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Saturday, November 27, 2021

The economy of Nigeria, other countries at risk as world transits to renewable energy ~W/Bank

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The World Bank has said that the shift from oil, gas and coal to renewable energy could impact Nigeria and some countries in the coming years.

The bank said; “Countries with a high share of carbon and carbon-linked wealth are highly exposed to carbon risk and need to avoid policies and investments that might elevate their exposure.

“As the world decarbonises, the shift away from oil, gas, and coal will pose risk to the value of the wealth of countries that are already abundant in nonrenewable energy (for example, Nigeria and Angola), but also that of countries with recent oil and gas discoveries (Mozambique, Kenya, and Senegal).

“The risk of stranded assets in these countries highlights the need to accelerate the reduction of their wealth exposure to carbon risk,” the bank said in its latest report.

READ ALSO: Nigeria projects economy to grow at 4.2% as it plans to spend record budget in 2022

However, Nigeria has said that it will reject a single pathway to global energy transition.

Minister of State for Petroleum Resources, Timipre Sylva, who said this at the Seplat Energy Summit 2021, acknowledged Nigeria’s commitments to net-zero target in terms of the use of hydrocarbons, but stressed that there was no gainsaying the fact that Nigeria required fossil fuel as its base-load energy source.

“This is undoubtedly a major concern for climate activists in developed nations, but the clamour to emphasis only renewable energy as the sole pathway to energy transition is a source of concern for African countries,” Sylva stated.

He said African countries were still working to achieve base-load industrialisation, address energy poverty and ensure reliable power supply.

“This is why in Nigeria, we reject the concept of a single pathway to the energy transition,” the minister declared.

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