The Director of External Affairs and Social Performance at Seplat Energy, Chioma Afe, has stated that increasing access to electricity is critical for driving the development of the Nigerian economy.
According to The Punch, she expressed concerns regarding the negative effect that the nation’s high diesel imports are having on its foreign exchange reserves.
Data from the International Trade Centre shows that in 2020 and 2021, Nigeria imported $5.26 billion worth of electrical machinery and equipment, including hair clippers, hoover cleaners, electric transformers, and electric generating sets.
According to data from the Central Bank of Nigeria, at the end of the third quarter of 2023, Nigeria’s foreign exchange reserves had dropped to $33.23 billion. This is a $5.01 billion year-over-year decline from the $38.25 billion reported in September 2022.
According to Afe, access to cheap and dependable power is a necessary prerequisite for investment in a variety of industries, including manufacturing and technology.
Additionally, because it will no longer require the imported diesel generators that are currently choking our cities and homes, it will significantly reduce the nation’s foreign exchange reserves because these generators run on imported fuel.
In an effort to provide more context, the Seplat director explained, “This issue extends beyond fossil fuels, as evidenced by the increasing prevalence of solar panel thefts, which exacerbates the nation’s already severe environmental and economic problems.
“Furthermore, as biomass is a major cause of air pollution, preventable health issues, needless deaths, deforestation, and biodiversity loss, we need to encourage more Nigerians to cook with cleaner energy instead of biomass.”
According to her, switching to LPG or, if feasible, electricity will reduce pollution, enhance health, and most importantly, release rural women from the labor-intensive task of gathering firewood, allowing them to earn valuable income and spend more time with their families.
She claimed that a strong commitment to partnerships with its host and impacted communities is at the heart of Seplat’s business.
“From the beginning, we created a strong model for community relations that has protected our autonomy and acknowledged our host and affected communities as equal partners in their social and economic advancement,” the speaker stated.
Afe noted that as a child growing up in the 1990s, she thought that the foreign oil companies that worked in the Niger Delta were only interested in keeping as much of the value of our country’s resources for themselves as possible, giving back less to the communities where they operated than was reasonable.
“This perception, whether accurate or not, is one of the main factors contributing to the extremely challenging operating environment. Up to 25% of output may be siphoned, according to estimates of the prevalence of theft, vandalism, and sabotage.”
