As countries undergo a transition to clean, low carbon sources of energy at a record rate and scale, new technologies are required to replace fossil fuels in an effort to shift in the direction of a carbon neutral economy at the earliest. Being ahead of this transition is a matter of strategic importance for all countries, especially Nigeria, which is one of Africa’s largest economies and anticipated to rank among the top ten economies of the world by 2050. Besides, it is not in doubt that energy resources are among the most important assets of any nation.
It is recognised that high rate of industrial growth is a function of the amount of energy available and the extent to which that energy is utilised. In total, Africa’s electricity consumption from 1980 to 2001 grew on the average by 3.1 percent per year. Africa’s per capital demand for electricity has declined in comparison to the ones achieved in North America and the Middle East; making Africa have the smallest per capita consumption of electricity in the world. Considering these, Nigeria is pursuing an energy transition plan to promote economic growth and encourage investments in renewable energy to reduce carbon emissions while utilising hydrocarbon resources such as natural gas as the transition fuel.
Nigeria is also rich in water resources such that many of its 36 states are named after rivers. In addition to the surface water found in nearly every part of the country, we have enormous groundwater resources capable of providing millions of gallons of water per day to people across the country. Nigeria’s water resources are a lot higher than many African countries, especially those in the southern and northern regions of the continent. With the abundance of renewable energy and water resources in Nigeria, the country is naturally well gifted with the feedstocks for hydrogen fuel cells. This is an opportunity for Nigeria to generate alternative energy to cater for its growing population by complementing the existing technologies to attain energy sufficiency and economic growth. But beyond the potential for clean hydrogen being a game changer for the Nigerian economy, it will also create enormous amounts of good paying green jobs.
But there is also the need to promote private sector exchange to support the energy transition. This is because the success of the energy transition will involve all of us working together. To get the hydrogen technology standards to an industrial level and actively shape the market throughout the entire value chain would require robust public and private sector partnerships. It will also entail courage and drive along with a strong belief in the ultimate success of the energy transition. The South American country of Chile is perhaps one of the best-known examples of how partnerships among political leaders, businesses and society can work together to achieve the world’s first integrated commercial large-scale project called Haru Oni. The Haru Oni project is often cited as an outcome of work driven by dedicated partners who never collaborated in this way before. Nigeria can turn big ideas into concrete actions when we work together across borders. The task ahead is to continue to find ways in which to scale up the industry for the economic production of hydrogen from renewables and water. And all signs seem to be pointing towards the right direction as the costs of renewable electricity needed to produce green hydrogen are falling and so are the cost of electrolysers that split water into hydrogen and oxygen. These are all opportunities that Nigeria can effectively utilise to stabilise its economy, and march into modernity with the rest of the world.