The African Refiners and Distributors Association (ARDA) is advocating for a thorough investment strategy as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) seeks $575 billion in funding for decarbonization initiatives. Speaking during the United Nations Climate Change Conference (COP28) in Dubai, Anibor Kragha,
Championing a unique energy transition plan for the African continent
the Executive Secretary of ARDA, emphasized the importance of Nigeria tapping into funding opportunities for gas projects from international financiers involved in agriculture, given the significant role of gas in the sector.
Kragha highlighted the critical role of Development Finance Institutions (DFIs) in providing additional financing support to unlock private capital for investments. He specifically suggested that the Bank of Agriculture could be instrumental, considering the pivotal role of gas as the primary raw material for fertilizer production. Kragha urged the NMDPRA, as the regulator of the Midstream and Downstream industry, to formulate a comprehensive decade-by-decade plan for decarbonization, incorporating bankable projects to attract finance from foreign donor agencies.
Emphasizing the importance of involving young people in the decarbonization drive, Kragha asserted that they would play a significant role in implementing initiatives in the future. Dr. Mustapha Lamorde, the Executive Director of Health, Safety, Environment, and Community (HSEC) at NMDPRA, discussed the NMDPRA Industry Sustainability Initiative (NISI), aligned with Global Sustainability Development Goals, aiming to achieve Nigeria’s 2060 Net Zero commitment in the midstream and downstream petroleum industry.
Lamorde outlined the investment opportunities sector-wise, including $272 billion in power, $127 billion in infrastructure, $96 billion in oil and gas processing optimization, $80 billion in the industry, and $2.8 billion in clean cooking. He stressed the need for strong government commitment and collaboration with the private sector, leveraging technological innovation to realize these goals.
Mansur Kuliya Alkali, Executive Director of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), explained that the MDGIF, established under the Petroleum Industry Act (PIA), plays a pivotal role in accelerating investments along the gas value chain. He clarified that the MDGIF operates as an investment initiative designed to de-risk investments through partnerships with the private sector to build essential infrastructure for harnessing the country’s abundant gas resources.
Abel Nsa, the Technical Adviser on Transition Energy to the Honourable Minister of State, Petroleum Resources (Gas), highlighted the significance of the Host Community Development Framework and the Decade of Gas initiative. Nsa emphasized ongoing discussions with upstream gas producers to ensure the protection of oil and gas assets, guaranteeing uninterrupted production and supply critical to midstream operations. Additionally, the Decade of Gas initiative aims to secure a stable supply of gas for domestic utility needs.
Source: The Guardian