Resources-Blessed but Energy-Poor: A Critical Review of the Paradox of Energy Delivery in Nigeria

Abstract: Energy is essential for the growth and improved livelihood of any nation. Nigeria, though blessed with abundance of oil and gas, and has good land mass and natural resources for renewable energy, struggles with energy delivery. Many industries have shut down due to high energy cost or unavailability of the energy required to support their operations. Through critical review of existing studies on the Nigerian energy delivery, this study identified that the Nigerian energy challenges stem from infrastructural issues, environmental degradation, inconsistent government policies, poor regulatory framework and limited investments in renewable energy. However, the challenges can be mitigated if there is renewed policy thrust by the Nigerian government, energy incentives, stakeholders’ involvement in decision-making in the sector and diversification of public power supply into renewable energy. As much as Nigeria still struggles with energy delivery from crude oil and gas, it is obvious that the future of energy delivery in Nigeria lies in resort to renewable energy sources.

Oil and gas, energy delivery, renewable energy, policy, environmental degradation

1. Amadi, H. N., Madu, M. C., Ojuka, O. E., & Igbogidi, O. N. (2024). Renewable Energy in Nigeria: Prospects and Challenges. European Journal of Advances in Engineering and Technology, 11(4), 51-60 [Google Scholar] [Crossref]

2. Sambo, A. S. (2008). Matching electricity supply with demand in Nigeria. International Association for Energy Economics, 4, 32-36Sambo, A. S. (2010, June). Renewable energy development in Nigeria. In Energy commission of Nigeria paper presented at the World’s future council and strategy workshop on renewable energy, Accra, Ghana. [Google Scholar] [Crossref]

3. Santoyo-Castelazo, E., Gujba, H., & Azapagic, A. (2011). Life cycle assessment of electricity generation in Mexico. Energy, 36(3), 1488-1499. https://doi.org/1016/j.energy.2011.01.018 [Google Scholar] [Crossref]

4. Yatim, P., Mamat, M., Mohamad-zailani, S., & Ramlee, S. (2016). Energy policy shifts towards sustainable energy future for Malaysia. Clean Technologies and Environmental Policy, 18(6), 1685-1695. https://doi.org/10.1007/s10098-016-1151-x [Google Scholar] [Crossref]

5. Akinbami, J. F., Ilori, M. O., Oyebisi, T. O., Akinwumi, I. O., & Adeoti, O. (2001). Biogas energy use in Nigeria: Current status, future prospects and policy implications. Renewable and Sustainable Energy Reviews, 5(1), 97-112. https://doi.org/10.1016/S1364-0321(00)00005-8 [Google Scholar] [Crossref]

6. Amokwu, T. I. (2016). Repositioning renewable energy for rural electrification in a fossil fuel-rich economy. Journal of Community Positive Practices, 16(2), 70-85 [Google Scholar] [Crossref]

7. Ezema, I. C., Olotuah, A. O., & Fagbenle, O. I. (2016). Evaluation of energy use in public housing in Lagos, Nigeria: Prospects for renewable energy sources. International Journal of Renewable Energy Development, 5(1), 15-24. https://doi.org/10.14710/ijred.5.1.15-24 [Google Scholar] [Crossref]

8. Ajisafe, B. O. (2024). Energy Poverty and Polycentric Governance Approach: A Case Study of Nigeria and Lagos State Energy Environment (Master's thesis, University of Wyoming) [Google Scholar] [Crossref]

9. Obada, D. O., Muhammad, M., Tajiri, S. B., Kekung, M. O., Abolade, S. A., Akinpelu, S. B., & Akande, A. (2024). A review of renewable energy resources in Nigeria for climate change mitigation. Case Studies in Chemical and Environmental Engineering, 9, 100669. https://doi.org/10.1016/j.cscee.2024.100669 [Google Scholar] [Crossref]

10. Adeleye, S. A., Adebanji, B., & Awogbemi, O. (2024). Renewable energy sources acceptability for decentralized energy system in Nigeria: Issues, challenges and prospects. Science and Technology for Energy Transition, 79, 44. https://doi.org/10.2516/stet/2024039 [Google Scholar] [Crossref]

11. Hepbasli, A., & Alsuhaibani, Z. (2011). A key review on present status and future directions of solar energy studies and applications in Saudi Arabia. Renewable and Sustainable Energy Reviews, 15(9), 5021–5050. https://doi.org/10.1016/j.rser.2011.07.052 [Google Scholar] [Crossref]

12. Matatiele, P., & Gulumian, M. (2016). A cautionary approach in transitioning to 'green' energy technologies and practices is required. Reviews on Environmental Health, 31(2), 211-223. https://doi.org/10.1515/reveh-2016-0004 [Google Scholar] [Crossref]

13. Oniemola, P. K. (2016). Why should oil rich Nigeria make a law for the promotion of renewable energy in the power sector? Journal of African Law, 60(1), 29-55. https://doi.org/10.1017/S0021855315000212 [Google Scholar] [Crossref]

14. Aliyu, A. S., Dada, J. O., & Adam, I. K. (2015). Current status and future prospects of renewable energy in Nigeria. Renewable and Sustainable Energy Reviews, 48, 336-346. https://doi.org/10.1016/j.rser.2015.03.098 [Google Scholar] [Crossref]

15. Surmann, M., Brunauer, W. A., & Bienert, S. (2016) The energy efficiency of corporate real estate assets: The role of energy management for corporate environmental performance. Journal of Corporate Real Estate, 18(2), 68-101. https://doi.org/10.1108/JCRE-12-2015-0045 [Google Scholar] [Crossref]

16. Bochkarev, D. (2015). The politics and economics of gas in the Moscow-Ankara-Brussels triangle. Turkish Review, 5(5), 394-398,400. Retrieved from https://issuu.com/turkishreview [Google Scholar] [Crossref]

17. Brusylovska, O. (2017). Energy safety of Ukraine: Russian factor. On-Line Journal Modelling the New Europe, 22, 139-160 [Google Scholar] [Crossref]

18. Craig, O. O., Brent, A. C., & Dinter, F. (2017). Concentrated solar power (CSP) innovation analysis in South Africa. South African Journal of Industrial Engineering, 28(2), 14-27. https://doi.org/10.7166/28-2-1640 [Google Scholar] [Crossref]

19. Krane, J. (2015). A refined approach: Saudi Arabia moves beyond crude. Energy Policy, 82, 99–104. https://doi.org/10.1016/j.enpol.2015.03.008 [Google Scholar] [Crossref]

20. Løvdal, N., & Neumann, F. (2011). Internationalization as a strategy to overcome industry barrier: An assessment of the marine energy industry. Energy Policy, 39, 1093–1100. https://doi.org/10.1016/j.enpol.2010.11.028 [Google Scholar] [Crossref]

21. Kolawole, A., Adesola, S. & De Vita, G. (2017). A disaggregated analysis of energy demand in Sub-Saharan Africa. International Journal of Energy Economics and Policy, 7(2), 224-235 [Google Scholar] [Crossref]

22. Obi, K. O., & Uzodigwe, A. A. (2016). Assessing the optimal electricity supply in Nigeria. Journal of Business Studies Quarterly, 7(3), 110-126 [Google Scholar] [Crossref]

23. Akorede, M. F., Ibrahim, O., Amuda, S. A., Otuoze, A. O., & Olufeagba, B. J. (2017). Current status and outlook of renewable energy development in Nigeria. Nigerian Journal of Technology, 36(1), 196-212. https://doi.org/10.4314/njt.v36i1.25 [Google Scholar] [Crossref]

24. Emodi, N. V., & Boo, K. J. (2015). Sustainable energy development in Nigeria: Current status and policy options. Renewable and Sustainable Energy Reviews, 51, 356-381. https://doi.org/10.1016/j.rser.2015.06.016 [Google Scholar] [Crossref]

25. Ak, O., Alege, P. O., Ajayi, O. O., & Okodua, H. (2017). Energy pricing policy and environmental quality in Nigeria: A dynamic CGE approach. International Journal of Energy Economics and Policy, 7(1), 268-276 [Google Scholar] [Crossref]

26. Ambituuni, A., Amezaga, J. M., & Werner, D. (2015). Risk management framework for safe transportation of petroleum products in Nigeria: Learning from past accidents and good practices. Risk Management, 17(4), 329-351. https://doi.org/10.1057/rm.2015.18 [Google Scholar] [Crossref]

27. Ite, A. E., Ibok, U. J., Ite, M. U., & Petters, S. W. (2013). Petroleum exploration and production: past and present environmental issues in the Nigeria’s Niger Delta. American Journal of Environmental Protection, 1(4), 78-90 [Google Scholar] [Crossref]

28. Nriagu, J., Udofia, E. A., Ekong, I., & Ebuk, G. (2016). Health risks associated with oil pollution in the Niger Delta, Nigeria. International Journal of Environmental Research and Public health, 13(3), 346. https://doi.org/10.3390/ijerph13030346 [Google Scholar] [Crossref]

29. Oludaisi, A., Kayode, A., & Ayodeji, O. (2017). Bridging environmental impact of fossil fuel energy: The contributing role of alternative energy. Journal of Engineering Studies and Research, 23(2), 22-27 [Google Scholar] [Crossref]

30. Ite, A. E., & Ibok, U. J. (2013). Gas flaring and venting associated with petroleum exploration and production in the Nigeria’s Niger Delta. American Journal of Environmental Protection, 1(4), 70-77 [Google Scholar] [Crossref]

31. Ohunakin, O. S., Adaramola, M. S., Oyewola, O. M., & Fagbenle, R. O. (2014). Solar energy applications and development in Nigeria: Drivers and barriers. Renewable and Sustainable Energy Reviews, 32, 294-301. https://doi.org/10.1016/j.rser.2014.01.014 [Google Scholar] [Crossref]

32. Oyewunmi, O. A., & Olujobi, O. J. (2016). Transparency in Nigeria's oil and gas industry: Is policy re-engineering the way out? International Journal of Energy Economics and Policy, 6(3), 630-636 [Google Scholar] [Crossref]

33. Tylock, S., Seager, T. P., Snell, J., Bennett, E. R. & Sweet, D. (2012). Energy management under policy and technology uncertainty. Energy Policy, 47, 156-163. https://doi.org/10.1016/j.enpol.2012.04.040 [Google Scholar] [Crossref]

34. Anejionu, O. C. D., Ahiarammunnah, P.-A. N., & Nri-ezedi, C. J. (2015). Hydrocarbon pollution in the Niger Delta: Geographics of impacts and appraisals of lapses in extant legal framework. Resources Policy, 45, 65–77. https://doi.org/10.1016/j.resourpol.2015.03.012 [Google Scholar] [Crossref]

35. Hassan, A., & Kouhy, R. (2015). From environmentalism to corporate environmental accountability in the Nigerian petroleum industry: Do green stakeholders matter? International Journal of Energy Sector Management, 9(2), 204–226. https://doi.org/10.1108/IJESM-05-2014-0008 [Google Scholar] [Crossref]

36. Oyedepo, S. O. (2014). Towards achieving energy for sustainable development in Nigeria. Renewable and Sustainable Energy Reviews, 34, 255-272. https://doi.org/10.1016/j.rser.2014.03.019 [Google Scholar] [Crossref]

37. Emodi, N.V. and Boo, K.J. (2015) Sustainable energy development in Nigeria: Overcoming energy poverty. International Journal of Energy Economics and Policy, 5, 580-597 [Google Scholar] [Crossref]

38. Lunt, P., Ball, P., & Levers, A. (2014). Barriers to industrial energy efficiency. International Journal of Energy Sector Management, 8(3), 380-394. https://doi.org/10.1108/IJESM-05-2013-0008 [Google Scholar] [Crossref]

39. Frederick, O. O., Idris, A. A. K. & Othman, J. (2013). The causes, effects and potential solutions to the deep-rooted Niger Delta oil crisis. International Journal of Social and Behavioral Science, 1(6), 122-129 [Google Scholar] [Crossref]

40. Hussaini, I. & Abdul Majid, N. (2014). Human behaviour in household energy use and the implications of energy efficiency delivery: A case of Bauchi, Nigeria. International Journal of Energy Sector Management. 8(2), 230-239. https://doi.org/10.1108/IJESM-10-2013-0005 [Google Scholar] [Crossref]

41. Ajayi, O. O., & Ajayi, O. O. (2013). Nigeria’s energy policy: Inferences, analysis and legal ethics toward RE development. Energy Policy, 60, 61–67. https://doi.org/10.1016/j.enpol.2013.05.095 [Google Scholar] [Crossref]

42. Hilili, M. J., Akadiri, S. S., & Eneanya, C. N. (2024). Powering Nigeria's future: balancing renewable and non-renewable energy for environmental sustainability. Energy Systems, 1-22. https://doi.org/10.1007/s12667-024-00686-4 [Google Scholar] [Crossref]

43. Pascu, B., Ratezanu, I., & Stan, I. L. (2016). Creating sustainable and safe green energy. Calitatea, 17, 408-411 [Google Scholar] [Crossref]

44. Usman, Z. G, & Abbasoglu, S. (2014). An overview of power sector laws, policies and reforms in Nigeria. Asian Transactions on Engineering, 4(2), 6-12 [Google Scholar] [Crossref]

45. Okotoni, O. (2004). Awareness and environmental management in oil companies in Nigeria. Journal of Human Ecology, 15(1), 13-17 [Google Scholar] [Crossref]

46. Pacesila, M. (2015). Solar energy policy developments in Europe. Theoretical and Empirical Researches in Urban Management, 10(1), 13-24 [Google Scholar] [Crossref]

47. Rogers, R. & Wishland, L. (2014). Solar power on the rise: The technologies and policies behind a booming energy sector. Union of Concerned Scientists. 1-16 [Google Scholar] [Crossref]

48. Bãjenescu, T.,I. (2017). La photonique verte/Green photonics. Electrotehnica, Electronica, Automatica, 65(1), 7-12 [Google Scholar] [Crossref]

49. Ogwumike, F. & Ozughalu, U. (2015). Analysis of energy poverty and its implications for sustainable development in Nigeria. Environment and Development Economics, 1. 1-18. https://doi.org/10.1017/S1355770X15000236 [Google Scholar] [Crossref]

50. Ugwu, M. C., Adewusi, A. O., & Nwokolo, N. E. (2024). The Role Of Public-Private Partnerships In Building Clean Energy Infrastructure In The United States And Nigeria. International Journal of Management & Entrepreneurship Research, 6(4), 1049-1068. https://doi.org/10.51594/ijmer.v6i4.984 [Google Scholar] [Crossref]

• Examining Fatal Motorcycle Crashes in Malaysia: Rider Age, Road Attributes and Collision Partner Dynamics
• Algorithmic Trading Bot Using Artificial Intelligence Supertrend Strategy
• Improving the Hybrid FSO/LI-FI/UWOC Network's
• Constructive Strategies for Enhancing Public Engagement in County Governance: A Focus on Nandi, Kenya, 2024.
• The Impact of Short-Term Debt on the Performance of Manufacturing Companies Listed on the Ghana Stock Exchange