July 18, 2022
A leading global management consulting firm, Boston Consulting Group (BCG), has commended the Nigerian government for the renewed efforts to transition from fossil fuel by leveraging the country’s abundant gas reserves and electric vehicles.
The company gave this commendation following the declaration by the Group Managing Director (GMD) of Nigeria National Petroleum Company Limited (NNPC), Mallam Mele Kyari, at the just concluded Nigeria Oil and Gas conference in Abuja, that the government is focusing on the development of gas as an energy transition fuel.
Partner and Associate Director at BCG Nigeria, Oluseun Solanke, said Nigeria’s energy transition plan is consistent with the Paris Agreement to keep global warming to less than 2oC, to which Nigeria has consented.
She stated that gas was a good choice as an energy transition fuel due to its greater cost competitiveness, ability to replace fossil fuel use in many industries and reduce the carbon footprints in the country.
Solanke explained that the country’s gas reserves of about 206.53 trillion cubic feet were sufficient to meet local demand and for exportation.
To achieve significant growth in the energy transition process, he pointed out that investment in gas infrastructure and charging ports for electric vehicles will accelerate the plans.
She said, “At a time when global economies are striving to recover from the impact of coronavirus and a slowing economy, the need to switch to sustainable energy is imperative. The ambitious plans of the government to convert car engines from petrol to gas-powered engines should be supported with infrastructure buildout such as storage facilities, pipelines and service stations that will enable access to gas supplies and boost consumption.
“Also, investment and adoption of gas technologies and innovation have proven to deliver a reduction in direct emissions, thereby enabling the decarbonisation goals to be reached.”
At the NOG conference, Kyari identified gas as a critical resource in Nigeria’s energy mix and transition plans, saying that opportunities to create wealth for the country had been seen in the growing local and international demand for gas.
The NNPC Limited is encouraging the production and use of about one million electric vehicles by partnering with indigenous car manufacturers.
BCG’s team of experts are dedicated to exploring and developing valuable new insights from business, technology, and energy as well as helping leaders identify their greatest opportunities.