In Key Policy Shift, US Halts Plan to Pressure Nigeria, Others to Jettison Fossil Fuels

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·    Trump govt says it’s nonsensical, shameless, relics of colonialism 

·    New direction to boost FG’s plan to harness 37.5bn oil barrels, 209tcf of gas

·    Adelabu seeks American partnership to tackle Nigeria’s energy poverty 

CHIGOZIE AMADI

In a major shift in its position on the harnessing of fossil fuels by resource-rich African nations, like Nigeria, the US government at the weekend described the existing relations in the energy sector, driven by that country, as nonsensical, shameless and a relic of colonial attitude.

The new policy direction by the Donald Trump administration is a big relief for Nigeria, which is desperately in need of foreign funding to fully explore and exploit its natural resources that have largely been untapped due to insufficient financing.

ExxonMobil and Chevron, two of the biggest oil companies with massive operations in Nigeria, are American multinationals.

Speaking at the weekend in Washington DC, at the 10th edition of the annual “Powering Africa Summit,” US Energy Secretary, Chris Wright, a keynote speaker at the event, told African leaders that the Trump administration will not dictate to Africa how it intends to put its abundant resources to use.

The global shift towards cleaner energy had significantly hindered Nigeria’s ability to fully exploit its vast natural resources, particularly oil and gas, as the West continued to pressure Nigeria and other African countries to move away from fossil fuels in favour of what it said were cleaner sources of energy.

Following the push, the demand for Nigeria’s primary exports gradually declined, as investment thinned out and stranded assets increased, making it increasingly difficult for Nigeria to secure funding for new exploration and production efforts. The last time Nigeria got a major investment before the new regime was over 13 years ago.

Despite Africa’s less than three per cent contribution to global methane emissions, the US and Europe had continued to pressure the continent to slow down the production of oil as well as other “dirtier” hydrocarbons.

In 2022, President Joe Biden sent his Special Envoy on Climate Change, John Jerry, to try to convince Nigeria on why it should reduce the harnessing of its fossil fuels, despite over 80 million Nigerians being without reliable power supply. Up to 80 per cent of Nigeria’s power supply is from gas.

However, Nigeria is banking on its over 37 billion barrels of oil reserves and 209 trillion cubic feet (tcf) of gas to boost its industrialisation drive.

While solar, wind, and hydropower have potential, Nigeria lacks the necessary financial resources and technological expertise to fully capitalise on these alternatives, placing it in a difficult position.

But Wright, who received a resounding ovation from his audience, in a video posted by the Voice of America (VOA) and seen by THISDAY, argued that the climate change conversation did not rank among the top 10 biggest problems in the world.

He said, “Our goal is that Africa needs massively more energy. Africans will do that. Africans will deliver that. The United States is thrilled to partner with you in that endeavour.  At least this government has no desire to come and tell you what you should do with your energy system. (That) this is good and this is bad. That’s just so nonsensical.

“It’s a misunderstanding of energy. It’s a paternalistic post-colonial attitude I just can’t stand.

“Let’s look at the United States for a second. We have the electricity grid; we have states where their biggest source of electricity is hydropower. We have states where their biggest source of electricity is oil. We have lots of states where their biggest source of electricity is coal.

“Most states, their biggest source of electricity is natural gas. But it’s different across all of our states. There are different resources there. There are different needs there. There are different degrees of an economy that’s decided by people in marketplaces.

“Africa has enormous natural resources and we’ve had years of Western countries, including my own, shamelessly saying, don’t develop coal. Don’t develop coal. Coal is bad. That’s just nonsense. Hundred per cent nonsense.

“Coal has been the largest source of global electricity for a hundred years. Coal transformed our world and made it better, extended life expectancy and grew opportunities. And coal globally will be the largest source of electricity for decades to come. That’s not a policy. That’s not a desire. That’s just a reality.”

As a scientist, Wright pointed out that he had spent his whole life digging into the issues. He explained that he has been speaking about climate change for 20 years, admitting that though it is a real physical phenomenon, there has to be trade-offs.

The US energy secretary maintained, “But if you look at the physical data of climate change and read the economics around climate change, it is impossible to come up with climate change in the top five of the world’s problems. If you’re really honest, you can’t put it in the top 10 of global problems.

“We should be aware of it. We should think about it. That technology evolution will ultimately drive down greenhouse gas emissions, but making it the source of policy or direction, this has not only been hamstringing for Africa, for finance or investment, telling what’s good and what’s bad, it’s been destructive in our own societies.

“We’ve had major industrial economies that are de-industrialising. They’re not lowering greenhouse gas emissions.

“They’re just making their own energy more expensive and less reliable. And everyone that makes energy intensive stuff is just leaving those countries to another locale. That’s not reducing greenhouse gas emissions. That’s just moving emissions.”

Stating that the only goal of energy was to expand human opportunity, make people live longer and healthier, as well as increase food security, Wright said it did not matter where the energy came from.

He reiterated that the Trump administration will not stop Africa, pointing out that the government has the most climate-knowledgeable people because it works with numbers, data, science and economics, and trade-offs.

“But are we going to continue the days of climate change as more important than human lives and human opportunity? Absolutely not,” he stressed.

Other Trump officials, who spoke at the event, which took place near the White House, said the days of shying away from fossil fuel investment in favour of renewables were over.

“There are no restrictions anymore on what kind of energy we can promote,” a senior State Department official and former Ambassador to Guinea, Troy Fitrell, said.

Despite the advice for Nigeria to abandon its fossil fuels, Minister of State Petroleum (Oil), Heineken Lokpobiri, had always said it will be unfair to compel Africa, which contributed a meagre amount of emissions, not to exploit its resources.

At the just concluded Nigeria International Energy Summit (NIES), Lokpobiri, again, emphasised that Nigeria did not intend to rely on international aid or grants to facilitate its transition from fossil fuels to cleaner energy sources. He argued that massive investment in the oil sector must continue.

Recently, some African countries floated the $5 billion African Energy Bank (AEB), in collaboration with Afreximbank, to accelerate the exploitation of hydrocarbons on the continent.

Chief Executive of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, had also argued that an immediate “phase-out” of fossil fuels in Nigeria was impossible. Komolafe emphasised that the energy transition strategy should align with Nigeria’s national interests.

Meanwhile, Minister of Power, Chief Adebayo Adelabu, at the event, emphasised the need to strengthen collaboration between the US and Africa to tackle energy poverty, drive sustainable development and foster economic growth.

Speaking at the summit, Adelabu, who represented Nigeria, highlighted the significant progress achieved through initiatives, such as Power Africa, which he said had played a pivotal role in expanding electricity access, mobilising investments, and supporting policy reforms across Nigeria and the African continent.

The summit, according to a statement by the minister’s spokesman, Bolaji Tunji, brought together African leaders, global investors, and energy sector experts to address Africa’s energy challenges and unlock sustainable development opportunities.

The minister also commended the recent launch of “Mission 300”, an ambitious initiative aimed at providing 300 million Africans with electricity access by 2030. He called for stronger partnerships among stakeholders to achieve the goal, underscoring Nigeria’s commitment to leveraging technology transfer, infrastructure development, and capacity building to accelerate energy transition and drive economic growth.

Adelabu also met with Wright, where the US official reaffirmed his country’s commitment to partnering with African nations to address energy poverty and promote sustainable development.

He expressed enthusiasm for deepening collaboration in renewable energy, off-grid solutions, and private-sector investments.

Adelabu said other outcomes from the summit included a platform for building strategic relationships with global investors and industry leaders.