The Nigerian Association for Energy Economics (NAEE) has warned that Nigeria and other resource-dependent countries face growing fiscal vulnerabilities as global energy transitions drive down fossil fuel revenues.
Speaking at the closing session of the NAEE’s annual international conference on Tuesday, the association’s President, Dr. Hassan Mahmud, said developing countries must ensure policy coherence and institutional preparedness to manage the economic implications of the global energy shift.
He outlined key risks, including fiscal instability from declining fossil income, energy poverty and affordability challenges, rising costs of green finance, and increased technological dependence.
Mahmud urged African countries to harness their abundant natural resources — such as gas, solar, wind, and lithium — while localising value chains in refining, battery assembly, and power equipment manufacturing. He also called for the mobilisation of sovereign wealth funds and development banks, such as the proposed African Energy Bank, and the expansion of regional power pools and cross-border energy investments.
According to him, strategic opportunities lie in building resilient energy financing systems through domestic capital markets, green bonds, and carbon credits; positioning developing nations as global partners rather than passive suppliers; aligning growth, inclusion, and sustainability in transition policies; and investing in energy data systems, research, and regional innovation hubs.
Mahmud further warned against what he termed the “colonisation of finance,” pointing to environmental governance constraints, carbon trading, and carbon taxes as emerging challenges in the global energy space.
Former NAEE President, Prof. Yinka Omorogbe, in her remarks, noted that Africa remains home to about 600 million people without access to reliable energy, describing Nigeria’s downstream oil sector as “a basket case.”
“The world is moving rapidly towards net zero, and the transition is real. Half of Nigeria will not progress without adopting renewable energy. The gas talk, for now, remains just talk,” Omorogbe stated.
Other speakers at the session included NAEE Legal Adviser, Dr. Terhemen Andzenge, and Prof. Peter Ekundayo of Pan-Atlantic University, Lagos.
