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Nigeria’s Energy Crossroads: The Dangote Refinery And Quest For Sustainability

Introduction

Nigeria is currently at a pivotal moment where the need for economic growth is pressing, but so is the urgency to tackle environmental challenges. The Dangote Refinery, a massive oil refining project, has sparked a heated debate that encapsulates these complex tensions. This analysis delves into the heart of the matter, examining the perspectives of key stakeholders and exploring potential pathways forward.

The Contentious Landscape: Economic Benefits vs. Environmental Sustainability

Stark contrasts in priorities mark the discourse surrounding the Dangote Refinery. David Hundeyin, as evidenced by a recent publication (https://x.com/DavidHundeyin/status/1822059280973091320?t=JqK2LYeTiGYWhUvggNaD2A&s=08), champions the project’s economic benefits, highlighting job creation, reduced reliance on imports, and national sovereignty. Conversely, Chukwumerije Okereke, in an article titled “David Hundeyin and Dialogue Earth: Addressing Misinformation about Climate Change Diplomacy”(https://www.environewsnigeria.com/david-hundeyi-and-dialogue-earth-addressing-misinformation-about-climate-change-diplomacy/), advocates for a more balanced approach that prioritises environmental sustainability and diversifying Nigeria’s energy sources.

Hundeyin views Western-backed environmental concerns as a veiled attempt to perpetuate Africa’s dependence on raw materials. His stance underscores the economic imperative, often at the expense of ecological considerations. In contrast, Okereke acknowledges the refinery’s economic potential but emphasises the critical need to mitigate its environmental impact and transition towards a low-carbon future. He advocates for a balanced approach that includes investments in renewable energy and international cooperation.

Balancing Act: Nigeria’s Refinery Dilemma

The contrasting viewpoints of Hundeyin and Okereke illuminate the complex role of refineries in Nigeria’s development trajectory. Striking a balance between economic growth and environmental responsibility is paramount to securing a sustainable energy future.

A comprehensive approach is necessary, encompassing:

  • Rigorous Environmental Stewardship: In-depth assessments of existing refineries, including Dangote’s, are crucial to mitigate potential environmental hazards.
  • Energy Diversification: Transitioning towards a balanced energy mix that integrates renewable sources is indispensable.
  • Robust Regulatory Framework: Enforceable environmental regulations are essential to safeguard the nation’s ecological health.
  • Human Capital Investment: Developing a skilled workforce is pivotal for a smooth transition to a sustainable energy landscape.
  • Global Collaboration: Partnerships with developed countries can accelerate technological advancement, financial support, and knowledge transfer.
  • Equitable Transition: Prioritiing the well-being of oil and gas-dependent communities through policies that foster a just transition to a low-carbon economy.

By adopting these strategies, Nigeria can harness the economic potential of its refineries while safeguarding its environment and ensuring a prosperous future for all its citizens.

The Government as a Catalyst

The Nigerian government has significant influence in shaping the country’s energy path. Its policies, investments, and regulations impact energy production, distribution, and consumption. Here’s how the government can steer Nigeria towards a cleaner, more resilient energy future:

  • Sustainable Development Policies: Create an enabling environment for both the oil and gas industry and the renewable energy sector.
  • Fiscal Incentives: Offer tax holidays and subsidies to encourage investment in renewable energy projects while ensuring fair competition.
  • Research and Development: Support research and development initiatives to advance renewable energy technologies and energy efficiency.
  • Infrastructure Development: Modernise the electricity infrastructure to integrate renewable energy. This involves upgrading power lines, substations, and adopting smart grid technologies. Energy storage solutions are also essential. These improvements will enhance reliability and accommodate the variable nature of renewable energy sources.
  • Public Awareness: Conduct extensive public awareness campaigns to educate citizens about the importance of energy efficiency and the benefits of renewable energy.

The Role of International Finance

International finance plays a crucial role in supporting Nigeria’s energy transition. Here are key areas of focus:

  • Direct Investment: Funding large-scale renewable energy projects.
  • Debt Financing: Providing loans for energy infrastructure development.
  • Grants and Aid: Supporting research, capacity building, and policy formulation.
  • Technology Transfer: Facilitating the transfer of clean energy technologies.
  • Risk Mitigation: Offering financial instruments to reduce investment risks associated with renewables.

Conclusion

The path Nigeria chooses will define its economic prosperity and ecological legacy. A harmonious blend of economic growth and environmental stewardship is essential to establish the nation as a global leader in sustainable development. While the Dangote Refinery represents both opportunities and challenges, its potential to drive innovation and progress underscores the importance of responsible management.

Realising this vision demands resolute or strong political will/leadership, sound governance, and an unwavering commitment to a sustainable future for generations to come. Nigeria stands at a pivotal moment, and the decisions made today will echo through the annals of its history.

By Eugene Itua, Ph.D (Regional Coordinator, West Africa Capitals Coaliton Hub and Nigeria Chair, International Institute of Risk and Safety Management)

David Hundeyi and Dialogue Earth: Addressing Misinformation About Climate Change Diplomacy

The recent write up by the highly respected and admired David Hundeyin is characteristically provocative. He makes some crucial points, which are communicated in the typical David Hundeyin’s style.

His sharing of the commissioned brief he received from Dialogue Earth in the spirit of full openness is commendable, as is his statement that Nigeria’s and Africa’s future should be decided by Nigerians and Africans themselves. Without a doubt, this includes how we decide to use our hydrocarbons.

I have never interacted with Dialogue Earth talk more of receiving funding from them. I do not hold brief for them. However, as a leading African climate policy expert, I believe that much of David’s presentation is simplistic, bordering on sensationalism, and has the potential to lead to a conclusion that does not advance a healthy debate about the economic impact of climate change in Nigeria and how we should best respond to ensure Nigeria’s long-term economic sustainability.

David claims that the objective of Dialogue Earth is to get the Nigerian government to kill the refinery. However, the brief he shared contradicts this conclusion, emphasising that the primary goal of the essay is to increase awareness of the refinery’s paradox within the context of Nigeria’s energy transition plan and its commitment to achieving net zero emissions by 2060. This, in my view, is a very valid question and one that I have raised and discussed in a recent article on the Dangote refinery and Nigeria’s climate commitment.

While I wholeheartedly support the refinery for economic reasons, it is self-evident that its operation, as well as the Petroleum Industrial Act (PIA), pose challenges to Nigeria’s climate ambitions. This tension and how best to resolve it call for a calm national discussion. I’ve previously recommended that the government should establish and adopt clear policies to help harmonise our climate change, economic, and energy security objectives.

These could include carbon trading, carbon tax, carbon sequestration, carbon capture, and carbon storage. Many of these measures are outlined in Nigeria’s Climate Change Act and, if properly implemented, they have the potential to generate billions of dollars for the government while simultaneously promoting economic growth. And by the way, a thorough environmental and social impact study in relation to the refinery, as suggested in the brief David shared, is already required by our existing legislation and essential for social, environmental, and economic reasons.

David also makes several other bogus or, at best, unsubstantiated claims in the article. For example, I see nothing in the brief he shared to conclude that Dialogue Earth does not care about human poverty caused by exporting raw materials and importing refined fuel, that they do not consider the emissions generated from this process bad for the environment, or that their objective is to keep Africa poor. This type of conclusion is reached by assuming that the only alternative to questioning the refinery’s climate change implications is to support the current state of energy poverty and the unpatriotic policy of exchanging crude oil for imported refined products, which is clearly bad for Nigeria’s economy and the environment.

A more nuanced and truthful position is that the majority of Western environmental NGOs opposed to fossil fuel investment in Africa actively support alternative policies that promote renewable energy investment and poverty reduction in Africa. They envision a clean Africa fuelled by renewable energy, which will provide Africa with a global economic advantage.

Where I believe Western environmental NGOs frequently go wrong is that they push Africa too hard on green transition and leaving the oil in the ground while not lobbying or campaigning hard for enough financial support and technology transfer to develop renewable energy capacities in Africa. I’ve mentioned this issue several times in my discussion on the subject.

Several studies have found that countries can increase their economic competitiveness by investing in renewable energy. Each country must consider, select, and pursue a strategy that is sensitive to its energy demands. In this regard, I am certain that strengthening Nigeria’s local refining capacity within the context of a border economic diversification agenda is the right strategy to address climate change, create jobs, and grow our economy.

Climate change is real, and it is projected to cost Nigeria up to $460 billion by 2050. It is one of the most important economic development challenges facing Nigeria and other African countries.

While investing heavily in wind and carbon capture technology, the UK has used its coal power plants more than ever before in recent years to meet high energy demand due to the extremely harsh winter. While China is the world’s largest solar generator, it is also the most polluting. In both cases, countries are attempting to strike a balance between climate change, energy security, and long-term economic competitiveness. Both require risk analysis, scenario planning, and common sense based on observable trends. Nigeria must also think and act strategically, rather than hiding her head in the sand.

The international climate agreement calls for a rapid transition away from oil and gas towards renewable energy. The agreement calls for a tripping renewable energy portfolio by 2030. Despite having an abundance of solar energy, solar currently contributes less than 0.5 percent to our grid.

Nigeria can gain a significant economic advantage by diversifying its economy and embracing the green economy. This does not require cutting all oil and gas production tomorrow.

David is clear he thinks climate change is a religious belief, and it is obvious that this informed his interpretation of the brief he received and the commentary he provided. I vehemently disagree that climate change is not real and is an issue that demands urgent attention.

It should be underlined that the advocacy of various Western NGOs and citizens to encourage a speedy green transition is not limited to Africa but is strong and effective in their home nations. Climate advocacy and action is a major social, political, and economic issue in the United Kingdom, the United States, and other industrialised countries. It is a major topic in election debates and a dividing line between the major political parties.

However, Western environmental NGOs such as Dialogue Earth frequently make the error of promoting the same cause in Africa without a thorough knowledge of the African psyche, history, and economic circumstances. And by doing so, they risk being charged with climate colonialism, a phrase I’ve used and addressed in prior writings.

Respectfully, I believe David should have simply declined the request to research and write the brief on the grounds that climate change policy and economics are not his areas of expertise.

However, by asking a non-expert to write an opinion post on the Dangote refinery and climate change, Dialogue Earth demonstrated a lack of intelligence and prudence, and can thus be accused of being naive, desperate, and foolish. They have brought this ant-infested wood upon themselves, and they must now suffer the inquisition, blame, contempt, and opprobrium that come with it.

However, it will be detrimental to Nigeria if David’s comments make it difficult to have a mature and science-based debate about how Nigeria can best balance its climate change and economic growth goals in order to achieve long-term climate resilience and sustainable development in a rapidly evolving green transition global economy.

By Professor Chukwumerije Okereke

Chukumweije Okereke is a Professor of Global Governance and Public Policy at the University of Bristol’s School of Policy Studies, as well as the Director of the Alex Ekwueme Federal University Ndufu-Alike Centre for Climate Change and Development in Ikwo, Nigeria

Lagos Wins State With Best Climate Governance Performance

By: Michael Mike

Lagos State has been ranked top among the 36 states of the country on Climate Governance Performance.

Gombe States was ranked second with Ebonyi State taking the Number 3 position, both Borno State and Ekiti State jointly ranked fourth.

Oyo, Kano and Zamfara States were ranked 34, 35 and 36 respectively, in the result announced on Thursday in Abuja at an event organised by the Departmentof Climate Change in the Federal Ministry of Environment in conjunction with Society for Planet and Prosperity (SPP).

Speaking at the event, the President, SPP, Prof. Chukwumerije Okereke decried that Nigeria is ranked as one of the most climate-vulnerable countries in the world even though its contribution to global greenhouse gas (GHG) emissions is minimal, noting that the country is vulnerable due to its complex agroecological zones, burgeoning urban and rural populations, extensive coastlines which is susceptible to sea level rise, and weak climate governance systems.

He added that with its significant impact on health, food security, livelihood, and economic development, climate change is emerging as a hot topic in Nigeria, increasing featuring in national discussions and political debates, noting that Nigerian government is committed to achieving net zero levels 2060 and has initiated some projects at different levels to facilitate the process.

He said: “The effective climate change governance at the subnational level demands the consideration and mainstreaming of climate action into all aspects of government policy-making and development planning. This must be strategically done with clearly set goals and an articulation of the method that will be used to attain the spelt-out goals.”

Okereke disclosed that the template for effective climate governance at the subnational level are vision and objectives, political will, institutional arrangements, policy framework, legal and regulatory framework, climate action plan and policy implementation, financial mechanisms, stakeholders engagement, training and capacity building, monitoring and evaluation, communication and awareness and integration with national and global efforts.

Speaking at the event, the Minister of Environment, Balarabe Lawal said “Climate governance at the Sub-National level is essential for several reasons. It is at this level that the impacts of climate change are acutely felt. Lands in coastal communities are devastated by erosion while desertification is rampant in the Northern region of the Country. The Sub-National Governments are often at the forefront of implementing policies and actions that directly affect the lives and livelihoods of the people at the grassroots level, therefore, their role in driving climate action is indispensable.”

He noted that the Sub-National Climate Governance Performance Ranking was more than just a ranking, but a tool for motivation, collaboration, and accountability, adding that: “It highlights the best practices, identifies areas for improvement and fosters a spirit of healthy competition among our States and Local Governments. By celebrating the achievements of the top performers and providing support to those lagging behind, we can collectively elevate our national climate response. The criteria for this ranking are rigorous and comprehensive, reflecting the multifaceted nature of climate governance. The process encompasses policy formulation, implementation effectiveness, stakeholder’s engagement, resource allocation and measurable outcomes. This holistic approach ensures that our assessment is not merely quantitative but also qualitative, capturing the distinction of effective climate governance.”

On his part, the Minister of State for Environment, Dr. Iziaq Salako said: “Nigeria, like many other nations, is experiencing the far-reaching consequences of climate change. From intensified droughts to severe flooding, the impacts are evident across our states, affecting lives, livelihoods, and our natural ecosystems. It is against this backdrop that we must recognize the pivotal role of our subnational governments in climate action.”

He added: “Today’s event is therefore to highlight the commitment of our 36 states and the FCT to climate governance and the strides they have made in implementing policies, strategies, and actions to combat climate change. The Subnational Climate Governance Performance Ranking serves as a platform to celebrate these successes, identify areas for improvement, and foster healthy competition that drives progress.

“As we reflect on the results of the ranking that will soon be announced, it is essential to remember that this is not merely an evaluation exercise. It is a call to action, a reminder that climate change requires a collaborative and inclusive approach. Each state has unique challenges and opportunities, and it is through sharing best practices, learning from one another, and working together that we can build resilience and ensure a sustainable future for all Nigerians.”

Gombe Clinches Top Spot in FG’s Climate Governance Performance Ranking

Gombe State has received an award for emerging with an AA rating in the climate governance performance ranking among the 36 states of Nigeria.

This recognition was bestowed on Gombe State by the Federal Ministry of Environment in collaboration with the Society for Planet and Prosperity (SPP) during a high-level event held in Abuja.

The state was ranked second in the country, accumulating 128 points, just behind Lagos, which clinched the first position with 182 points. Ebonyi, Borno, and Ekiti states followed in third and fourth positions, respectively.

The Minister of Environment, Balarabe Abbas Lawan, who chaired the event, stated that this first-ever rating and ranking of climate governance performance among states is aimed at promoting climate awareness and encouraging greater action at the subnational level.

He commended the Gombe State Government and other high-performing states for their significant strides in climate change action.

Governor Inuwa Yahaya, represented by the Commissioner for Environment, Water, and Forest Resources, Mohammed Sa’idu Fawu, expressed gratitude to the Federal Government for recognizing the state’s achievements in climate change action.

He emphasised that the award would motivate his administration to intensify its efforts in environmental sustainability.

The Governor used the occasion to provide an overview of his administration’s efforts to address climate action, combat land degradation, and support livelihoods in Gombe State.

He said to address climate action, combat land degradation, and support livelihoods, his government launched the Gombe Goes Green Project (3G) in 2019 through aggressive reforestation and natural regeneration efforts.

The 3G project, he explained, set an ambitious target of planting and nurturing at least one million trees annually, providing direct employment to thousands of individuals, mainly youth, who are engaged in tree planting and nurturing.

“The pilot phase, which began in June 2019, has successfully planted over four million assorted seedlings in various parts of the state.”

In addition to the 3G Project, the Governor added, his administration is implementing a strategic policy to facilitate a gradual but sustained transition to renewable energy.

This includes the all-in-one solar-powered streetlights project, with nearly 200 kilometres of solar streetlights installed to date. Furthermore, all new government buildings, health facilities, and education institutions are now being equipped with solar power.

The administration has also prioritized flood and erosion control by rehabilitating gullies and restoring lands and communities threatened by these issues.

The impact of these interventions, according to Governor Inuwa Yahaya, has been significant.

He said that “Degraded lands across the state have been restored, effectively combating desertification, erosion, and soil nutrient decline. Biodiversity has been revived by reintroducing various indigenous tree species, with a particular focus on those facing extinction.”

Additionally, livelihoods have improved, and sustainable development has been promoted through the planting of exotic fruit-bearing trees that benefit local communities.

Adaptation to climate change has also been enhanced by planting fast-growing tree varieties.

Furthermore, societal awareness and understanding of human-induced ecological problems and their solutions have increased, along with the adoption of renewable energy technologies”.

Earlier, the President /Chairman, Board of Trustees of the Society for Planet and Prosperity, Professor Chukwumerije Okereke, explained that the project follows the successful mapping of climate impacts, policies, and action plans at the subnational level.

This evaluation, completed in collaboration with the department of climate change and the Nigeria Governors’ Forum (NGF), aims to enhance climate leadership at the state level by using standard metrics and rating criteria.

Senator Seriake Dickson Endorses Subnational Climate Governance Ranking Report

The Chairman, Senate Committee on Ecology and Climate Change, Senator Seriake Dickson, has described the Climate Governance Performance Rating and Ranking (CGPRR) of Nigeria’s 36 states project as a timely and innovative intervention.

Dickson spoke in Abuja shortly after receiving the report of the project which was launched by the Society for Planet and Prosperity (SPP) in close collaboration with the Department of Climate Change (DCC), Federal Ministry of Environment.

Senator Dickson in his endorsement remark said: “This project will encourage increased climate action at the subnational level with resounding effect on national climate actions that will help Nigeria accelerate its commitment into achieving global climate change goals.”

The former Bayelsa State Governor stated further: “We have just concluded a two-day retreat of the National Assembly Joint Committee on Ecology and Climate Change which took place from July 25 to 26, 2024, in Abuja where we discussed how further stakeholders’ collaboration can help advance climate action in the country.

“This Climate Governance Performance Rating and Ranking report will now serve as a tool for further engagements as the Joint Committee embarks on its proposed engagements with the subnational and private sector and consequently spur more actions in the areas where gaps exist in specific states,” he said.

“I have reliably gathered that this report is the first-ever Climate Governance Performance Rating and Ranking of Nigeria’s 36 states, I am delighted to endorse it as a resource and tool for the advancement of climate change actions at the subnational level especially the local governments and senatorial districts where the most vulnerable communities experiencing the direct impacts of climate change are domiciled.”

Senator Dickson commended SPP, led by foremost Professor of Environment, Global Climate Governance & Public Policy, Professor Chukwumerije Okereke, the Department of Climate Change, Federal Ministry of Environment, and the entire Ministry, for embarking on such an outstanding and unique work which will now be the evidence-base for aggregated and improved subnational climate actions.

The Subnational Climate Change Governance Performance Ranking project evaluated the extent of climate change governance and performance in Nigeria’s 36 states using five key ranking criteria namely: climate institutions and governance; climate policy and action plan; climate budget and finance; climate change projects implementation and monitoring; and climate online visibility.

After months of rigorous reviews and scrutiny, Lagos State emerged the overall best state, with Gombe and Ebonyi occupying the second and third positions respectively. The winners were announced at a high-level event chaired by the Minister of Environment, Malam Balarabe Abbas Lawal, on Thursday, July 26, 2024.

By Nnaemeka Oruh (Senior Policy Analyst, SPP) and Gboyega Olorunfemi (Project Lead, SPP)