An Energy expert, Prof. Toyin Ashiru, has called on the Federal Government to adopt proactive economic revolution policies to protect manufacturing, oil and gas, power and other sectors to mitigate negative COVID-19 economic impact.
Ashiru made the call on Monday at a Webinar organised by the Nigerian Institute of Electrical and Electronics Engineers (NIEEE) tagged “Impact of COVID-19 on Nigerian Energy Industry: Challenges, Opportunities & Way Forward”.
According to him, COVID-19 pandemic presents an unusual opportunity for us as individuals, businesses and a nation to position for the new economic revolution.
He said the future would only favour those who worked with reduced human interaction, development of local capacities and optimisation of resources, renewable energy, compact, self-sustained power source and digital transformation, among others.
Ashiru, a fellow of the Nigerian Society of Engineers enumerated the various vulnerabilities in various sectors of the global and nation’s economy and stressed the need to brace up to the challenges on new risks and explore the opportunities.
He lamented the glut affecting fuel and diesel prices and the downturn in power policies, generation, distribution and ability to pay for consumption as well as disrupt consumption patterns.
“COVID-19 pandemic and global economic recession necessitate sound government policies and enhanced investments are more important and necessary than ever to enhance the economic transformation.
“Ensure sufficient, affordable, reliable energy for all citizens; and drive inclusive, just and sustainable, energy transitions,’’ he said.
Ashiru said that project financing was affected due to oil price collapse, drop in manufacturing, world experiencing highest debt levels of the past 150 years, capital flights due to investors’ withdrawal and declining market capitalisation.
“This is the time to privatise the refineries and also apply organisational review of NNPC operational costs,” he said.
The don also called for permanent removal of fuel subsidy and rapid development of the nation’s gas policies.
“This is the time to build civic trust by removing subsidy and applying reform mechanisms such as the unbundling of NNPC and passage of the Petroleum Industry Bill.
“Going forward: an efficient, secure, affordable and sustainable power sector is vital to Nigeria’s economic recovery and transformation. Enhancing investments in new grids – national and mini-grids and in the off-grid sector as well as generation facilities.
“Setting bold energy sector priorities and plans today can enable much-needed investments to stimulate broader economic growth tomorrow, including creating employment opportunities and creating wealth,” Ashiru added.
Also, NIEEE National Chairman, Mr Kings Adeyemi, said the coronavirus outbreak disrupted normal socio-economic activities in all sectors, hence the need for urgent measures to stabilise the energy sector.
“Though energy is a critical enabler of economic growth but the shock-waves of COVID-19 pandemic have pierced through the nerves of the economy and bringing global economy to the state of coma.
“It is a fact that the stability of global energy markets is critical to economic sustainability during and after COVID-19. Life must continue.
“In the midst of this crisis, there are opportunities to consider a new energy order to enable the energy transition a sustainable way. We need to explore unprecedented global collaboration to stabilise the energy market.
“It is also important to consider unorthodox intervention in the energy markets and global collaboration to support the recovery phase, once the acute crisis subsides,” he said.
Source: NAN
