Proffering Strategies To Optimise Nigeria’s Energy Sector

Strategic investments, policy reforms, and innovative practices that align with global standards and sustainability goals are of utmost importance to boost Nigeria’s energy sector.

Also, engaging more marketers in the distribution of fuel produced by Dangote Refinery and Petrochemicals will greatly enhance easier distribution of the product and jump-start the beleaguered Nigerian economy.

In addition, more usage of alternative energy such as solar will boost power accessibility in the country. These were the views of stakeholders and participants during recent engagements.

The stakeholders include: Major Energies Marketers Association of Nigeria (MEMAN); the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN); the Crude Oil Refineryowners Association of Nigeria (CORAN); the African Refiners and Distributors Association (ARDA) and Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN).

Others are: Energy Commission of Nigeria, The Nigerian Electricity Regulatory Commission and Lagos State Government.

Dappman

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) urged the management of Dangote Refinery to sell its products, including petrol, to all interested and capable marketers on a willing buyer, willing seller basis.

DAPPMAN’s representative, Dr. Gabriel Ogbechie, who is also the Group Managing Director, Rainoil Limited, called for a level playing field for the Nigerian National Petroleum Company Limited and all other interested and capable marketers.

He said: “From an industry perspective, we look forward to a level playing field where Dangote refinery should be able to sell petroleum products to any marketer who is willing to buy more on a willing buyer, willing seller basis.”

He said that for that to happen, marketers should also be able to sell at full recovery, in other words, people should be able to fix their own prices. He stated that for the entire downstream players, for years now, they had clamoured for full deregulation where every player in the market would play to the maximum of their capacity.

He opined that the industry was moving seriously in that direction. Vice Chairperson, The Crude Oil Refinery-owners Association of Nigeria (CORAN), Mrs. Dolapo Okulaja-Kotun, alleged that indigenous refiners were being denied sufficient feed stocks for their refineries.

Okulaja-Kotun, who is also the Executive Director, Operations, IkweOnna Refinery Limited, said insecurity, lack of access to funds were some of the other constraints of indigenous refiners.

She said: “The major challenge now is regulatory. While we seek to navigate complex regulatory frameworks and slow policy implementations such as the Petroleum Industry Act (PIA), high cost of our license and other fees that we are paying are other challenges.

“Hoarding is a major challenge. Lack of access to funding for the development of our oil and gas especially modular refineries that really should be uppermost in our minds because they have a low capital expenditure, are quicker and easier to construct and are able to increase capacity easly.so and are also get products into the local market quicker.”

NERC

The Nigerian Electricity Regulatory Commission (NERC) said the World Bank would soon be executing a solar auction framework that will reduce the cost of solar tariff in Nigeria.

The Head of Renewable Energy/Corporate Planning and Strategy, NERC, Engineer O. Jonathan, stated this during a MEMAN’s webinar competency centre renewable series titled: “Energy transition through solar energy.”

He said: “We are having some challenges which have to do with integrating solar energy into the national grid. Those challenges, many commissions, have come to the aid of the commission.

“World Bank presently is bringing out a solar auction framework. That solar auction framework, once it commences, will allow the developers and the cost of solar tariff will go down. “That is the essence of the solar auction.

It will open the space for all the contractors in Nigeria to be in it. “In financing and investment, the World has outlined how they will support in the distribution and transmission segment, not in the generation.”

Permanent Secretary, Lagos State Ministry of Energy and Mineral Resources, Engineer Abiola Kosegbe, said there was a deficit in the energy needs of Nigerians and Lagos State residents, in particular.

She stated that Lagos State had set an ambitious target to generate 50 per cent of its electricity from renewable sources by 2030, with initiatives like the “Solar for All” programme playing a crucial role in achieving this goal.

She stressed the need for continued investment in infrastructure, supportive policies, and collaboration to sustain the growth of renewable energy in Lagos and across Nigeria. Kosegbe said:

“Advancement of renewable technologies and the transformative potential for the energy sector. We know that there is a deficit in the energy needs of Nigerians and in Lagos State, in particular.

That cannot just be over-emphasised. “We stand on a new era of advancement in renewable technologies. We need to fill the gaps that we are faced with as we are in Nige

Engaging more marketers in the distribution of fuel produced by the Dangote Refinery and Petrochemicals will greatly enhance easier distribution of the product

ria today. Solar, wind, hydro, bioenergy are not just alternative sources. “They are becoming the backbone of a sustainable energy future. Innovations in these fields are driving efficiency, reducing costs and unlocking new possibilities.”

She noted that focusing on solar power, for example, recent breakthroughs in energy storage were dramatically increasing solar efficiency and making it more accessible than ever.

She added that wind energy too had seen remarkable strides with development of larger more efficient turbines and offshore installations that harness stronger and more consistent winds.

“For Lagos State we have set an ambitious renewable energy target. We are aiming to generate 50 per cent of electricity through renewable sources by 2030. Solar energy is leading the charge with Lagos state government launching initiatives like Solar for all programme, providing affordable solar energy solutions for homes and businesses.

“In Lagos State today, we have seen the solar energy adaption grow by 200% in the last two years. “The advancement in renewable energy technologies are not just shaping the future of energy, they are defining it, with continued innovation and dedication, we have the opportunity to create an energy sector and indeed a society that is clean, resilient and sustainable for generations to come,” she said.

Director-General, Energy Commission of Nigeria, Dr. Mustapha Abdullahi, said both the federal and state governments needed to commission and adequately fund national research programmes on specific solar photovoltaic (PV) component aspects so that it will enhance the localization of some percentage of technology in Nigeria.

His presentation, which focused on advancing solar photovoltaic (PV) technology in Nigeria, was delivered by the Director, Renewable Energy Department, Sulu Bolaji Fulani Ibrahim.

He stated that solar PV holds immense potential to transform Nigeria’s energy landscape, with applications ranging from home systems to large-scale utility projects.

According to him, there is a critical need to adopt the latest solar technologies to ensure cost-effectiveness and value for money. He underscored the importance of policy documents such as the National Energy Policy and the Renewable Energy Action Plan in guiding the development of solar energy.

He added that the strategic use of Nigeria’s mineral resources, such as lithium, is crucial for supporting local content and driving the renewable energy industry.

Industry operators

Stakeholders during a webinar organised by MEMAN), in collaboration with DAPPMAN, CORAN, ARDA and PETROAN which had the theme: “Optimising the Nigerian Oil and Gas Industry,” highlighted key points to address the energy sector.

Noting the implications of recent price hikes in petroleum products, they emphasised the need for full market deregulation and advocated a market-driven pricing mechanism to promote competitiveness and operational efficiency.

For them, the removal of government controls on pricing is essential to foster a more dynamic and responsive industry, while the importance of transitioning towards cleaner energy sources, including Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) is essential.

They also identified investments in renewable energy infrastructure and modular refineries as critical steps for enhancing domestic refining capacity and reducing reliance on imports.

For them, attracting both local and foreign investments is a priority to support infrastructure development in the sector while a clear regulatory framework and targeted incentives were seen as necessary to encourage investment and foster growth.

They also proposed the establishment of a new committee structure in the petroleum sector, inspired by the Bankers’ Committee in Nigeria. This structure would include:

“Midstream and Downstream Industry Coordination Committee, focused on enhancing collaboration within these sectors, chaired by the Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

“Industry Interface Committee: To manage interactions between the upstream and downstream sectors, co-chaired by the ACE and the CCE.”

For the stakeholders, significant investment in infrastructure was needed to enhance distribution and storage of petroleum products, while they advocated for the adoption of new technologies to optimize supply chains, reduce smuggling, and pre vent adulteration.

– They also emphasised that there was a strong emphasis on supporting local refineries to decrease dependency on imported petroleum products and added that freedom for marketers to purchase crude oil from local and international sources and for refineries to enter into processing agreements with retail companies were also proposed.

They said: “Implementing sustainable practices, such as reducing gas flaring, promoting renewable energy use, and investing in carbon capture and storage technologies, is needed to align with global sustainability goals.

“There is the need for a clearer and more supportive regulatory environment with references to the Petroleum Industry Act (PIA) and its provisions. Better implementation of policies is necessary to facilitate easier licensing, investment, and refinery operations.

Last line

“Nigeria has immense potential to become a significant producer of plastics and petrochemical products. It is necessary to leverage the country’s abundant natural gas resources to develop a robust petrochemical industry.

This would reduce imports, create jobs, and support the local economy. “Establishing the necessary infrastructure, such as petrochemical complexes, and adopting policies that encourage local manufacturing and value addition as well as the shift toward producing plastics domestically aligns with the broader strategy of industrial diversification and economic resilience are key.