Nigeria's climate responsiveness: Navigating energy-climate and techno-financial conundrums in the low-carbon energy transition

Abstract

This paper reviewed contexts of climate responsiveness in Nigeria's energy sector, focusing on energy-climate complexities, techno-financial challenges in the low-carbon energy transition (ET), adopting a narrative review approach. Findings reveal that Nigeria's climate responsiveness in the energy sector is marked by contradictory paths–promoting a low-carbon ET while simultaneously expanding fossil fuel development amid rising trend in CO₂ emissions. The technological challenges that limit the country's low-carbon ET include old grid infrastructures, poor grid maintenance, inadequate generation and transmitting capacity, shortage of critical CC mitigation technologies, reliance on imported technologies, poor integration of RE into national grid, poor research, development, and innovation, and inadequate skilled manpower. Financial threats to the low-carbon ET include mounting debt burden, poor fiscal policy implementation, fossil energy-skewed investment, lack of investment guarantee, perceived high-risk of RE investment, weak domestic-driven funding mechanisms, corruption, poor harnessing of funding opportunities, and high initial cost of low-carbon technologies. The paper concludes that without bold and well-coordinated techno-financial measures, Nigeria's low-carbon ET is likely to remain sluggish and far from its intended targets. Proposed pathways to mitigating the technological challenges include grid modernization and decentralization, advancing research, development and innovation, promotion of energy efficient development, and facilitation of local manufacturing and technological transfer, while financial strategies for low-carbon ET include adoption of innovative financing models, such as PPPs, cooperatives, and third-party ownerships, promotion of cost reduction strategies, de-risking RE investments, adoption of carbon pricing and subsidy reforms, canvassing for debt forgiveness, and leveraging international climate financing. The insights provided could foster replicable climate-friendly energy development while simultaneously enhancing energy access in developing countries with similar energy trajectories.