Abstract

Author:
Augustine Okon Jacob, Okon Joseph Umoh, Udo Saviour Sebastian

Doi: 10.26480/egnes.01.2025.39.45

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Nigeria’s economy remains heavily dependent on oil and gas, making it vulnerable to the impacts of global decarbonization trends. Recognising this, Nigeria’s Energy Transition Plan and updated Nationally Determined Contribution commit to achieving net-zero emissions by 2060; yet, meeting these targets raises complex economic and social challenges. This review aims to critically examine the financial implications of Nigeria’s energy transition, with a focus on aligning climate change mitigation with sustainable development and inclusive growth. Using a systematic literature review guided by PRISMA standards, the study analysed 67 peer-reviewed articles, policy documents, and reports published between 2000 and 2024, applying thematic synthesis to extract insights on macroeconomic impacts, employment, energy access, and equity. Findings indicate that declining fossil fuel revenues threaten fiscal stability and GDP, but that investments in renewables could create new industries, diversify exports, and generate millions of jobs if inclusive policies are adopted. However, infrastructural deficits, regulatory inconsistencies, and financing gaps pose significant barriers to progress. Discussion highlights that without deliberate measures, vulnerable groups, including women and oil-dependent communities, risk being excluded from the benefits of the transition, exacerbating inequality. The study concludes that Nigeria requires coherent policies, targeted investments, and just transition strategies to ensure that economic diversification aligns with its climate goals. The novelty of this review lies in its comprehensive synthesis of economic and social dimensions of Nigeria’s energy transition, providing actionable recommendations for policymakers, investors, and development partners to design an inclusive, resilient, and sustainable low-carbon economy.