NJ Ayuk, Executive Chairman and President of the African Energy Chamber has said in the face of western pressures, Africa has the singular mandate to chart the financing of its energy future. He has defended the exploitation of fossil resources, criticised pressure from Western countries, andevokeds the priorities of African producers.
As a leading authority in the African energy sector and a strong advocate for African entrepreneurship and the indigenous energy sector, NJ Ayuk is recognised as one of the foremost figures in African business today.
Centurion Law Group’s Founder and CEO NJ Ayuk has been saying for years that Africa’s oil and gas resources can fuel socioeconomic revitalization throughout the continent. He has written books; “Billions at Play: The Future of African Energy” that explains how it can be done.
The Cameroonian-born is a well-known dealmaker in the petroleum and power sectors and founder of a leading energy focused law firm, NJ is dedicating his career to helping African entrepreneurs.
Autonomy
Speaking to Jeune Afrique recently, NJ Ayuk said Africa has the sovereign right to define its own energy policy, whether fossil fuels or clean energy, without interference from the West.
“It is essential that African nations determine their energy strategy according to their own economic and societal needs,” NJ Ayuk, the petroleum dealmaker said. “This approach makes it possible to find solutions that reconcile energy security, economic growth and environmental sustainability in a way that is in line with the interests and aspirations of the African continent.”
From Johannesburg, NJ Ayuk, the former head of the South African law firm Centurion Law Group, has high hopes for the exploitation of oil and gas fields on the continent. In his capacity as President of the African Energy Chamber (AEC), the Cameroonian oil lobbyist is indeed at the initiative of several unmissable meetings of the African oil industry. From African Energy Week (Cape Town) to Invest in African Energy Forum (Paris), NJ Ayuk brings together African policymakers, public and private sector bosses and international investors to unlock pending projects and revive investment.
Author of two books on Africa’s black gold – Billions at Play, the future of energy and business in Africa and A Just Transition: Abolishing Energy Poverty through an Energy Mix – NJ Ayuk called on African decision-makers to reject anti-fossil fuel policies at the end of COP28.
“The gas that Nigeria is flaring can power at least 50 – 60% of the continent. Cameroon, Ghana, Congo, Gabon, Equatorial Guinea, all have gas that has been flared. We need to use our natural resources to power Africa. When you power Africa, you create jobs, you create factories, you create industries. You start seeing economic growth and empowerment and then you start having infrastructural development” NJ Ayuk.
At a time when hydrocarbons no longer have much of a good press, the Cameroonian legal luminary, for whom “Africa must firmly keep its promise to use oil and gas to improve the lot of its population”, evokes, in his interview with Jeune Afrique, the hot issues of the sector.
Quizzed if African producers can turn the tide as investment in the oil sector is down sharply, NJ Ayuk says Africa can explore and exploit new financing strategies.
Way out
“To overcome the shortage of international investment in fossil fuels and diversify their sources of financing, they can use different strategies: bilateral agreements, regional partnerships, or collaboration with private investors,” NJ Ayuk said.
He indicated that public-private partnerships can be a way out, given that it offers a collaborative approach, where governments and private companies share risks and responsibilities.
“Another option is to encourage domestic investment in order to create favourable conditions for the participation of local businesses and stimulate economic growth,” he said.
The President of the Africa Energy Chamber added that: “In addition, institutions such as the African Development Bank (AfDB) and Afreximbank play an important role in financing large-scale oil and gas projects in Africa. The African Petroleum Producers Organization (APPO), along with Afreximbank, is behind the creation of the African Energy Bank, which aims to find alternative financing solutions to carry out these projects. Africa is capable of financing its future, and this initiative proves it.”
To NJ Ayuk, it is essential to invest oil revenues in sectors such as infrastructure, education or health.
Asked if the African Energy Bank due to be launched in 2024 can be a “game changer”, NJ Ayuk responded in the affirmative.
His words: “The establishment of this institution specializing in the financing of African energy projects aims to reduce the dependence of African nations on foreign sources and enable them to take advantage of their abundant oil resources.
“This bank could play a crucial role in mobilizing resources, attracting investment and providing tailored financial solutions that meet the specific needs of Africa’s energy sector. Its designers wanted to emphasize the importance of self-sufficiency and, also, the importance of meeting the challenges posed by the lack of international investment. The ACS supports this initiative, which will enable Africans to boost the development of their oil and gas sector, thereby stimulating growth and job creation as well as improving energy infrastructure.”
Africa can!
He counsels that a self-sufficient and prosperous Africa must combine the use of hydrocarbons with investments in renewable energy.
On how Africa’s future producers can get the most out of their oil and gas projects, and ward off the ‘curse of black gold’”, NJ Ayuk preached the gospel of transparency, accountability and good governance.
“First, transparent and accountable governance is essential. It requires strong regulatory frameworks and anti-corruption measures to ensure that oil and gas revenues help irrigate the economy as a whole,” NJ Ayuk said. “It is also essential to diversify the economy beyond the energy sector, investing oil revenues in other sectors, such as infrastructure, education or health, in order to create a more resilient and balanced economy.”
The President of the African Energy Chamber said prioritising the development of local content and encouraging the participation of local companies in the oil and gas value chain will also go a long way to promote job creation, skills development and technology transfer – with the aim of making economic growth more inclusive.
NJ Ayuk cautioned African states to reject the promises of energy transition aid made to them on the sidelines of COP28 at the expense of their oil and gas projects.
“Africa should change its perspective, not depend on foreign aid and manage its own oil and gas resources to finance its economic future,” he said. “History has shown that foreign aid, no matter how well-intentioned, often has unintended consequences, such as increased poverty and systemic corruption.”
NJ Ayuk’s made his position is clear: “Rather than succumbing to external pressures, African states should exploit their oil and gas resources to boost growth, create opportunities (jobs, income) and reduce energy poverty. This approach, which combines the use of hydrocarbons with investments in renewable energy, is in line with the ACS’s vision of a self-sufficient and prosperous Africa.”
