Energy cost, others affecting growth in Nigeria –Report

By Clement Alphonsus

Where energy is available in African countries, it is often expensive, inefficient, polluting, and unreliable, the latest February 2023 report of the International Gas Union, in partnership with Hawilti Limited, has stated.

It also pointed out that Nigeria and other nations on the continent were energy-poor despite the presence of abundant gas in Africa.

Hawilti, a pan-African investment research agency and advisor to businesses, investors, public and private institutions, as well as governments in Africa, released the report in conjunction with IGU, with focus on gas for Africa.

The study assessed the potential for domestic gas resources to energise Africa in line with the global energy transition. The African Energy Commission and the Africa Finance Corporation endorsed the report and its findings.

It stated that domestic gas resources could improve the lives of Africa’s young, increasing population, and deliver the energy it needs to develop within a just energy transition.

“Africa has the lowest energy per capita in the world, while the average electricity use of a sub-Saharan Africa resident is lower than that of a household fridge in the United States,” it stated.

Energy experts at the International Gas Union and Hawilti Limited explained that domestic natural gas could help to alleviate Africa’s energy poverty.

“Africa’s domestic gas markets remain under-developed or non-existent, especially south of the Sahara, and much of Africa’s abundant natural gas resource development has been for export to the rest of the world.

“Africa produces over 280bcm of natural gas, while its domestic demand is just above 160bcm,” they stated in the report.

The report showed that Africa had a fifth of the world’s population and represented only three per cent of global emissions.

“If Africa consumes 50 per cent (90 bcm/y) more natural gas by 2030 than it does today, it would generate cumulative CO2 emissions of 10 gigatons, taking its share of global emissions to 3.5 per cent by 2050, according to the IEA (International Energy Agency),” the report stated.

It further stated that in the short-term, natural gas could also provide an immediate emissions reductions benefit when used to replace higher emitting energy sources, such as biomass, wood, charcoal, coal, and heavy fuel oil.

“For example, when replacing coal with natural gas in power generation, Africa can achieve a reduction of 50 per cent in greenhouse gas and more than 90 per cent in air pollution emissions,” the experts stated.