Experts Warn Nigeria to Capitalize on Oil and Gas Before Global Shift to Renewables

Energy economists and industry leaders have called on the Federal Government to urgently monetise Nigeria’s vast oil and gas reserves before global demand for fossil fuels begins to decline amid the accelerating global energy transition.

Speaking in Abuja at the 18th Annual International Conference of the Nigerian Association for Energy Economics (NAEE) and the International Association for Energy Economics (IAEE), former President of the Nigerian Economic Society, Professor Adeola Adenikinju, warned that Nigeria risks being left behind if it fails to act swiftly.

Adenikinju noted that despite being one of the world’s top oil and gas producers, more than 87 million Nigerians still live without access to electricity.

“Nigeria remains Africa’s largest crude oil exporter but also the biggest importer of refined petroleum products — that is an unacceptable paradox,” he said.

He cautioned that as the world shifts toward renewable energy, Nigeria’s hydrocarbon resources could become stranded assets if not strategically harnessed.

“We must aggressively monetise our oil and gas resources while simultaneously expanding investments in renewables such as solar, hydro, and wind,” Adenikinju said.

He explained that global energy dynamics have become increasingly volatile due to geopolitical conflicts, wars, artificial intelligence, and economic uncertainties, all of which discourage long-term energy investments in developing nations.

Citing the Russia–Ukraine war and what he described as the “weaponisation of energy,” Adenikinju said the crisis had disrupted global supply chains and redefined energy security. “Before 2022, the European Union relied on Russia for about 40 per cent of its gas imports. That dependency has now been drastically reduced,” he observed.

He also urged African nations to move beyond exporting raw materials for renewable energy production, such as lithium and cobalt, and instead develop their own value chains to attract green capital and build local capacity.

“Africa must not be content with merely supplying raw materials for others to industrialise,” he said. “We should be participants in the global clean energy value chain.”

In his remarks, President of the International Association for Energy Economics, Professor Edmund Lewis, commended Nigeria for its leadership in advancing energy research and policy dialogue across the continent.

Representing the IAEE, Professor Wunmi Iledare described Africa’s energy transition as one that should be guided by “pragmatic prosperity” — balancing energy access, economic growth, and environmental responsibility.

“Africa’s energy future should not imitate Europe’s past,” he said. “We must find our own model that ensures access and sustainability.”

Similarly, the Secretary-General of the African Petroleum Producers Association (APPO), Omar Faruk, said the International Energy Agency’s recent acknowledgment that fossil fuels cannot be easily phased out validates Africa’s position that the continent still needs hydrocarbons for growth.

He added that Africa must strengthen its existing energy systems and technology base before fully transitioning to cleaner sources.

“If Africa fails to master its current systems before adopting new ones, it will remain trapped in dependency,” Faruk warned.

The three-day conference, themed “Emerging Geopolitics of Energy: Navigating Global Shifts and Impact on Emerging Countries,” brought together policymakers, industry leaders, and academics to examine how developing economies can navigate global energy shifts and build resilient, inclusive energy systems.