NEITI: Energy Transition Risks Pushing more Nigerians Into Poverty
The Nigeria Extractive Industries Transparency Initiative (NEITI) has cautioned that the ongoing global energy transition could worsen poverty levels in Nigeria if not properly managed.
Speaking in Abuja in at a roundtable on building a framework for engagement on energy transition costs and impacts for non-state actors, NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, warned that the shift from fossil fuels to renewable energy would significantly affect government revenue from hydrocarbons.
Dr. Orji noted that energy poverty in Nigeria could deepen, with over 90 million citizens already lacking access to reliable and clean energy.
“Nigeria, like many resource-dependent nations, is both vulnerable and disadvantaged in this transition process,” he said.
“The global shift from fossil fuels to renewables is reshaping economies and societies everywhere. For Nigeria, this transition is not optional; it is inevitable. It will challenge our fiscal planning and revenue base, impact jobs, infrastructure, and host communities, and deepen energy poverty if not properly managed—at a time when 86 million Nigerians still lack access to electricity.”
He, however, stressed that the transition also presents opportunities for innovation, diversification, and repositioning of the Nigerian economy.
Also speaking, the Alternate Board Chairman of NEITI, Ambassador Matthew Adole, emphasized that careful management of Nigeria’s energy transition plan was crucial to the nation’s survival.
“The planned shift from fossil fuels, particularly oil, gas, and coal, to renewable energy poses significant risks to oil- and gas-dependent economies like Nigeria. Our country relies heavily on oil and gas not only for export earnings and government revenue but also for domestic energy consumption,” Adole explained.
He added that the NEITI National Stakeholders Working Group (NSWG) had promptly approved a study to deepen understanding of the transition, saying: “We are convinced this will facilitate meaningful engagement on the country’s transition policy and implementation.”
