As the global push for cleaner energy gains momentum, Afreximbank has pledged to support investors with the capacity to produce 10,000 barrels of oil per day (bpd), according to Minister of State for Petroleum Resources, Heineken Lokpobiri. Speaking at the Practical Nigerian Content (PNC) Forum in Yenagoa, Bayelsa State, Lokpobiri emphasized the need for Nigeria to harness its hydrocarbon resources while strategically aligning with renewable energy and sustainability trends.
Financing Mechanisms for Energy Projects
Lokpobiri identified the Africa Energy Bank as pivotal in funding large-scale energy projects across the continent, emphasizing its transformative role in:
- Supporting sustainable development.
- Mobilizing financing for energy initiatives.
- Positioning Nigeria as a leader in Africa’s energy markets under the African Continental Free Trade Agreement (AfCFTA).
Local Content Success Stories
The Nigerian Oil and Gas Industry Content Development Act (NOGICD Act) has bolstered local participation in the oil and gas sector:
- Local content growth: From less than 10% in 2010 to over 54% today.
- Capacity building: Thousands of Nigerians trained to international standards, enabling global competitiveness.
- Industrial investments: Development of fabrication yards, pipe mills, and engineering hubs.
Lokpobiri noted that the achievements under the Nigerian Content Development and Monitoring Board (NCDMB) have significantly reduced capital flight and driven industrialization.
Opportunities in Onshore Asset Transfers
With international oil companies (IOCs) divesting onshore assets, there is a chance to deepen local expertise and foster globally competitive Nigerian operators. However, Lokpobiri stressed the need for a supportive regulatory framework to manage these transitions effectively.
Balancing Hydrocarbons and Renewables
Acknowledging the global shift towards cleaner energy, Lokpobiri highlighted the dual challenges and opportunities for Nigeria:
- Leveraging hydrocarbon resources for economic growth.
- Exploring renewable energy and gas projects to align with sustainability goals.
He stated,
“At this juncture in our nation’s development, we stand at the crossroads of opportunity and responsibility. The successes we have achieved in embedding local content into key sectors, particularly oil and gas, demonstrate Nigeria’s resilience, innovation, and capacity for growth.”
Looking Ahead
Lokpobiri concluded by urging collaborative efforts among international and indigenous stakeholders to scale current successes and drive future growth in Nigeria’s energy sector. With the Africa Energy Bank and frameworks like the AfCFTA, Nigeria is well-positioned to lead Africa’s energy landscape while navigating the complexities of the global energy transition.
