Nigeria’s Minister of State for Petroleum, Heineken Lokpobiri, advocates for increased investment in the oil and gas sector to catalyse the growth of renewable energy across Africa. He highlights the importance of fossil fuel financing in addressing energy poverty and supporting future green energy development.
During the African Energy Week (AEW) 2024 OPEC Roundtable session in South Africa, Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, called for greater investments in Africa’s oil and gas sector, stressing that such funding could act as a catalyst for the development of renewable energy industries.
Lokpobiri argued that the expansion of oil and gas production would be crucial in addressing energy poverty in Africa, where a significant portion of the population remains without access to electricity.
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According to the Minister, in order to unlock the full potential of renewable energy sources like solar, wind, and green hydrogen, substantial investments are required—funds that are currently lacking in these sectors.
He proposed that fossil fuels could play a pivotal role in financing the energy transition, by providing the necessary capital to support both traditional energy projects and the growth of renewables.
“For countries in Africa, we cannot be told that we should remain in energy poverty, with the low industrialisation that we have,” said Lokpobiri. “Our ambitions are to see how we can raise the funding required for the energy mix, using fossil fuels.”
The Organisation of Petroleum Exporting Countries (OPEC), which was also represented at the event, echoed similar sentiments.
OPEC emphasized that the oil and gas industry should be viewed as part of the solution to the global climate crisis, rather than the cause.
With energy demand projected to rise by 24% by 2050, the organisation highlighted the importance of investments in low-carbon technology, such as carbon capture and storage, to mitigate environmental impacts while meeting growing energy needs.
OPEC Secretary General Haitham Al Ghais explained, “When it comes to the climate crisis, the global oil and gas industry is part of the solution, not the problem.”
He further noted that climate negotiations must consider the diverse capacities of nations and avoid favouring one energy source over another.
“It is not about leaving fossil fuels in the ground. Oil and gas are not the culprit but part of the solution,” Al Ghais added.
The importance of increasing oil production and improving energy access was also emphasized by other African leaders at the session.
With over 600 million people in Africa lacking electricity and 900 million without clean cooking solutions, the development of oil reserves is seen as a critical path to meeting the continent’s energy needs and driving economic growth.
Marcel Abeke, Minister of Petroleum for Gabon and President of OPEC, echoed the call for a unified African voice to combat energy poverty.
Gabon, which is targeting an increase in crude oil production to 500,000 barrels per day in the medium to long term, is also focused on expanding its natural gas exploration and invites further investments in the sector.
“We are open and would like to invest in this sector so that we can drive growth through the development of this sector,” Abeke said, underscoring Gabon’s commitment to using its oil and gas resources to spur economic development and improve energy access.
The conversations at the AEW 2024 roundtable signal a shift towards a more integrated approach to energy development in Africa, where investments in both fossil fuels and renewables are seen as complementary, working together to meet the continent’s urgent energy needs while contributing to global sustainability goals.
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