Afreximbank boosts energy transition with 10,000bpd investment
Afreximbank
Afreximbank boosts energy transition with 10,000bpd investment
As global funding shifts away from fossil fuels, Afreximbank has committed to backing investors with capacity to produce 10,000 barrels of oil per day (bpd)
Minister of State for Petroleum Resources, Heineken Lokpobiri, disclosed this at the Practical Nigerian Content(PNC) Forum in Yenagoa, Bayelsa State on Wednesday.
He admitted that the global shift towards cleaner energy sources presents both a challenge and an opportunity, saying while Nigeria remains committed to harnessing its hydrocarbon resources, it must simultaneously explore opportunities in renewable energy and gas, which align with the global drive for sustainability.
He added that collaboration with international and indigenous players was crucial to ensuring that Nigerian Content initiatives thrive in a dynamic global environment.
Lokpobiri noted that the Africa Energy Bank is a key pillar in the endeavour, providing a robust financing mechanism to support large-scale energy projects and foster sustainable development across the continent.
According to him, as Africa looks to integrate its energy markets, there is a compelling need for Nigeria to lead, assuring that the African Continental Free Trade Agreement (AfCFTA) offers a framework to position Nigerian enterprises at the forefront of regional trade and collaboration in the energy sector. “Additionally, the Africa Energy Bank presents a transformative opportunity to mobilise funding for energy projects across the continent, driving sustainable growth and enhancing Nigeria’s leadership in the African energy landscape.
As the host country for this transformative institution, we are positioned to unlock unprecedented opportunities for the continent.
At this juncture in our nation’s development, we stand at the crossroads of opportunity and responsibility. The successes we have achieved in embedding local content into key sectors, particularly oil and gas, demonstrate Nigeria’s resilience, innovation, and capacity for growth. Yet, there is more to be done as we look to the future,’’
Over the past decade, he explained that the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act) has served as a cornerstone in local capacity building through the growth of indigenous companies, significant job creation, and a reduction in capital flight.
Through the strategic initiatives by the Nigerian Content Development and Monitoring Board (NCDMB), he said the country has achieved increased local content in the oil and gas sector which has grown from less than 10 per cent in 2010 to over 54 per cent today.
This, he said, has led to thousands of Nigerians been trained to international standards, ensuring they can compete globally while investments in fabrication yards, pipe mills, and engineering hubs have spurred industrialization.
“While these achievements are laudable, they also present us with a challenge on how we scale these successes and replicate them across the industry? As we reflect on the journey so far, we must also look ahead to the opportunities and challenges that lie before us among which is the ongoing Onshore divestments.
“With international oil companies transitioning their assets to indigenous operators, we have a golden opportunity to deepen local expertise, drive operational excellence, and build globally competitive Nigerian companies. However, we must ensure that our regulatory framework supports these transitions effectively’’.
