Exploit oil before it’s worthless, ex-minister tells govt

A former Minister of State for Mines and Steel Development, Dr. Uche Ogah, has urged Nigeria to maximise the value of its oil and gas resources before global energy transition renders fossil fuels less valuable.

Speaking at an energy summit held recently in Lagos, Ogah said the country must urgently translate its ongoing energy reforms into tangible results to justify the efforts of successive governments.

The conference, themed ‘Nigeria’s Energy Future: Exploring Opportunities and Addressing Risks for Sustainable Growth’, brought together top government officials, oil majors, energy experts, and industry journalists.

Ogah, who is the President of Masters Energy Group, noted that oil and gas remain the backbone of Nigeria’s economy, accounting for about 70 per cent of export earnings and supporting millions of jobs. He, however, warned that the global shift towards cleaner energy sources posed a serious risk to the nation’s economic stability if not properly managed.

He said, “We must act decisively to capture the full value of our hydrocarbon endowment before it declines. The Petroleum Industry Act gives us a roadmap to do this, but it will remain on paper without coordinated policy enforcement, robust financing, and security of production.”

According to him, Nigeria faces a dual imperative: to deliver results from its oil and gas reforms while simultaneously building a diversified clean energy future.

“The energy transition is not a distant possibility; it is already reshaping global markets. For Nigeria, this is both a challenge and the greatest economic opportunity of the 21st century,” he said.

Ogah emphasised that gas must serve as the country’s “strategic bridge fuel”, adding that the resource holds immense potential for industrial power generation, clean cooking, and export expansion.

“Gas commercialisation, turning abundant associated gas into LNG for export and CNG for clean cooking, offers immediate value creation. Projects like the Utorogu Gas Processing Facility show how flare gas can be converted into marketable products, reducing emissions and adding billions to GDP,” he stated.

On renewable energy, Ogah said Nigeria’s solar and wind resources, coupled with its youthful and technologically inclined population, position the nation to become a renewable energy powerhouse.

“The Federal Government’s Energy Transition Plan envisions 30 per cent renewable capacity by 2030, a target we can exceed with decisive action,” he said.

However, he warned that without timely investment and local capacity development, Nigeria risked becoming a dumping ground for imported renewable technologies rather than a producer.

“If we fail to take timely action, we will only end up importing technologies instead of creating the jobs, investment, and industrial diversification that a homegrown green economy can deliver,” Ogah added.

He identified key challenges slowing the sector’s progress, including policy inconsistency, underinvestment, infrastructure decay, insecurity, and a shortage of skilled manpower.