The country’s transition to renewable energy is a necessary but challenging endeavour. Nigeria’s economy is heavily reliant on oil and gas exports, which account for about 90% of its export earnings and 60% of government revenue. Oil and gas also play a major role in the Nigerian energy supply. However, the country faces significant energy challenges, including inadequate power generation and widespread energy poverty. Rapid population growth exacerbates these issues, increasing energy demand and putting further pressure on the existing infrastructure and the environment.
Nigeria has committed to achieving net-zero carbon emissions by 2060 but faces significant obstacles in fulfilling these commitments. Natural gas plays a vital role in Nigeria’s Energy Transition Plan, serving as a key transition fuel. It is regarded as a relatively cleaner energy source due to its low-carbon characteristics and cost-effectiveness compared to other fossil fuels like coal and oil. Consequently, natural gas will continue to be the primary power source in the short term, even as the country gradually shifts towards renewable energy sources.
Given the country's need to balance energy access, economic development, and climate goals, regional and international cooperation agreements are essential to support Nigeria's energy transition. Cross-border joint projects on renewable energy sources like solar, wind, and hydroelectric power offer mutual benefits. Countries have the opportunity to collaborate by sharing technical expertise, financial resources, and market access while benefiting from capital de-risking and economies of scale. Harmonizing energy policies, standards, and regulatory frameworks can further facilitate cross-border investments and energy trade. This includes setting common standards for renewable energy, energy efficiency, and emissions reduction.
Especially international technical cooperation could be leveraged to offer support in the formulation of policies and frameworks promoting the energy transition and decarbonization agenda in Nigeria. Furthermore, regional and international collaboration on research and development (R&D) might accelerate the adoption and scale-up of new clean technologies.
Addressing the social and economic impacts of the transition, particularly for workers in traditional energy sectors, through re-skilling and retraining programs for job transition into new, clean, and sustainable energy sectors, is also vital. Ensuring that energy transition plans consider the needs of vulnerable populations, including rural communities, is crucial for multi-stakeholder buy-in and support in Nigeria.
While international cooperation and effective policies are crucial, the country must also address significant obstacles, including corruption, inadequate infrastructure, and financial constraints. Reducing reliance on fossil fuels will require substantial investment and political will, and the success of this transition is far from guaranteed. Nonetheless, it remains a critical step towards a more sustainable and resilient energy future.
