The Minister of Power, Adebayo Adelabu, has called for increased investment in Nigeria’s gas development to unlock the full potential of the nation’s power sector and achieve the Nigeria Energy Transition Plan.

According to Adelabu, the power sector  consumes the largest share of the country’s domestic gas supply.

The minister stated this  on Tuesday at the ongoing 23rd NOG Energy Week, holding in Abuja with the theme, “Showcasing opportunities, driving investment and meeting energy demand.”

Nigeria is aiming to achieve 30 gigawatts of electricity generation by 2030. Adelabu said that 70 percent would come from thermal source.

He explained that the power sector would require over five times what the industry currently utilises from the domestic gas market to achieve the country’s 70 percent thermal energy target with gas-powered generation.

He said: “The domestic gas-power market accounts for 60% (approx. 700 MMSCF Daily) of the total domestic gas supply. This gas quantity currently sustains Nigeria’s 4GW average grid generation capacity.

“In line with the Nigeria Energy Transition Plan vision 30:30, which seeks to achieve 30GW by the year 2030, our energy mix is projected to be 70% (or 21GW) thermal source (most likely gas considering the country’s gas potential) and 30% (or 9GW) renewable source.

“The power sector would require over five times what the industry currently utilises from the domestic gas market to achieve our 70% thermal energy target with gas-powered generation. Additional investments would be needed to increase the country’s gas production to achieve this level of gas supply to the power sector without compromising the export obligations. To this end, I call on the investors here today to strongly consider the investment in the further development of gas production in the country, especially our abundant unexploited Non-Associated Gas reserves.”

To ensure liquidity and catalyse  investments across the value chain, Adelabu said the Federal Government has  introduced a cost-reflective tariff for the sector’s most served grid-tied customer segment.

He urged oil and gas operators  to invest in renewable energy projects in the country to help Nigeria achieve its 2030 target of renewable accounting for 30 percent of the country’s electricity source.

“To briefly spotlight the Federal Government of Nigeria’s recognition of the need for adequate liquidity in the Nigerian power sector to catalyse the much-needed investments across the value chain. The government recently introduced a cost-reflective tariff for the sector’s most served grid-tied customer segment. In addition, presidential approval was granted to resolve the power sector obligations to defray legacy debts to generation and gas companies.

“These actions speak to the government’s commitment to allowing efficient gas supply for the Nigerian power sector and ensuring there’s a clear line of sight for investors to recoup their investments in the country. I am confident that the Federal Government of Nigeria is committed to ensuring a viable and bankable power sector, and we are convinced that the industry is investment-ready.

“To achieve our 30% Renewable Energy target, I urge you to consider the significant benefits of investing in renewable energy projects in Nigeria. Our country boasts abundant resources, particularly solar, wind, and hydro energy, providing a remarkable opportunity for sustainable growth. The renewable energy market has grown tremendously in the last decade, with over $1 billion leveraged by Multilateral Development Banks.

“By channeling investments into these renewable sources, we can effectively meet our carbon emission targets while playing a crucial role in combating climate change.

“As demonstrated by our recently completed $550 million Nigeria Electrification Project, investing in renewable energy helps reduce carbon emissions, enhance energy security, and support economic development. Additionally, to complement the NEP, the $750 million DARES project would provide electricity to 2.5 million people in Nigeria by deploying solar home systems and mini-grids. These investments will propel Nigeria toward achieving its desired energy mix and transition targets,” the minister added.