The African Development Bank Group (AfDB) says Africa lacks adequate energy supplies and needs a large infusion of finances and infrastructure investment to meet its energy goals.
This was mentioned during the 2023 Nigeria International Energy Summit (NIES), which is taking place in Abuja from April 16–20 under the subject “Global perspectives for a sustainable energy future.” by Akinwumi Adesina, president of the AfDB.
In his speech, Security vs. Energy Transition: Global Perspectives for a Sustainable Energy Future, Adesina noted that access to funding for developing nations was increasingly being made reliant on a promise to net zero emissions, despite the critical need for energy security. He continued by saying that between 2020 and 2040, investments of $100 billion per year will be needed for Africa’s energy transition.
“Lack of energy security poses an existential threat to human security. Consequently, many countries are prioritizing energy security even as increased fossil fuel use impairs climate action; with their energy security plans centered on gas as a transition fuel,” he said.
The AfDB president who was represented by Lamin Barrow, the director-general of AfDB, said many Asian countries have prioritized energy security by increasing purchases above price caps and in non-dollar denominated contracts while Germany and the UK have turned back to coal for power generation
Taking a cue from this, Adesina said that the continent was well positioned to achieve net zero target through a combination of renewable energy sources such as wind, solar, green hydrogen etc, and the pragmatic utilization of gas as a transition fuel.
President Muhammadu Buhari, in his remarks, said upon his assumption of office in 2015, the energy sector was not in a good position and suffered numerous challenges which his administration addressed gradually.
Highlighting some of his administration’s achievements, Buhari who was represented by Boss Mustapha, the secretary to the government of the federation (SGF), said his administration combatted the issue of funding and sensitized the oil and gas sector, passed the Petroleum Industry Act (PIA), committed to the net zero emission goal, etc.
Speaking on infrastructure, he said one of the projects embarked on includes the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) pipeline, a 614km-long natural gas pipeline that will transport up to 3,500 million cubic feet of gas daily, help generate 3.6 gigawatts of power and support gas-based industries.
Buhari said the energy sector will continually be prioritized until the end of his administration, while the achievements will aid the incoming administration to start strong.
Gabriel Aduda, the permanent secretary , ministry of petroleum resources, on his part, said as global economies expand and demand for energy gas rises, it is important to find sustainable and innovative ways to meet the growing demand.
Story adapted from Business Day