NMDPRA: Nigeria can attract $575bn investment through decarbonisation

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will create over $575 billion in capital investment opportunities for Nigeria, through decarbonisation of operations.

According to NAN on Sunday, the NMDPRA, while hosting a session on ‘Nigeria’s pathway to energy sustainability and NMDPRA’s role’ at the UN climate change conference 2023 (COP28) in Dubai, UAE, x-rayed Nigeria’s journey towards reducing carbon emission and achieving net zero by 2060.

The agency said achieving the target of $575 billion will be possible through the NMDPRA Industry Sustainability Initiative (NISI).

Speaking at the event, Mustapha Lamorde, the agency’s executive director, health, safety, environment and community (HSEC), said the investment would be created through infrastructure and technological development, green economy improvement, stakeholder management and human capital development.

He said NISI which was created in line with the global Sustainability Development Goals (SDGs 3, 7, 8, 9, 11, 13, 16, 17) was geared towards achieving Nigeria’s 2060 net zero commitment in the midstream and downstream petroleum industry.

Providing a breakdown of the investment opportunities according to sectors, Lamorde said $272 billion is in power, $127 billion in infrastructure, $96 billion in oil and gas processing optimisation, $80 billion in industry and $2.8 billion in clean cooking.

He added that achieving the target required is through government commitment and collaboration with the private sector using technological innovation.

On his part, Anibor Kragha, executive secretary, African Refiners and Distributors Association (ARA), said the NMDPRA and the Nigerian government should harness funding opportunities for gas projects from international financiers dealing with agriculture.

This, Kragha said, was necessary because of the key role being played by gas in the sector.

He urged NMDPRA as the regulator of the midstream and downstream industry to develop a decade-by-decade plan to decarbonise both with bankable projects that would elicit finance from foreign donor agencies.

Kragha emphasised the importance of developing and including young people in the decarbonisation drive, as they were expected to play a major role in implementing the initiatives in the future.

Also speaking at the session, Mansur Alkali, NMPDRA executive director, Midstream and Downstream Gas Infrastructure Fund (MDGIF), said the MDGIF which was set up in line with section 52 of the Petroleum Industry Act (PIA), was pivotal towards accelerating investments along gas value chain.

Akali said: “MDGIF was neither a grant nor a loan, but rather an investment initiative designed to de-risk investments through partnerships with private sector players to build the necessary infrastructure to harness the country’s vast gas resources.”

Similarly, Abel Nsa, senior technical adviser on transition energy to Ekperipe Ekpo, minister of state, petroleum resources (gas), said the host Community development framework as inaugurated by the commission for upstream operations amongst other benefits would ensure oil and gas assets were adequately protected

He said the framework would ensure uninterrupted production and supply of petroleum products which were critical to midstream operations.

Nsa added that discussions are currently ongoing with upstream gas producers to deliver on the mandate.