The Managing Director of ANOH Gas Processing Company Limited, Engr. Effiong Okon, has once again reiterated Africa’s dilemma in the utilization of natural gas, even though the continent boasts of about 8% of the world’s gas reserve.
Okon who stated this recently at the Gas Investment Forum 2024 held in Lagos, insisted that Africa still remained the most energy poor continent.
He said that without urgent reforms, it would be difficult to solve the energy crisis in Africa, adding that while countries like China and India had transformed their energy landscapes, Africa had remained stagnant in its power generation and distribution.
He highlighted the untapped potential of natural gas, especially in Nigeria, which sat on approximately 209 trillion cubic feet of gas, the largest reserve in Africa. However, only 5% of its power potential is being harnessed, and 60% of Nigerians now have access to electricity.
According to him, energy poverty is even worse in rural areas, where only 26% of households have access to reliable power.
He further said that Nigeria’s current operational power capacity stood at just 6 gigawatts, far below the needs of its population of over 200 million, stressing that many Nigerians still depended on generators for electricity, further contributing to the high cost and inefficiency of the power sector.
Despite these challenges, Okon said that gas was seen as a key element in transitioning away from coal and oil, both of which have higher greenhouse gas emissions. The use of natural gas could reduce emissions considerably, offering a significant opportunity for cleaner energy in Africa.
Okon noted that despite these challenges, Nigeria had embarked on several large-scale projects aimed at boosting its energy capacity. One of such projects is the ongoing construction of the Obiafu-Obrikom-Oben (OB3) gas pipeline, a key infrastructure that will link Nigeria’s eastern and western gas networks. Once completed, it is expected to significantly improve gas supply across the country.
He said that Seplat had also made bold investments in gas infrastructure development by committing $1 billion investment to building two gas processing plants, (ANOH and Sapele) which will deliver close to 2 gigawatts of power to the Nigerian economy. This will contribute nearly 50% of the country’s current power generation capacity.
Looking ahead, Engr. Effiong Okon said, despite the slow progress, there is optimism about the future of Africa’s energy sector. The focus is now on moving from a “victim mindset” to a “player mindset,” where African countries actively engage in harnessing their energy resources to drive economic prosperity. As Africa pushes forward, natural gas is expected to play a central role in reducing energy poverty and supporting industrial growth.
