NRGI urges Nigeria to balance gas, renewable energy investments
NRGI urges Nigeria to balance gas, renewable energy investments
Nigeria should scale back its gas ambitions and pursue a balanced energy strategy, says a new report by the Natural Resource Governance Institute (NRGI).
The report warned that treating gas as the backbone of a centralised electricity system would undermine efforts to achieve reliable, affordable and sustainable power.
Titled ‘Nigeria’s Gas-to-Power Ambitions: Limits, Opportunities and Alternatives’, the report was unveiled on Monday in Abuja during the National Dialogue on Nigeria’s Energy Transition.
The dialogue was convened by NRGI in partnership with the National Council on Climate Change, Nextier and Electricity Hub.
The report was authored by NRGI Nigeria Country Manager, Tengi George-Ikoli, and the institute’s Lead, Sustainable Energy Supply, Aaron Sayne.
It stated that Nigeria should adopt a balanced approach by combining efficient gas investments with accelerated renewable energy deployment and stronger electricity infrastructure.
According to the report, gas would remain important within Nigeria’s energy mix for decades in spite of growing renewable energy opportunities.
However, it cautioned against excessive reliance on expanding large-scale gas-fired electricity generation as the country’s primary long-term power solution.
It noted that two decades of experience had exposed persistent fuel supply shortages, financing difficulties and governance weaknesses across Nigeria’s electricity sector.
The report stated that these longstanding challenges required policymakers to moderate expectations regarding the country’s future gas-to-power potential.
It recommended a pragmatic transition centred on affordability, operational performance and development outcomes instead of favouring any single electricity generation technology.
The report urged government to preserve existing gas-fired power stations through carefully targeted interventions while expanding renewable energy infrastructure nationwide.
It called on the Ministries of Petroleum Resources and Power to jointly improve gas supplies to operational electricity generation plants.
Read Also: Late Merino strike ends Ronaldo’s World Cup dream as Spain edge…
According to the report, this should include enhanced pipeline security, stricter enforcement of domestic gas supply obligations and stronger coordination among industry operators.
The report also urged the Presidency to establish a multi-stakeholder committee examining options for electricity generation companies to purchase gas using naira.
It said the proposal could reduce operating costs while easing foreign exchange pressures currently affecting electricity generation companies.
The report recommended prioritising financial support for electricity distribution companies capable of improving metering, billing efficiency and revenue collection across the electricity value chain.
It advised federal and state governments to strengthen integrated least-cost electricity planning using common economic and reliability criteria across competing technologies.
These technologies include gas, solar, hydropower, battery storage, transmission infrastructure and demand-side investment options, the report stated.
It further recommended developing comprehensive regulatory frameworks supporting utility-scale and distributed energy storage to strengthen grid integration and electricity reliability.
To safeguard scarce public resources, the report advised against assuming generation companies’ debts to gas suppliers or issuing fresh sovereign guarantees.
Instead, it recommended redirecting public funds earmarked for new gas-fired plants towards renewable energy projects and advanced electricity storage technologies.
The report also urged agencies revising Nigeria’s Integrated Resource Plan and Strategic Investment Plan to clearly define future roles for gas and renewables.
It recommended excluding gas projects with little prospect of completion while prioritising battery storage, pumped hydro and private electricity generation initiatives.
The report stated: “The country’s energy future should not be framed as a choice between gas and renewables.
“It should instead be viewed as an opportunity to allocate limited public resources to technologies delivering reliable, affordable and sustainable electricity for long-term national development.”
