The Nigeria Extractive Industries Transparency Initiative (NEITI) has issued a warning that the global push for a transition to cleaner energy could significantly impact Nigeria’s economy, particularly the revenue generated from the petroleum industry.
NEITI has called on the government to accelerate ongoing reforms in the extractive sector and push for greater economic diversification.
Speaking at a workshop in Abuja focused on assessing the long-term effects of energy transition on Nigeria’s economy, NEITI Executive Secretary, Orji Ogbonnaya Orji, highlighted that revenue from oil and gas had already dropped by 15% between 2022 and 2023. He stressed that the shift towards cleaner energy would likely intensify the pressure on government revenues.
Orji noted, “The world is moving rapidly towards clean energy, and while this transition presents opportunities, it also poses significant risks to resource-dependent economies like ours. As an oil-dependent nation, Nigeria must act swiftly to manage these risks while positioning itself to seize the opportunities that arise.” He further emphasized that the transition from fossil fuels to renewable energy sources requires ongoing reforms in the extractive industries, a core aspect of NEITI’s work.
The Alternate Chair of the NEITI National Stakeholders Working Group (Board), Adoli Mathew remarked that the transition to cleaner energy is no longer a distant concept but a present reality influencing global policies, markets, and investment decisions. For Nigeria, an oil-dependent economy, this shift brings both profound challenges and potential opportunities.
He pointed out that Nigeria’s success in navigating this transition would be crucial not only for the future of its energy sector but also for the overall sustainability of the nation’s economy.
The representative of civil society on the NEITI board, Erisa Danladi added that the energy transition brings both opportunities and challenges for Nigeria. While it could offer avenues for economic diversification, innovation, and job creation, it also raises concerns about revenue stability, energy access, and social equity, particularly for vulnerable populations.
Danladi highlighted that the methodology workshop is a critical step in ensuring that the study’s findings are based on robust research, comprehensive stakeholder engagement, and actionable insights. The results of the study will not only inform Nigeria’s policy direction but also serve as a reference for other resource-rich nations facing similar transitions.
The study, led by Friday Ohuche, is expected to produce its findings in 2025
