Empowering Energy: Boosting Electricity Access Paves the Way for Increased Investment

Seplat Energy’s Director of External Affairs and Social Performance, Chioma Afe, has expressed concerns regarding the detrimental effects of Nigeria’s high diesel imports on the country’s foreign exchange reserves. In 2020 and 2021, Nigeria spent $5.26 billion on importing various electrical machinery and equipment, including electric generating sets, transformers, vacuum cleaners, and hair clippers, as reported by the International Trade Centre.

Central Bank of Nigeria data indicates a decline in the country’s foreign exchange reserves to $33.23 billion at the end of the third quarter of 2023, marking a year-on-year decrease of $5.01 billion compared to the $38.25 billion recorded in September 2022.

Addressing this issue in a communication to InfoStride News, Afe emphasized the critical role of increased access to electricity in driving Nigeria’s economic development. She noted that reliable and affordable power is crucial for attracting investments across various sectors, ranging from technology to manufacturing.

Afe stated, “It will also displace the imported diesel generators that are currently choking our homes and cities, and a major drain on the country’s foreign exchange through the imported fuel on which they run.”

Expanding on the matter, the Seplat director highlighted that the challenge extends beyond fossil fuels, citing the rise in solar panel thefts, which further compounds economic and environmental issues in the country.

Moreover, Afe emphasized the need to encourage Nigerians to adopt cleaner cooking energy sources, such as LPG or electricity, to reduce air pollution, prevent health problems, and minimize deforestation and biodiversity loss.

Seplat’s business philosophy is deeply rooted in fostering strong partnerships with host and impacted communities, according to Afe. She explained, “From inception, we developed a robust community relations model that has guaranteed our freedom to operate and recognizes our host and impacted communities as equal stakeholders in their economic and social development.”

Reflecting on past perceptions of international oil companies in the Niger Delta, Afe acknowledged a historical view that these companies focused on extracting as much value from national resources as possible, without adequately contributing to local communities. This perception, whether accurate or not, has contributed to a challenging operating environment, marked by theft, vandalism, and sabotage, with estimates suggesting a significant portion of production being siphoned off.

In conclusion, Afe stressed the importance of sustainable energy practices, not only for economic development but also for the well-being of communities and the environment. The shift towards cleaner energy sources, coupled with community engagement and support, can contribute to a more resilient and sustainable energy landscape in Nigeria.