As the world accelerates its shift towards cleaner energy, economists and energy experts have warned that Nigeria risks being left behind if it fails to swiftly monetise its vast oil and gas reserves.
Speaking at the 18th Annual International Conference of the Nigerian Association for Energy Economics (NAEE) and the International Association for Energy Economics (IAEE) in Abuja, former Nigerian Economic Society president, Prof. Adeola Adenikinju, stressed the urgency for Nigeria to extract value from its hydrocarbons before global demand peaks.
According to him, despite being one of Africa’s largest oil producers, Nigeria continues to grapple with severe energy poverty, with over 87 million citizens lacking access to electricity. He described the country’s dependence on imported refined petroleum products as “an unacceptable paradox” for a nation so rich in energy resources.
Adenikinju noted that the global energy market has become increasingly volatile, shaped by geopolitical conflicts, the rise of artificial intelligence, and a renewed scramble for energy security following the Russia-Ukraine war. These factors, he said, are forcing countries to rethink their energy strategies.
“The world is moving toward a low-carbon future, and if we delay, our hydrocarbons could become stranded assets,” he warned. “Nigeria must aggressively exploit its oil and gas reserves while simultaneously investing in renewable energy sources like solar, hydro, and wind.”
The economist urged policymakers to ensure energy transition policies are inclusive and protect vulnerable groups, noting that market forces alone would not guarantee fairness. He also called for expanded access to domestic gas and accelerated deployment of affordable solar energy across rural communities.
Adenikinju further highlighted the global shift in power dynamics within the energy sector, citing China’s dominance in solar manufacturing and critical mineral processing. He argued that this growing rivalry between the U.S. and China is reshaping global energy supply chains and creating new challenges for developing countries.
He also pointed to the risks of capital flight and high financing costs that could hinder large-scale energy investments in Africa, urging the Nigerian government to strengthen investor confidence and infrastructure to attract green capital.
The Secretary-General of the African Petroleum Producers Association, Omar Faruk, supported this view, stating that even the International Energy Agency has acknowledged that fossil fuels will remain relevant for decades. He argued that Africa must balance the need for cleaner energy with its developmental priorities.
Faruk emphasised that Africa must build local capacity for energy production and processing—both in fossil fuels and renewables—to avoid perpetual dependence on foreign technology and imports.
Similarly, the President of the IAEE, Prof. Edmund Lewis, and NAEE representative Prof. Wunmi Iledare, commended Nigeria’s efforts in fostering policy dialogue and academic engagement in the energy sector. They, however, urged African countries to chart a pragmatic energy transition that reflects their unique realities rather than replicating Europe’s model.
“Nigeria’s energy future must be built on pragmatic prosperity, not imitation,” Iledare said, adding that developing nations must balance access, growth, and climate responsibility in their policy choices.
Experts at the event agreed that with the right mix of reforms, investment incentives, and regional collaboration, Nigeria can position itself as a credible player in the evolving global energy order while securing its economic future.
Experts Urge Nigeria to Fast-Track Oil, Gas Monetisation Before Global Demand Declines
