Introduction
On September 3, 2024, a high-level dialogue convened in Uyo, Akwa Ibom State, to address the critical issue of fiscal resilience and energy transition. The event, hosted by Policy Alert, with support from the Natural Resource Governance Institute (NRGI) brought together experts, policymakers, and civil society representatives to discuss the challenges and opportunities facing the state.
Key Takeaways
Fiscal Vulnerability: The state’s overreliance on oil revenue has exposed it to significant fiscal risks, especially in light of the global energy transition.
Need for Diversification: The urgent need for diversifying the economy and exploring alternative revenue sources was emphasized.
Energy Transition Opportunities: The state’s abundant renewable energy resources, such as solar and wind, offer significant potential for sustainable energy development.
Capacity Building and Policy Reform: Strengthening the capacity of policymakers and investing in skill development are essential for a successful energy transition.
Community Engagement and Social Justice: Addressing the socio-ecological impacts of oil extraction and ensuring community participation in decision-making processes are vital.
Recommendations
The dialogue participants reached a consensus on the following recommendations:
Establish an Energy Transition Research Institute: To explore and implement effective strategies for energy transition and economic diversification, which could involve conducting research and developing strategies for a just and equitable energy transition.
Enhance Social Inclusion and Education: To empower communities and raise awareness about energy transition issues, addressing fundamental social issues, and promote community engagement.
Skill Development and Policy Frameworks: To build the capacity of policymakers and promote innovative solutions, focusing on skill reorientation for key decision-makers, trigger fiscal policies, and align state laws with the energy transition framework.
Set Up a Mineral Resources and Environmental Committee (MIREMCO): Train state personnel to better engage with federal mining authorities to increase revenue from solid minerals deposits in the state, thereby improving the state’s capacity to manage mineral resources.
Promote Climate Finance and Policy Involvement: To access climate finance and integrate energy transition into state policies by involving commissioners in policy discussions, and enhance public awareness and education at the grassroots level.
Update Policy Frameworks: To align state policies and budgets with the principles of energy transition by integrating energy transition strategies into the 2025 state budget and develop a comprehensive energy transition plan.
Conclusion
The dialogue underscored the importance of proactive measures to ensure Akwa Ibom State’s fiscal resilience and sustainable development. By implementing the recommendations outlined in this communiqué, the state can seize the opportunities presented by the energy transition and build a prosperous future for its people.
