Nigeria needs to take actions to maximize gains from the gas sector, such as aligning the energy mix with the country’s competitive advantage, withdrawing subsidies, and improving on other structural changes.
This was made known by Prof. Yemi Oke, LLM, a Professor of Energy/Electricity Law & Regulation at the University of Lagos during the recent Energy Outlook organized by Nairametrics held on Saturday, April 27, 2024
The discussion also focused on energy infrastructure changes and planning strategies aligned with long-term sustainability goals.
What he said
Prof. Oke highlighted the importance of the energy sector and the need to depart from the status quo, noting:
- “Electricity is pivotal. A lot of Nigerians are keeping their eyes on what is happening to the sector.”
- “Expectedly, a new regime was assumed, the logic for that is simple,, how can we be self-sufficient with power?”
- “Within days of assuming power, we needed legislation to operationalize the power sector. The government then came on board to relinquish control, addressing concerns about conflicts within the Bureau of Public Enterprises”.
Removal of subsidies and structural changes
Prof. Oke advocated for government’s withdrawal of subsidies in the power sector, stating,
- “Too many subsidies existed in energy, power, and gas, which were not reasonably justifiable. The government had been subsidizing wastages because there were no incentives to become efficient.”
- “Under a reasonable structure, the Distribution Companies (DISCOs) would need to become cross-licensed.”
- “One aspect of the policy is the Siemens project, which unfortunately is way off behind schedule.”
- “Beyond Siemens, we have to fix the issue of the Rural Electrification Agency and fund.”
Discussing global realities, Prof. Oke stressed the importance of diversifying energy sources, stating,
- “We are still struggling with hydro and gas. We advised the government to prioritize gas in the Act.”
- “The energy mix is what the world is talking about. We should look in the direction of nuclear and coal, and scale up gas production.”
