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New US energy policy would harm Nigeria – FG
ABUJA – THE Federal Government has said the country would need to sharpen
its energy framework in the light of the new energy policy of the United
States Government under President Barack Obama.
The Special Adviser to the President on Petroleum Matters, Dr. Emmanuel
Egbogah, said this on Thursday at the Nigerian-American Roundtable,
organized by the government to discuss the trade relations in the petroleum
sector.
He stressed government’s determination to deliver on the reforms in the
power and petroleum industries and the new Gas Master Plan, since they form
the bedrock for the achievement of the National Development Plan and
government’s seven-point agenda.
Egbogah who presented a paper entitled: Impact of the new US Energy Policy
on Nigeria, said the new policy on energy economy, which is geared towards
significant reduction in America’s dependency on foreign oil and gas, was “a
rather disturbing situation considering the role petroleum plays in
Nigeria’s economy and the extent of petroleum trade relations with the
United States.”
According to him, the fact that the United States imports over 40 per cent
of Nigeria ’s crude oil, which is the main revenue provider for government,
was “single most important reason why Nigeria is very alert to any changes
to the US Energy Policy.”
He noted, however, that Nigeria was very much in support of every effort by
the Obama administration to reduce carbon dioxide emissions, especially in
the face of global warming.
He further noted that the upheavals in the global financial and energy
sectors in the past year, which resulted in meltdown and declining energy
demand globally makes the “dialogue between a significant supplier and a
significant consumer apt.”
He said, “Although recessions are not new, never before have we had a crisis
hitting all three most important global markets – economic, financial and
oil – at the same time, worldwide.
The synchronized impact of crisis in these markets resulted in sharp
contraction in aggregate output and employment especially in developed
nations.”
Egbogah, therefore, called for continual engagement and dialogue towards
deepening understanding and sharpening both nations’ energy frameworks.
Also speaking at the event, the Group Managing Director of the Nigerian
National Petroleum Commission, Dr. Mohammed Barkindo, said a significant
policy shift on energy by the Obama administration would have significant
consequences on already established trading relations between the US and
Nigeria.
According to him, the meeting was initiated to hear first-hand what is the
substance and content of the renewable energy and climate change initiatives
of the US administration.
He explained that the key actors in the industry are to discuss with the
United States experts on the possible consequences of the policy on the
Nigerian economy.
“They are also to explore policy options on how to minimize the negative
impacts that the US policy would have on Nigeria. Nigeria would continue to
rely on the proceeds from the export of oil and gas for a very long time
despite efforts at diversification of the economy.
Barkindo added that the oil and gas reform agenda in Nigeria would face
challenges internationally and domestically but said Nigeria and the United
States remain committed to the growth and development of the sector in the
country.
The NNPC GMD said government was also aware of the strong resistance in the
country by a cartel in the oil and gas sector which has a vested interest in
the status quo, adding that the cartel with its collaborators would fiercely
resist the reforms.
He said, “The NNPC would do everything to march on with the reform because
we have no option. We challenge critics and the cartel to come up with a
superior option to the reform agenda. We would count on the US to support
Nigeria in the reforms.”
