Birol says Nigeria could double energy investment in five years
Nigeria could at least double investment in its energy sector within five years after joining the International Energy Agency, IEA Executive Director Fatih Birol said during a visit to Abuja.
As TimesLIVE reports, Nigeria became an associate member of the Paris-based agency in July. Its application was unanimously approved by IEA member states, including the United States, Germany, Italy and Japan.
Investment and cooperation
According to Birol, associate membership will help attract capital, deepen technical cooperation and strengthen Nigeria's voice in discussions on global energy policy. He noted that the country needs significant investment to realize opportunities in the oil and gas sectors and renewable energy, including solar power.
“My goal is to at least double the energy investment Nigeria receives today in a very short period, in five years,” the IEA chief said.
Nigeria, Africa's largest oil producer, aims to nearly double output to 3 million barrels per day by 2030. To attract foreign capital, the country is relying on energy-sector reforms, infrastructure upgrades and improved security to counter oil theft after a prolonged period of underinvestment.
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Joint program with the IEA
The IEA and Nigeria plan to sign a joint work program in Abuja. It will provide for cooperation in natural gas, electrification, clean cooking, energy efficiency and the development of energy data.
Separately, Nigeria will work with the agency to improve the collection and reporting of energy data. Market participants and investors had previously pointed to a lack of such data, including statistics on oil production, exports and consumption.
Supply risks
Birol also said that geopolitical tensions and disruptions on key energy supply routes are changing global trade flows. According to him, countries are reviewing energy partnerships and supply chains after market shocks caused by Russia's full-scale invasion of Ukraine and instability on important sea routes.
He added that if traffic through the Strait of Hormuz does not properly resume soon, difficulties could arise with supplies of crude oil, and especially diesel and jet fuel.
