Nigeria and other African countries may face challenges in securing capital for energy transition projects with gas as a temporary solution. While there are $151 billion in planned power generation and gas pipeline projects in Africa, only 9.07% of these projects are currently under construction.
A new report by the Natural Resources Governance Institute emphasizes the importance of proper planning and exploring renewable options based on individual country needs. The report also calls for a transparent dialogue about why gas is a viable fuel choice to achieve energy, economic, and climate goals.
With the evolving landscape of energy sources, the report suggests that countries with established gas reserves and infrastructure may find gas to be a feasible temporary solution for power generation. However, the report also stresses the need to reduce global gas consumption to meet climate goals and avoid the worst environmental outcomes.
Despite the push for gas projects in countries like Nigeria, funding for new gas infrastructure remains a challenge. The report highlights the limited availability of foreign investment for gas projects in lower- and middle-income countries, signaling a shift towards more sustainable and renewable energy options in the future.