Distinguished Fellows of NAEE, eminent personalities in the house, distinguished ladies and gentlemen.  It is my honour and privilege to stand before you to receive this Fellowship Award and I thank the Distinguished Fellows in the Council of NAEE who considered me worthy to be conferred with one of its highest awards of Distinguished Fellowship.  I was indeed, elected to the Fellowship of the Institute of Petroleum, London, on 23rd January, 1973, and also became a Member of International Association of Energy Economics, NAEE on September 15, 1998.

What the NAEE has done to confer this Fellowship on me tonight is a great honour and privilege that carries responsibility.  In appreciation of this, I will be submitting a proposal tonight.

Nigeria needs Academy of Energy Economics

The Nigerian Academy of Engineering established in 1977 plays a pivotal role in shaping decisions on infrastructure in our country.  The Nigerian Academy of Science does it for science, but there is no equivalent for Energy Economics – the discipline that ordinarily should appraise the decision making of about $50 billion a year energy investments and expenditures.

• Nigeria Energy Sector contributes about 90% of foreign earnings and 50% of government revenue, yet critical policy decisions are made without a standing, independent peer recognized body of energy economists.
• Although Oil and Gas in recent times could be having a reduced share of GDP however, I will say that Nigerian economy is all about Energy and Energy is Nigerian economy!  In a popular parlance, when energy industry sneezes, Nigerian economy tends to catch cold.  We have seen this phenomenon several times with various energy issues having drastic impact on the Nigerian economy over the years.  

• Subsidy removal at the onset of this present Administration caused a fiscal shock but there was no independent and coherent ex-ante economic analysis in the public domain.   

There is no gainsaying that Nigerian Energy sector now faces the most critical energy economic decisions since the 70s with issues such as:

• Fuel subsidy removal (quo vadis!)
• Decade of Gas Commercialization
• PIA Implementation
• Energy Transition Financing

Yet we lack a single independent peer-recognized body of energy economists to provide a non-partisan analysis to the nation.

These energy decisions are too big to leave to politicians, the IOCs and government economists alone.  Therefore, Nigerian Academy of Economics will provide Nigeria with an independent, non-partisan, fair elected body of individuals with contributions to Nigeria petroleum and energy economy for the purpose of Nigeria economic development and excellence.  

In a number of public events, I have had the opportunity to witness the engagements of eminent Nigerians, who are distinguished scholars, finance experts and major industry players.   I am talking of distinguished scholars like Prof. Wumi Iledare, Prof. Akin Iwayemi, Prof. Adeola Adenikinju, Dr David Ige, Alhaji Yusuf Ali, Prof. Uwaifo of UNIBEN, Prof. Benedict Oramah, the erstwhile President of AFREXIM, and former GMDs of NNPC, NERC, NUPRC and CBN.  On my list are a host of others such as erudite scholar, Prof. Yinka Omoregbe, Mr. Austin Avuru, a distinguished industry player and co-founder of Seplat, the cerebral Nigerian entrepreneur and distinguished Africa’s empowerment ICON, Tony Elumelu, former GMD of NNPC, Engr. Funsho Kupolokun, former CBN Deputy Governor – Research, former NERC Chairman, ex-NLNG MD, ex-AfDB Nigeria Country Economist as well as energy and finance experts in the diaspora.   

I hereby submit my humble proposal to you for the formation of Academy of Energy Economics which should be given serious consideration by the distinghuished Fellows of this Association.   I will expect the Academy to:

• Provide confidential, evidence-based economic analysis to the Presidency, NASS, NUPRC, NNPCL, CBN and FMF on request.  
• Host Chatham House dialogues between government, industry, and finance on critical energy and economic issues.   
• Publish annual “State of Energy Economics in Nigeria” as well as rapid policy notes within 48hrs of major announcements.   
• Recognize lifetime achievements in energy economics through election to fellowships.
• Define professional and ethical standards for energy economic analysis in Nigeria

My dear Energy Fellows, the Energy Economists in this country have seen how politics have changed the narratives on petroleum and energy policies with pervasive effects on economic and social lives of our people. In my humble opinion, we should be able to change the narratives first by establishing the Academy of Energy Economics, which I am proposing tonight for your due consideration.  Secondly, working diligently through the various organs of the Academy to ensure that the Academy becomes an important and credible voice in advocacy to be sought after by the Authorities when energy policy decisions are being considered. If this proposal goes down well with you, you may therefore wish to take decision to go ahead with its implementation. I pledge my full support for the actualization of this proposal.

Once again, I thank you for the honour of this FELLOWSHIP and may NAEE continue to grow from strength to strength.

 Dr Diran Fawibe