FG mulls host community trust fund to achieve energy stability, stem Niger Delta volatility

The federal government says addressing the underlying socio-economic causes of insecurity, such as poverty and unemployment, is crucial to achieving lasting stability in the energy sector.
Heineken Lokpobiri, minister of state petroleum resources (oil), said this at the Oloibiri Lecture Series and Energy Forum 2024 (OLEF), which the Society of Petroleum Engineers (SPE) organised on Thursday in Abuja.
“This can be addressed through implementation of the host community trust fund, gas infrastructure fund and other intervention mechanisms,” he said.
The OLEF, which commenced in 1991, is focused on contributing to Nigeria’s oil and gas industry policy development in commemoration of Shell D’Arcy’s first commercial oil discovery in Nigeria in 1956 at Oloibiri, Bayelsa.
Mr Lokpobiri said over the years, insecurity had posed one of the most pressing challenges to stability in the Nigerian energy sector. He said cases of pipeline vandalism, oil theft, and sabotage had significantly threatened the sustenance of the country’s energy infrastructure and smooth operations.
The minister said concerted efforts were being made to address the security threats in the sector, with the awarding of a surveillance contract to Tantita Security Service Nigeria Limited.
He said this had culminated in a substantial increase in oil production.
He said the government would continue to explore better ways of resolving some of the sector’s bottlenecks, especially through the use of modern technology.
“Government is open to harness all possible advancement pathways by implementing policies and promoting partnerships that will transform the current energy system to a low-carbon energy system, with hydro, solar and natural gas playing important roles.
“Nigeria is working towards achieving its Energy Transition Plan goals, which involves significant emission reductions across key areas like power, cooking, oil and gas, transport and industry with an ultimate target for carbon neutrality by 2060,’’ he said.
According to the minister, infrastructure, transportation, and security are fundamental to the efficient functioning of the energy sector and its interdependence to ensure stability and sustainability.
He said that following the strong commitment made by President Bola Tinubu at the recent COP 28, the government was taking an ongoing, robust approach to revamping the energy sector.
The oil minister said this was not only being implemented domestically but was also being extended to international communities through friendly competition for energy supply in the international market.
(NAN)
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