Press Release

Workshop in Abuja, Nigeria, opens June 9

15/2008 May 30, Vienna Austria
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The OPEC Fund for International Development (OFID) is organizing a workshop on Energy Poverty in Africa scheduled to hold June 9-10 in Abuja, the capital of the Federal Republic of Nigeria. The workshop is to be opened by Nigerian President, HE Alhaji Umaru Musa Yar’Adua (GCFR). A number of African ministers are expected to be present.

OFID Director-General, Mr. Suleiman Jasir Al-Herbish, will lead the OFID delegation to the workshop. The delegation includes Messrs Said Aissi, Assistant Director-General, Department of Public and Private Sector Operations; Ibrahim Alturki, Director, Africa Region; Rachid Bencherif, Senior Planning Analyst; Sam Ifeagwu, Senior Officer, Information; Solomon Amieyeofori, Senior Operations Officer; and Ms. Eman Alshammari, Operations Officer.

Africa has economies seriously hampered by an energy sector that is not highly efficient. Lack of energy services (or poor access to energy) is a primary factor against the continent achieving higher potentials. And measures to overcome the problem have engaged the attention of governments and international lending agencies and a slew of other stakeholders over the years. The Abuja workshop is an effort to deepen discussions on the issue, with a view to finding appropriate answers.

Sub-Sahara Africa, in particular, depends largely on inefficient traditional biomass used mainly for cooking and for heating water in households. Local biomass accounts for over 80% of primary energy demand. These sources of energy (e.g. fire wood, charcoal and dry grass) burn inefficiently, giving rise to energy loss and environmental degradation. Pollutants (carbon monoxide, benzene, nitrogen oxides, etc., which are health-damaging) are emitted when these forms of energy sources are used indoors.

Related studies by the World Bank also indicate that difficulties with electricity supply equally constitute a major impediment to economic and social development across Africa. Supply interruptions plague industry users and repel investors. Health and education initiatives rise and fall, as well, on the availability of current to light classrooms or refrigerate medication. At present, only 26 percent of Africans have access to electricity. Indeed, in some countries, the figure is as low as 5%. A most common light source is kerosene lanterns, which experts say consume 10-30 percent of household expenses south of the Sahara.

OFID is expecting at the Abuja workshop the participation of the following institutions and corporations: The World Bank; the International Monetary Fund; the African Development Bank; the Arab Bank for Economic Development in Africa; Chevron Corporation; the International Energy Forum; the Islamic Development Bank; the Organisation of Arab Petroleum Exporting Countries; the Power Holding Company of Nigeria Plc., the Saudi Fund for Development; Schlumberger Ltd., the United Nations Industrial Development Organisation (UNIDO); the United Nations Environment Programme; the West African Power Pool; the World Energy Council; the World Economic Forum; OPEC Secretariat; the UK Department for International Development and Japan International Co-operation Agency.

It will be recalled that in Saudi Arabia, in November last year, OPEC Sovereigns and Heads of State and Government met in a Third Summit and issued a Riyadh Declaration which, among others issues, “recognized that energy was essential for poverty eradication and sustainable development.” The Declaration pledged that Member Countries “would continue to align the programmes of [their] aid institutions, including those of OFID with the objective of achieving sustainable development and the eradication of energy poverty in the developing countries, and study ways and means of enhancing this endeavour, in association with the energy industry and other financial institutions.” The Abuja workshop is in keeping with the spirit of the Riyadh Declaration.