MEMAN, PENGASSAN task govt on energy diversification policy
Sopuruchi Onwuka
Key investment group in the downstream energy industry, the Major Energy Marketers Association of Nigeria (MEMAN) is in chorus with the senior trade unions in the industry, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in demanding a broad national policy landscape for diversification and application of multifarious energy forms in the country.
The two groups stated in separate engagements with media representatives that investors and professionals in the country need congenial policy environment to position the country within the global trend for diversified and low carbon energy.
President of PENGASSAN, Comrade Festus Osifo (m), chants solidarity songs with his executive members during a media briefing in Lagos
The Oracle Today reports that government through regulators and the national oil company has adopted gas as Nigeria’s transportation fuel and has decade a Decade of Gas agenda that focus on penetration and versatile utilization, including gas for transportation.
In a routine webinar with the media, MEMAN pointed at the need for the country to open up for alterations in transportation energy, saying that the global sources of internal combustion (IC) engines that currently propel most of the vehicles in the country are under pressure to comply with environmental sustainability practices.
According to Sam Faleye of Saglev Incorporated, Nigeria needs to align with the new models in the transportation industry which emphasize electric vehicles (EVs) craved for their zero emission, cheaper long term cost and low noise pollution.
Whereas Nigeria has been the dump site for old and new IC vehicles from around the world, he pointed out, it would be a huge mistake for the country to miss out once more in the EV race by failing to tap into production and utilization benefits.
With an average 20 moving parts and no transmission, he explained, EVs offers the owners the advantage of low running cost, simple maintenance and emergency power support for homes through it their powerful inverter batteries.
On the other hand, Dr faleye noted, IC vehicles come with over 4000 moving parts that would require maintenance apart from additional cost of petroleum products like fuel, different oils and engine coolants. He made it clear that cost of running petroleum fired vehicles is prohibitive and would push the engine propelled vehicles out of market in the foreseeable future.
He stated that hundreds of thousands of EVs are already running the West African roads with owners charging them at home. He added that companies complying with global environmental sustainability practices in Nigeria expect delivery of 200,000 EVs for corporate application in 2025.
Also speaking at the MEMAN media webinar, Mr Akin Akigbgun of Sterling bank told the audience that EV transition would come quite ahead of energy transition, pointing at China’s net zero deadline of 2035, Europe’s EV switch by 2040 and Norway’s transit to EV by next year.
In a separate engagement with the media at the group’s office in Lagos, President of PENGASSAN, Comrade Festus Osifo, called on government to evolve learning models that would re-skill the Nigerian energy industry workforce for the emerging diversification imposed by energy transition.
“Energy Mix is much more important in this era when there is a huge clamour for climate change and Greener Energy,” Comrade Osifo declared.
He added that the dynamics of Nigeria’s energy demands require a multifaceted approach with a diversified mix of all available sources to ensure robust energy security.
PENGASSAN emphasized the need to strike the right balance between harnessing “our vast hydrocarbon resources and embracing renewable energy as a pathway for enhancing Nigeria’s energy security.”
In pointing out that nothing much has been done to enhance Nigeria’s Energy mix PENGASSAN observed that diversification has become imperative as global financing of fossil fuel-related energy becomes challenging.
Comrade Osifo made it clear that the government must open doors for innovation in the industry, adding that burying its head in gas would limit Nigeria’s industry expansion in the new energy era.
He argued that deliberate policies must be evolved to provide incentives for investors to expand Nigeria’s energy industry to include production of solar energy harnessing infrastructure, battery production, harnessing of biomass energy and domiciliation of hydrogen energy technology.
He pointed out that diversification of energy forms and sources in the country would enhance realization of the broad national objectives of energy availability, accessibility and affordability.
He stated the position of PENGASSAN to include a requirement on government to dedicate 50% of the accruable petroleum revenue to investments in renewable energy facilities like solar, batteries, wind, hydrogen, hydro, and other industries.
He also called on government to forge greater partnership with international oil companies currently involved in developing green energy businesses across the globe on accelerating new energy systems in the Nigerian market.
“Nigeria Government must urgently develop a practical and implementable Energy mix policy. This will set the policy direction and become the basis for negotiation with institutions and stakeholders who intend to invest in different energy sources,” Comrade Osifo declared.
Also at the MEMAN webinar, Mr Akingbogun stated that government must come with a policy on energy diversification as the industry transitions across the globe; adding that regulation of policies would make for a coordinated investment approach in development and collocation charging infrastructure for EVs at points of demand convergence such as malls, hotels and similar public places.
