organizing this Trade and Investment Forum.
As the global energy transition gathers pace, Forums such as this will become even more critical for connecting global investors to investment opportunities in Africa.
Let me use this opportunity to invite potential investors to explore our broad portfolio of high-value projects with healthy and diversified returns
Let us progress the conversation……… Invest in Nigeria, Partner with NNPC Limited and Watch your investment grow.
Thank you all for your attention.
Senator Okadigbo, the Chairman, Board of Directors, NNPC Limited,
delivered this keynote address at the FIN’s Trade & Investment Forum (Power for Africa) with a theme titled: Investing for Reliable, Affordable and Sustainable Power in Africa”, on Friday, September 23, 2023 in New York, United States.
