World Bank Withdraws Funding for Fossil Fuel Projects

Mr. Larry Attah, managing director of the Nigerian Liquefied Natural Gas (NLNG) Limited, has disclosed that the World Bank has hinted of plans to withdraw funding for all forms of fossil fuel projects.

Attah disclosed this while speaking at the Nigerian Gas Association (NGA) 12th International Conference and Awards, held virtually last week, with the theme, “Powering Forward: Enabling Nigeria’s Industrialization via Gas”.

His disclosure may have further confirmed industry projections that fossil fuel may become less relevant over the next few years to come.

A leading European NGO-Urgewald last October, called out the World Bank for its continued investment in fossil fuels despite ongoing pledges to tackle climate change.

The NLNG boss explained that attention in the global energy landscape has shifted to the use of cleaner energy, mainly propelled by renewable.

Attah said energy transition has arrived but unfortunately, Nigeria is still dependent on oil, saying NLNG has been on the gas story for a long time taking the debate further because of the absolute conviction that the country has more gas than oil. He said “our biggest opportunity as a nation is the abundance of gas, adding that on a per barrel of equivalent basis, Nigeria has more gas than oil.

‘‘Weather you choose to change or not or to accelerate gas, the world is not waiting for us as Nigeria or Africans. The world is moving on. There are a lot of conversations around solar, wind and hydro. But more importantly, there is a new kid on the block and that is hydrogen”.

He noted that Africa is sometimes referred to as the Dark Continent with more than half of it without access to energy, adding that Nigeria is even seen as not on good standing on issues of electricity.

In November last year, the United Kingdom placed a ban on all petrol cars and diesel-powered vans.

Europe has been Nigeria’s main crude oil market with member-countries importing more than 800,000 b/d of crude oil and condensate, accounting for 41 per cent of the country’s export.

According to the United Nations COMTRADE database on international trade, Nigeria’s exports of crude oil to United Kingdom were $2.23 billion in 2018. With the ban, the figure is certainly set to take a turn for a drastic drop.

The ban, according to British Prime Minister, Boris Johnson, takes effect from 2030 and is a part of a green revolution to tackle climate change and create jobs.