Introduction
According to the United
Nations, energy consumption constitutes a dominant contributor to climate
change, accounting for about 60% of the total greenhouse gas emissions globally.[1]
Therefore, energy production and consumption are capable of impeding the
realization of the sustainable development agenda. Meanwhile, life and, in
fact, the achievement of the sustainable development agenda as a whole, depend to
a large extent on the availability of energy.[2] This connotes energy as a
two-edged sword, and as such, it is necessary to create a balance between
energy consumption on one hand, and the adverse impacts of energy on the other
hand. Furthermore, this highlights the need to exploit energy resources in a
manner that ensures that the positive impacts of energy are not outweighed by
the negative impacts, and the negative impacts of energy are adequately
managed. Arguably, these objectives are summed up in the concept of energy
security and sustainable development.
Summarily, therefore,
energy security and reduction of the adverse impacts of energy are two
overriding challenges the energy sector faces on the path towards sustainable
development. Addressing these challenges requires the availability of
relatively environmentally friendly energy sources with lower adverse impacts
on the environment and climate. Globally, natural gas is increasingly being
identified as a viable energy source to address these challenges. Hence, this
paper explores the role of natural gas in enhancing energy security and
sustainable development in Nigeria.
Subsequent sections of
the paper are structured as follows: subsequent aspects of this introductory
section present a review of the concept of energy security, the relationship
between energy security and sustainable development, and the indicators of energy
security in national jurisdictions. While section two presents a conceptual
analysis of energy security and sustainable development within the Nigerian
context, section three explores the potential of natural gas as a solution to
address the dual challenge of energy security and sustainable development in
the country. Section four focuses on the challenges and prospects of natural
gas development and energy security in Nigeria, and section five concludes the
study with the lessons learnt and recommendations.
1. The Concept of Energy Security
Energy security is an
evolving terminology that cuts across diverse fields such as economic,
political, social, environmental, and technical.[3] Currently, there is no
singular generally accepted definition of the term, as it is defined severally
by different authors and international institutions, using various indices. For
instance, Hisham Khatib describes energy security as the continuous availability
of energy in varied forms, in sufficient quantities, and at reasonable prices.[4]
Similarly, Kowalski and Vilogorac define energy security as the availability of
usable energy supplies at economic price levels and in sufficient quantities
and timeliness so that the economic and social development of a country is not
materially constrained.[5]
According to the International Energy Agency (IEA), energy security refers to
the uninterrupted availability of energy sources at an affordable price.[6]
The Asia Pacific Energy Research Centre defines energy security as “the
ability of an economy to guarantee the availability of the supply of energy
resources in a sustainable and timely manner with the energy price being at a
level that will not adversely affect the economic performance of the economy”.[7]
According to the World Energy Council, energy security encompasses the
reliability of renewables, availability and accessibility of critical energy
resources, and resilience of energy resources in the face of physical and other
threats.[8]
Notwithstanding the
various definitions of energy security that have been given in the literature,
it is clear that some central themes cut across all definitions, including
availability, accessibility, affordability, and sustainability of energy.
Hence, the major elements of the concept of energy security may be summed up into
an energy trilemma encompassing issues such as physical energy security,
economic energy security, and energy sustainability. While physical energy
security entails the availability, reliability, and accessibility of energy
supply sources, economic energy security entails the affordability of energy
resource acquisition and energy infrastructural development, which ensures that
the cost of energy to consumers is minimized. Energy sustainability entails the
sustainable development and use of energy resources in a manner that minimizes
environmental damage, including decarbonizing energy.[9]
As a result of the rapid
economic expansion, industrial growth, and urbanization, as well as emerging
new uses of energy globally, energy security is increasingly becoming a
pressing issue in many countries around the world. It constitutes a critical
issue that is significant to various stakeholders in society, such as
policymakers, corporate organizations, and individual members of society, whose
quality of life depends on energy services. This is because energy services are
paramount to sustain modern lifestyles and business activities. Hence, it is
opined that energy is not just a commodity but a precondition for other
commodities, and can be likened to other basic factors of survival such as air,
water, and earth.[10]
The increasing energy security concerns are more so because the supplies of
energy resources available to meet the various energy demands are finite and,
most of the time, non-renewable.[11]
Meanwhile, energy insecurity can occasion significant financial, economic, and
social risks, which may result in short and long-term socio-economic costs in
terms of the loss of production and consumers’ welfare, and consumers’
adjustments to mitigate their losses.[12]
In other words, energy security has implications for the realization of the
global sustainable development agenda.
1.1.
The Relationship between
Energy Security and Sustainable Development
Energy security is an
integral and significant aspect of a nation’s sustainable development.
Empirical studies have shown that energy is correlated with various indices of
economic growth and social well-being.[13] This is because energy is
an enabler of economic growth and development due to its role in industries and
production processes. Specifically, energy influences productivity in several
economic sectors, including industry, health, commerce, education, and
agriculture, among others. This is because energy outputs such as light, power,
heat, among others, constitute some of the essential inputs that factories and
industries run on, and also provide support for education, health, and other
social services.[14]
This is in addition to its role in domestic activities such as cooking, cooling
and heating systems, transportation, among others, which directly affect the
quality of life and social well-being.
First, energy is
essential to the promotion of health and well-being as required by Goal 3 of
the Sustainable Development Agenda. This is because ensuring healthy lives and
well-being requires reliable energy. For instance, unreliable access to
electricity may make it challenging to operate medical facilities and maintain
a functioning cold chain system to keep vaccines refrigerated, thereby causing a
public health crisis.[15]
Poor energy access also threatens health in the home. Some billions of people,
especially those in rural areas, most of the time lack access to clean cooking
energy and rely primarily on biomass fuels, which are burnt inefficiently,
thereby contributing to environmental degradation and several health risks.[16]
In fact, the World Health Organization (WHO) links 3.8 million deaths annually
to household air pollution from burning unclean fuels in the home.[17]
Moreover, women and children are mostly responsible for fuel collection and
housekeeping in such rural areas, and this undermines their access to quality
education, professional prospects, and their quality of life. This engenders
the deepening gender inequality among such a rural population.[18]
Further, energy plays an
important role in academic excellence and enhancing digital literacy, as it is
required to power computers and other IT devices that enhance learning.[19]
Lack of energy to power light, IT systems, etc., may therefore inhibit access
to quality education, thereby threatening future earning potential, and
adversely impacting the realization of goals 1, 4, and 10 of the Sustainable
Development Agenda. Poor energy access may also adversely impact the promotion
of inclusive industrialization, as well as foster innovation as required by Goal
9 of the Sustainable Development Agenda. Modern energy services such as natural
gas and renewable energy, among others, may offer support for the creation of
decent jobs, while driving economic growth in line with Goal 8 of the Sustainable
Development Agenda. In addition, the sustainability of the commercial
agricultural sector hinges on the deployment of mechanized and sophisticated
farm equipment and technologies, which are powered by energy.[20] Absence
of reliable and affordable energy to power such equipment and technologies may
hamper food security, thereby threatening Goal 2 of the Sustainable Development
Agenda.
The realization of the
sustainable development agenda is therefore dependent on the availability of
energy. This has informed the position that energy security is a significant
criterion for the assessment of the world’s progress towards the realization of
the Sustainable Development Agenda.[21]
As put by another author, enhancing access to affordable energy and per capita
energy consumption is a prerequisite to sustainable development.[22]
This is because energy consumption per capita constitutes an important
determinant of a country’s standard of living.[23] This indicates that energy
security has implications for the various aspects of sustainable development,
including economic growth and development, social well-being, and environmental
protection, and sustainable development cannot be effectively realized without
the provision of affordable, reliable, and sustainable energy for all.
1.2.
Indicators of Energy
Security
Some indicators for
assessing the status of energy security in jurisdictions across the world have
been presented in the literature. First, there are energy reserves, that is,
the estimated quantity of energy resources that exist with reasonable certainty
and which can be accessed with available technology at an economically viable
cost.[24]
In other words, the volume of energy resources available in a country and the
extent to which those resources are developed constitute a significant
determinant of the state of energy security in that country. Second, is the
ratio of energy production to consumption. In tandem with this is the total
volume of clean energy in a country’s energy mix.[25] This is
more so as countries continue to pursue the goal of decarbonization. Third, is the
energy trade balance, which refers to the difference between the volume of
energy imports and exports within a country.[26] Countries that are net
exporters of energy have a negative energy trade balance, while those that are
net importers of energy have a positive energy trade balance. This implies that
countries with a negative energy trade balance are more energy secure than
those with a positive energy trade balance.[27]
Fourth, there are energy
prices that have implications for energy affordability for consumers. This
indicates that energy security may be impeded, especially in developing and
least developed countries, when energy prices rise rapidly.[28] The share
of renewable energy in a country’s energy mix is another indicator of energy
security. Generally, countries that rely on a limited portfolio of
non-renewable energy sources are less energy secure compared to those with
access to abundant renewable energy sources.[29] This is a result of the
inexhaustible and unlimited nature of renewable energy sources. Similar to this
is the issue of energy diversity, which ensures that energy systems are
resilient and adaptable to shocks in energy supplies.[30] Countries
that rely on a limited portfolio of non-renewable energy resources are less
energy secure than those with an abundant and diverse supply of energy
resources.
2.
Energy Security and Sustainable
Development in Nigeria: A Conceptual Analysis
The rapidly increasing
industrialization and urbanization in Nigeria, coupled with population growth,
have implications for energy demand and energy consumption in the country.[31]
Ultimately, these pose significant challenges to energy security and the
achievement of targeted sustainable development goals in the country. The
energy paradox in Nigeria has long been a topic of discourse in the literature.
In spite of being endowed with abundant energy resources, both renewable and
non-renewable, Nigeria has been unable to efficiently harness these resources
to ensure energy security for its teeming population. The country is faced with
significant energy poverty, with about 71% of the population unable to access
reliable energy.[32]
According to the 2024 global sustainable development report, Nigeria’s progress
towards ensuring access to affordable, reliable, sustainable, and modern energy
for all is plagued by major challenges.[33] Specifically, while the
population with access to electricity, clean fuels, and technology for cooking,
as well as the carbon emissions from fuel combustion per total electricity
output, is stagnating, the renewable energy share in the total final energy
consumption is decreasing.[34]
This indicates that Nigeria is not making any tangible progress towards the
realization of energy security in the country. Concerning progress made towards
the realization of the Sustainable Development Agenda, the report ranked
Nigeria 146 out of 166 countries, with an index score of 54.58%. Based on the
report, while Nigeria is on track to realize its climate goals, progress made
towards the realization of all other sustainable development goals is either
stagnating, decreasing, or moderately improving.[35]
Several empirical studies
have indicated that the stagnation of energy poverty in the country has a
direct adverse impact on the state of sustainable development in the country.
According to a recent study, energy poverty has had adverse effects on the
country’s national economic development, having taken a toll on virtually all
the country’s economic sectors.[36]
Specifically, lack of access to reliable energy has increased the cost of doing
business in the country, with multiplier effects on the economy, including
rapid inflation, non-competitiveness of its domestic products, outflow of
foreign investments, and reduced domestic investments, and a very poor standard
of living.[37]
Another recent empirical study reveals that energy poverty occasions various
adverse socio-economic impacts on rural populations in Nigeria.[38]
Similarly, in a study on the impact of energy poverty on human capital
development in Nigeria, it was found that energy poverty poses a significant
adverse impact on the health and education outcomes of individuals in the
country.[39]
Also, it can be deduced from another study that the over-dependence on
petroleum for self-generation of energy in the country occasions severe
environmental degradation and a major challenge confronting sustainable
development in the country.[40]
As indicated by the 2024 Sustainable
Development Report, the progress made towards ensuring energy security in
Nigeria is plagued by major challenges. For instance, renewable energy
development in Nigeria is plagued by several challenges, including high capital
costs, inadequate technical expertise, a weak regulatory framework,
infrastructural limitations, and ineffective grid integration, among others.[41]
These challenges have inhibited the large-scale deployment of renewable energy
in the country. Likewise, although Nigeria is a major oil producer with an abundance
of hydrocarbon reserves to power its national grid, the country still imports a
substantial percentage of its required refined petroleum products. This has
occasioned some challenges in the country, particularly the high cost of energy,
resulting in non-affordability of energy for low-income earners, uncertainty in
the availability of petroleum products, among others.[42] In a
recent report,[43]
the Minister of Power in Nigeria raised the concern that over 60% of companies
in the manufacturing sector had exited the national grid and resorted to
self-generation as a result of unreliable power supply. Most of these companies
self-generate energy through generators powered by diesel and petrol. The
surging price of these petroleum products has a significant impact on the
production costs of these companies. According to the Manufacturers Association
of Nigeria (MAN), the surge in energy costs was one of the highest operating
expenses for manufacturers in Nigeria in 2024, as about 40% of their total
production costs were spent on generating energy.[44] Aside from
the surging price of these petroleum products with the attendant impact on
production costs, continued petroleum production and consumption are antithetical
to the country’s climate goals as well as the global sustainable development
agenda. Moreover, the resultant high production cost further results in an
increase in the price of manufactured products, making such products
uncompetitive against imported products.
In the same report, MAN
alerted that economic loss of about N10trillion is incurred annually by Nigeria
on account of inadequate power supply in the country. This amount is estimated to
account for about 2% of the total GDP of the country.[45] Also, the
inadequacy, unreliability, and unaffordability of energy supplies in Nigeria have
led to the folding up of businesses and industries in the country, resulting in
unemployment and such other adverse socio-economic impacts. This has further
been aggravated by the removal of fuel subsidy by the government in 2023,
leading to an increase in the price of petroleum products by more than 100%,
and with attendant multifaceted socio-economic implications.[46] The
generality of all these issues has significant implications for energy security
and sustainable development in Nigeria.
Aside from businesses and
industries, the erratic nature of energy supply in Nigeria, coupled with the
instability of the national grid, has continued to encourage private energy
generation through fossil-fuel-powered generators. This has become a necessity
for private individuals to meet their energy demands. This is in addition to
the use of combustion engines powered by petroleum in the industrial and
transportation sectors of the economy.[47] Such a carbon-intensive
energy supply and consumption in the country may hinder the achievement of the
government’s various climate goals and targets. Moreover, such high reliance on
petroleum, coupled with inadequate domestic production capacity, indicates that
Nigeria will continue to import petroleum products at high international market
prices in order to augment its domestic production. This poses a multiplier
effect on the affordability of energy by domestic consumers, thereby putting
them in a precarious position regarding energy security. In fact, due to the
high cost of modern energy, there has been a surge across Nigeria towards
traditional energy sources, such as firewood and charcoal, for powering
small-scale businesses such as fish processing and small-scale bakeries, as
well as domestic uses such as cooking and heating.[48] These
traditional energy sources are, however, not environmentally sustainable, as
they accelerate deforestation and are harmful to human health.
Thus, the major factors
affecting energy security in Nigeria include an inadequate energy supply to
demand ratio, high cost of energy due to positive energy trade balance
resulting in energy unaffordability for many of the population, and energy
sustainability issues arising from the reliance on carbon-intensive and
unsustainable energy resources. Therefore, it may be challenging to achieve
energy security in the country without a significant energy mix and
diversification, an energy supply boost, as well as the adoption of
eco-friendly and climate-compliant practices in energy production. The complex
and multifaceted challenges associated with renewable energy development in
Nigeria, coupled with the abundance of low-carbon energy resources such as
natural gas, make natural gas development an imperative for enhancing energy
security and sustainable development in the country.
3.
Energy Security and Sustainable
Development: The Role of Natural Gas
Energy security and
reduction of energy’s contribution to climate change have been described as two
overriding challenges the energy sector faces on the path towards sustainable
development.[49]
Addressing these challenges requires the availability of relatively
environmentally friendly energy sources with lower adverse impacts on the
environment and climate. As succinctly put by an author, long-term energy
security concerns border on timely investments in energy supply in line with
economic developments and environmental needs.[50] Hence, the notion of
energy security is posited as encompassing a balance of trade-offs between
three significant energy trilemmas, which include energy availability,
reliability and accessibility, energy affordability, and energy sustainability.[51]
Natural gas constitutes a
viable energy resource for ensuring energy security when examined against the
bedrock of the energy trilemma. Natural gas is identified as capable of playing
a key role in the development of energy markets, especially as a result of its
low-carbon emissions, as well as its availability to address the intermittent
nature of renewable energy generation.[52] Compared to other fossil
fuels, natural gas is a highly versatile and efficient energy resource; it is
less polluting, and its exploitation does not jeopardize normal environmental
conditions, especially if paired with decarbonizing technologies or pathways,
making it a viable option on the path to a low-carbon energy future.[53]
In fact, natural gas emits about 50% less greenhouse gases than coal, and about
20% less greenhouse gases than liquid fuels. This makes it a more sustainable
energy option for powering industries, homes, and fueling transportation, among
others, than other fossil fuels.[54]
Hence, fuel-switching from carbon-intensive fuels to natural gas has been
described as one of the crucial climate actions required towards meeting the Sustainable
Development Agenda.[55]
This is because the exploitation of natural gas poses reduced carbon intensity,
thereby contributing to reduced carbon emissions and improved energy
efficiency. As succinctly put by the International Energy Agency (IEA), natural
gas is one of the mainstays of the global
energy transition, as it replaces
more polluting fuels and limits emissions of carbon dioxide.[56] In
addition, natural gas complements renewable energy resources by providing a
reliable and accessible backup to the intermittency and unreliability of such
energy sources.[57]
According to a recent report from Wood Mackenzie, natural gas constitutes a
crucial bridge in the energy transition by supporting the expansion of
renewable energy while accelerating a shift away from more polluting fossil
fuels.[58]
Thus, natural gas contributes to bridging the gap between meeting global energy
needs and reducing emissions from energy. In other words, natural gas plays a
crucial role in striking a balance between energy security on one hand, and
environmental sustainability on the other hand.
Meanwhile, affordability
has been described as a key that can fully unlock the potential for development
transformation subsumed in energy.[59]
Aside from providing a reliable and uninterrupted source of energy supply,
natural gas is considered one of the cheapest and most affordable sources of
energy.[60]
This is a result of low gas prices in key
international markets, which promote the
competitiveness of natural gas over other fossil fuels.[61]
Moreover, natural gas is abundantly available; as of 2021, there was an
estimated volume of about 7,299 trillion cubic feet of total proven natural gas
reserves globally.[62]
Natural gas is therefore considered the cleanest fossil fuel, as well as a
cheaper and sustainable energy option for power generation.[63] This is,
however, without prejudice to the benefits of gas as a viable commercial
commodity in other applications; for instance, as high-value fuel for
transportation and domestic use, fertilizer for agriculture, and feedstock for
industries.[64]
In summary, natural gas
has a significant role to play in the search for energy security and
sustainable development globally.
4.
Natural Gas and Energy Security in
Nigeria: Challenges and Prospects
The population growth in
Nigeria is forecast to increase from the current 200million persons to about
400million persons by 2050. Meanwhile, due to the rapid urbanization that
accompanies population growth, energy demand is predicted to outpace population
growth.[65]
This connotes that the projected 100% increase in population growth will be
outpaced by a higher percentage in energy demand. This poses a significant
implication for energy security in the country. As posited by Hisham Khatib,
energy security can be ensured at a national level through the availability of
abundant and various forms of indigenous energy resources; adequate national
reserves to address transient interruption to or shortages of energy supply as
well as unpredictably high energy demand; and adequate financial resources and
technical know-how to develop indigenous renewable energy sources to meet part
of domestic energy requirements.[66]
In addition to these, however, it is noteworthy that in line with the
sustainable development agenda, the energy needed to meet the goal of energy
security in Nigeria is that which is clean, affordable, and available in
abundance. Natural gas has been described as presenting such a form of energy
security.
It is noteworthy that
Nigeria holds the largest proven natural gas reserves in Africa, and the ninth
largest in the world, with 5.94trillion cubic meters of proven natural gas
reserves as at 2023.[67]
This volume of natural gas is equal to about 65.34trillion kilowatt hours of
energy. Of this volume, about 44billion cubic meters was produced,[68]
which equals about 484billion kilowatt hour of energy. Meanwhile, the total
energy demand in Nigeria during this period stood at about 40billion kilowatt hours
only.[69]
During the same period, the total renewable energy capacity in the country
stood at 2.98 gigawatts,[70]
accounting for only about 21% of the total energy capacity in the country.[71]
This indicates that renewable energy is yet to attain the capacity where it can
completely phase out and replace fossil fuels in Nigeria. The broader
implication is that natural gas, regarded as the cleanest fossil fuel, and
which is abundantly available in Nigeria, may be sustainably developed and
adequately deployed to ensure energy security in the country in the short to
medium term.
However, despite the
abundance of natural gas resources present in Nigeria, a significant portion of
these resources remains unexploited to enhance energy security in the country.
This has been attributed to several challenges, including funding problems as a
result of inadequate government funding of the sector, corruption, lack of
technical skills, and inadequate energy investments.[72] For
instance, in almost 20 years, only an average of 2.53 trillion cubic feet of
gas was produced in Nigeria, constituting less than 1% of its total national
reserve. Meanwhile, of the total volume produced, associated gas accounted for
66% and non-associated gas, only 34%.[73]
Further, there is the
problem of gas shortages stemming from inadequate gas supply to power stations.[74]
For instance, even though the total energy demand in 2023 was about 40billion
kilowatt hours, only about 24 billion kilowatt hours of energy were supplied in
total. Specifically, in 2023, about 5.9 billion kilowatt hours were supplied in
the first quarter,[75]
5.91billion kilowatt hours in the second quarter,[76]
5.73billion kilowatt hours in the third quarter,[77] and
6.4billion kilowatt hours in the last quarter.[78] The implication of this is
that about 16 billion kilowatt hours of energy demand remained unmet in Nigeria
in 2023 alone. The question, therefore, is if about 484billion kilowatt hour of
energy was produced from natural gas alone, why was the total energy demand
unmet, and generally, why is energy poverty prevalent in the country? The
reason for this is the fact that most of the gas produced is exported, as
producers prefer to sell at international market rates rather than the domestic
market.[79]
Moreover, even though
natural gas is a relatively cleaner fossil fuel, it is not without its adverse
impacts, ranging from gas flaring to fugitive methane emissions and other
greenhouse gas emissions into the atmosphere in various concentrations. In
fact, methane leaks from the extraction and transportation of natural gas have
been indicated as exacerbating global climate change.[80]
Some measures that may be
harnessed to address these challenges and improve energy security in Nigeria
through natural gas development are therefore highlighted. First, there is a need
to ensure improved government funding to ensure adequate capital investments in
gas infrastructure development in Nigeria. This may be achieved through
adequate budgetary allocations to the development of the gas sector in the
country. Second, corruption in the gas sector may be addressed through improved
transparency and disclosure requirements in the administration of funding and
procurement of gas investments, such as disclosure of the beneficial owners and
politically-exposed persons involved in gas contracts. Third, the lack of
technical skills may be addressed through the implementation of local content
policies in the gas sector.
The problem of gas
shortages may be addressed through the requirements of host-granting
instruments. For instance, lessees and licensees may be required to develop a particular
ratio of gas fields to oil fields, and to retrofit carbon technologies into
their facilities to ensure that associated gas from their oil production is captured
rather than vented or flared. This will ensure that the volume of gas in the
mix of energy produced per time is increased to meet the increasing energy
demand. In addition, there is a need for a market-driven pricing system in the
Nigerian gas sector based on international market prices rather than a
domestically regulated price. This will ensure that gas producers do not
prioritize gas exports over an adequate supply of gas to the domestic market,
hence, enhancing the adequate supply of gas to power stations.
Furthermore, inadequate
energy investments may be addressed through regulatory and policy measures that
encourage private sector investment in the gas sector. Such measures may
include incentivizing investments in natural gas through economic instruments,
and disincentivizing petroleum production and consumption, such as through
contractual stipulations in petroleum contracts, and carbon pricing mechanisms.
This will promote divestment from other fossil fuel sources
and increase private sector investment in natural gas development
instead. These measures will not only improve investments in the gas sector, but
they will also boost the share of natural gas in the total national energy mix.
To ensure energy
security, countries, especially developing countries, should regard it as a
policy priority. The adoption of policies and regulatory instruments that
support the provision of energy services in cleaner and more efficient ways is
a precondition for the realization of the Sustainable Development Agenda. This
calls for legal and regulatory support for technological innovations that
mitigate the adverse impacts of natural gas development. In line with circular
economy principles, methane and other greenhouse gases associated with natural
gas production may be captured and further utilized as feedstock in various
industrial applications. This requires regulatory and policy support for
investments in CCUS and other carbon technologies. Similarly, policy and
regulatory frameworks may be adopted to foster energy efficiency through carbon
credits and such emission trading systems. There may also be the need to
enforce ESG management through an integrated reporting system, which enhances
the sustainability of natural gas development.
Moreover, energy prices
have implications for energy affordability. Energy prices are generally
determined by market conditions such as the ratio of energy supply to demand,
as well as market policies and regulations, such as taxes and sustainable
subsidies, etc., put in place by governments to achieve particular market
outcomes. Market and institutional reforms that improve gas affordability for
consumers through a responsible gas subsidy regime are recommended. Such a subsidy
regime may lead to consumers’ behavioral changes and energy preferences, thus
reducing over-dependence on petroleum as an energy source.
Furthermore, to ensure
energy security, there is a need for synergy between
different industries to enhance the expansion of the natural
gas markets and widen the scope of natural gas usage, such as in
transportation, power, domestic use, agricultural use, and feedstock for
industries. For instance, the automobile sector can be supported to explore
available technologies for the manufacturing of automobiles and other
combustion engines that utilize gas instead of petroleum and diesel. To enhance
energy efficiency, there is a need to raise public awareness on the adverse
environmental impacts of energy consumption through public orientation and
educational initiatives. This can encourage responsible consumption of energy
and energy-related products.
In conclusion, the
upscale of the development of the natural gas sector in Nigeria has the
potential to enhance energy security and sustainable development in the
country. Aside from this, it will enhance the country’s LNG export
opportunities while also expanding the opportunities for domestic gas
utilization across different sectors, including transportation, domestic, and
industrial use, among others. According to a report, the development and
domestic utilization of Nigeria’s proven gas reserves is expected to stimulate
the economy and potentially generate a Gross Value Added of US$18.3 billion to
the domestic economy annually. In addition, it is expected to support 6.5
million full-time equivalent jobs annually.[81]
Conclusion
The primary objective of
this study is the examination of the role of natural gas in enhancing energy
security and sustainable development in Nigeria. This objective is premised on
the persistent energy poverty in the country, having found that about 71% of
the nation’s population is unable to access reliable energy. This state of
energy poverty poses a multiplier effect on the realization of basic
sustainable development goals in Nigeria. As found by this study, aside from her
climate goals, Nigeria is not making any significant progress towards the
realization of all other sustainable development goals. This is because the
realization of the global sustainable development agenda depends to a large
extent on the availability of energy; for instance, energy influences economic
growth and several aspects of social well-being.
It is, however, noted
that energy is not without its downside, as energy consumption is noted to
contribute dominantly to the global atmospheric greenhouse gas concentrations,
thereby worsening global climate change. On this premise, this study submits
that energy security and energy sustainability represent two overriding
challenges that must be addressed on the path towards sustainable development.
To address these challenges, there is a need for a shift from environmentally
polluting and degrading energy resources to readily available and sustainable
energy resources.
Within the Nigerian
context, this study finds that a shift from crude oil to natural gas presents a
viable solution to addressing the country’s energy security challenges. This is
due to the versatility and efficiency of natural gas as an energy resource, as
well as its abundant availability in the country. Although natural gas is also
plagued by some challenges, it is nevertheless posited that natural gas
presents more potential to address the energy security issues in Nigeria in the
short to medium term. To satisfy the level of energy demand growth as forecast,
it is unlikely to completely phase out fossil fuels, as it is expected that
fossil fuels will continue to play a significant role in the total national
energy mix. Natural gas, regarded as the cleanest fossil fuel, in comparison to
crude oil and coal, has a dominant role to play in this regard. This is in line
with the energy trilemma, which focuses on the availability of energy resources
in abundance to meet growing energy demands, affordability of such energy
resources, and ensuring that such energy resources do not jeopardize the
environment. As already established, within the context of energy security in
Nigeria, natural gas has a critical role to play in ensuring a balance of the
energy trilemma.
Therefore, there is a need
for a deliberate focus by relevant stakeholders, such as government, industry,
consumers, and civil society actors, among others, on natural gas development
as a path to ensuring energy security and sustainable development in Nigeria.
On the part of the government, this calls for significant legal and policy
reforms that promote the commercialization of natural gas in Nigeria. Such
reforms may include regulatory provisions and incentives that support both
financial and infrastructural investments in the gas sector, ranging from
provisions on capital grants to tax incentives, and long-term green bonds,
among others. These reforms encourage private investment in the gas sector,
thereby promoting significant development of the sector. Civil society actors,
whose primary objectives usually include the promotion of social goals, may leverage
their political and social influence to promote the development of the gas
sector in Nigeria. Such groups may engage in lobbying and dialogues with the government,
as well as partnerships with the energy industry, with regard to the
development of natural gas in Nigeria.
Energy consumers, through
their marketplace decisions, also have a role to play in the development of the
natural gas sector in Nigeria. This calls for an embrace of the principle of
responsible consumption by energy consumers in Nigeria. This connotes that
energy consumers must be willing to minimize the environmental footprint of
their energy consumption by consuming less polluting natural gas rather than
more polluting oil. To support such responsible energy consumption, however, the
government must ensure the availability and affordability of gas supply in the
domestic gas market. The government may achieve this by adopting sustainable
fuel subsidy reforms, whereby a gas subsidy regime is implemented to enhance the
affordability of gas in the domestic gas market. Such a subsidy regime provides
a boost for domestic gas commercialization, as energy consumers are encouraged
to patronize natural gas over more polluting oil. To further support
responsible energy consumption, energy consumers must be aware of the risks
posed by the current pattern of energy consumption on one hand, and the
viability of a cleaner energy option, such as natural gas, on the other hand.
Such public advocacy and awareness on natural gas may be taken up by civil
society actors as part of their social objectives.
In conclusion, a nexus of
these different approaches will contribute immensely to the development of the
natural gas sector while improving gas supply, consumption, and ultimately
energy security and sustainable development in Nigeria.
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International 
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