The debate over oil extraction in Nigeria intensifies as the country grapples with the dual pressures of economic development and the global energy transition. Oando Energy Resources, a prominent Nigerian energy company, is advocating for increased crude oil extraction to drive socio-economic growth and industrialization. Dr. Ainojie Irune, Executive Director of Oando Plc, warns against a rapid shift to renewable energy, arguing that Africa, particularly Nigeria, cannot afford such a transition due to widespread poverty and a pressing need for economic stability. He emphasizes that oil and gas will continue to play crucial roles in the energy landscape, even as the world moves towards cleaner energy sources [017921e9].
In a recent analysis by Tony Attah, it is highlighted that the global population is expected to surge from 8 billion to over 10 billion by 2050, with Africa's population growing by 67% and Nigeria's by 100%. This demographic shift is projected to drive a 40% increase in global energy demand, underscoring the continued relevance of fossil fuels, despite growing criticism regarding their environmental impact. Nigeria boasts significant energy resources, with 37 billion barrels of oil and 210 trillion cubic feet (TCF) of gas reserves [ef117142].
Oando is committed to supporting Nigeria's economy through various renewable energy projects, including solar, wind, and waste-to-value initiatives. However, the company also stresses the need for a balanced energy mix that incorporates the country's natural gas reserves to stimulate economic growth and job creation. The call for a state of emergency in the oil and gas sector reflects the urgent need for massive investments in gas development to revitalize Nigeria's electricity generation capacity, which currently lags behind that of other nations [ef117142].
Chevron Nigeria has echoed the sentiment for collaboration among stakeholders in the oil and gas industry, emphasizing that such partnerships are essential for sector growth and maximizing economic benefits. As the debate continues, there is a growing recognition of the necessity to balance economic development with environmental sustainability. Nigeria's energy future hinges on effectively harnessing its gas resources while also exploring renewable energy options to achieve a comprehensive and sustainable energy strategy [017921e9].