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American Journal of  Environmental
Economics (AJEE) 

Nigerian Oil and Gas Industry in an Era of  Energy Transition: Analysis of
TotalEnergies’ Activities in Nigeria

Faisal C. Emetumah1*, Fatima I. Emetumah2

Volume 4 Issue 1, Year 2025
ISSN: 2833-7905 (Online)

DOI: https://doi.org/10.54536/ajee.v4i1.4871
https://journals.e-palli.com/home/index.php/ajee

Article Information ABSTRACT

Received: March 31, 2025

Accepted: May 02, 2025

Published: June 25, 2025

The oil and gas sector faces a significant quandary resulting from the need for global 
energy sources to move away from fossil fuels to more sustainable and environmentally 
friendly sources. Many International Oil Companies (IOCs) give the impression that they 
are transitioning to ‘cleaner energy’ due to environmental pollution caused by excessive 
carbon emissions from extracting and processing oil and gas resources by IOCs. However, 
literature suggests that many IOCs are welcoming these changes because we may run out 
of  our present energy sources within the next 100 years. The study used an exploratory 
design approach to appraise the Nigerian oil and gas sector during a contemporary period 
of  energy transition, with a focus on the activities of  TotalEnergies. Study findings show 
that geopolitical machinations have long hampered the operations of  IOCs in Nigeria, 
distorting the equitable allocation of  the country’s oil and gas resources.  On the surface, 
TotalEnergies’ energy transformation initiatives appear quite realistic, however, the company 
finds it challenging to completely achieve the goals of  its energy transition agenda due to 
the geopolitical complexity in Nigeria. The study proposes a four-dimensional strategy 
for enhancing economic viability during the energy transition: Advocating for better 
regulatory mechanisms, enhancing host communities’ development, concentrating on gas 
production in the transition era, and focusing on renewable energy development. The study 
recommends that more effort should be made by IOCs in renewable energy investment to 
foster sustainable energy development in the coming decades.

Keywords

Energy Transition, Nigeria, Oil 
and Gas, Renewable, Sustainability

1 Department of  Geography & Environmental Management, Imo State University, PMB 2000, Owerri, Nigeria
2 Department of  Mass Communication, Federal Polytechnic Nekede, Owerri, Nigeria
* Corresponding author’s e-mail: chinonso.emetumah@gmail.com 

INTRODUCTION
The awareness that our conventional energy sources 
are running out makes the switch from fossil fuels to 
more sustainable and renewable sources imperative. 
Human energy use was minimal for centuries due to low 
technological application in many aspects of  life on earth. 
Land transportation by humans during the Palaeolithic 
and Neolithic era was by foot or through the use of  
animals like horses, elephants or cattle. In the same vein, 
transportation using boats and ships involved manual 
paddling and rowing with oars; direction and speed of  
travel completely depended on wind velocity. However, all 
that changed dramatically during the Industrial Revolution 
when significant scientific advancements resulted in coal 
combustion to produce energy, as well as explorative 
mining to extract crude oil from the earth’s crust. Because 
these ‘new’ energy sources originate from decomposed 
organic matter of  millions of  years, they were called 
‘fossil fuels’ since they are made up of  decomposed 
organic matter from fossilized materials (Balzani, 2021). 
Advancements in science and technology were also 
fundamental in the fractional distillation of  crude oil to 
produce derivatives like diesel, kerosene, bitumen, among 
others. Also, technological advancements resulted in 
the invention of  numerous engines for vehicles, ships, 
electricity generators, and motorcycles, among others, 
that combust these crude oil derivatives.
Therefore, fossil fuels, primarily crude oil, coal and 
natural gas, have dominated the global energy stream in 
the last two centuries. In 2008, global reserves of  natural 

gas were projected to amount to over 6 quadrillion cubic 
feet, while those of  crude oil were estimated to be around 
1.4 trillion barrels (Rühl, 2008). More than 70% of  the 
world’s estimated 850 billion tons of  coal reserves in 
2006 came from North America, Russia, China, and India 
(Caillé et al., 2007). Shafiee and Topal (2009) predict that 
the world’s deposits of  coal, natural gas, and crude oil 
will drop dramatically in less than 150 years if  production 
and consumption trends continue to be relatively stable. 
Petroleum, coal, and gas accounted for more than 84% 
of  the world’s energy consumption in 2019, when there 
were over 8 billion people on the planet; global energy 
consumption at the time was close to 600 exajoules 
(Kober et al., 2020). Hence, it is not shocking that Höök 
and Tang (2013) identified that annual global production 
of  crude oil in 2010 was estimated at 85 million barrels 
per day, while that of  natural gas and coal was put at 
2900 million tonnes of  oil equivalent (Mtoe) in the same 
year. The issue of  depleting global fossil fuel reserves is 
further compounded by the pernicious environmental 
consequences caused by consistent land and water 
pollution, as well as persistent release of  greenhouse gases 
(GHGs) into the atmosphere, particularly throughout the 
20th century (Nwankwo, 2021). In many parts of  Europe, 
energy data collected in 2016 and 2017 have implicated 
fossil fuels in the prevalence of  global warming, as well 
as water and air pollution, which in turn has perniciously 
affected human and environmental health (Martins et 
al., 2019). According to Armaroli and Balzani (2011), 
worldwide costs of  fossil fuels’ impact on the climate 



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could reach $750 billion by the end of  2011; non-climatic 
costs on the environment and human health as a result of  
prolonged fossil fuel dependence were also close to $150 
billion within the same period.
Nigeria, the most populous country in Africa with a 

population of  over 1500 million, is also the continent’s 
second-largest producer of  crude oil, with an average of  
over 1 million barrels produced per day in 2023 (Sasu, 
2023). Figure 1 shows a map of  Nigeria and her major 
oil and gas fields.

Figure 1: Map of  Nigeria showing its major oil and gas fields
Source: Worldview, 2013

With more than 39 billion cubic meters of  natural gas 
produced in 2022 alone, Nigeria is the third-largest 
producer in Africa, making it a significant producer of  
natural gas (Galal, 2023). Also, research from Enerdata 
(2023) shows that as of  the first quarter of  2023, 
Nigeria’s proven crude oil reserves are projected to be 
close to 40 billion barrels. Therefore, Nigeria’s huge 
natural gas reserves make the country an important 
player in the energy transition era, considering that 
natural gas has been determined as a vital energy source 
that will substitute coal and crude oil, before renewable 
energy systems become more affordable and widespread 
(Werner & Lazaro, 2023).

MATERIALS AND METHODS
The study focused on the Nigerian oil and gas industry in 
an era of  energy transition, by analysing the activities of  
TotalEnergies’ in Nigeria. Data collection for the study 
involved an exploratory research design, where secondary 
data from existing literature on energy transition in the oil 
and gas sector was analyzed. In doing this, the main themes 
of  the study focus on the Nigerian oil and gas industry in 
an era of  energy transition, were applied. Furthermore, 
the exploratory approach used was streamlined towards 
analyzing the activities of  TotalEnergies in Nigeria. 

According to Olawale et al. (2023), an exploratory research 
design is applicable when the intentions are to examine a 
problem that has not been well-theorized; the exploration 
here looks at shedding new light on the research problem 
for a better understanding of  the issues therein. Since the 
dynamics in the oil and gas sector in Nigeria during an 
era of  energy transition are not very clear, an exploratory 
research design adopted for the present study seems 
appropriate. The exploratory research approach focused 
on three main areas: (1) the complexities of  interests 
during IOCs’ operations in Nigeria, (2) challenges to 
energy transition in Nigeria’s oil and gas sector, and (3) 
strategies for Nigerian IOCs during the energy transition.
Covering about 9% of  Nigeria’s oil and gas sectoral 
goings-on, TotalEnergies EP Nigeria Limited (TEPNG) 
is a critical stakeholder in oil and gas exploration and 
marketing (Energy Focus Reports, 2021). TEPNG is 
a subsidiary of  TotalEnergies, a French International 
Oil Company (IOC) originally known as Compagnie 
française des pétroles (CFP), founded in 1924, which 
was later known as Total (Sassi, 2006). The company was 
rebranded, and its name was changed to ‘TotalEnergies’ 
in 2021 to reflect its intention and agenda to key into 
the global calls to move away from fossil fuels to more 
renewable and environmentally-friendly energy sources. 



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With the rebranding programme, TotalEnergies is now 
focusing on three key underlying factors: mitigating 
carbon emissions throughout all TotalEnergies’ 
operations by avoiding them in the first instance, 
modifying all TotalEnergies’ operations by enhancing 
energy efficiency by providing more funds for research, 
compensating the environment for harm caused by 
TotalEnergies’s previous operations, and promoting 
initiatives aimed at reducing the company’s carbon 
footprint (TotalEnergies SE, 2022).  To position itself  
as a significant player in the supply of  renewable energy 
in the years to come, TotalEnergies is broadening its 
operations in Nigeria in line with these objectives. Even 

though these programs are very plausible, the actions 
of  TotalEnergies have not demonstrated that these 
programs will be fully implemented. For example, the 
company, while showing a facade that is more interested 
in fostering renewable energy and investing in natural 
gas as a transition fuel, the company fairly recently 
commenced offshore crude oil extraction activities 
in Amenam and Ikike, both located inside Nigeria’s 
Oil Mining Licence (OML) 99 region. According to 
Offshore Reports (2022), the Amenam and Ikike oil 
fields will produce roughly 60,000 barrels of  crude 
oil per day. Figure 2 shows assets and oil mining fields 
operated by TotalEnergies as May 2023.

Figure 2: Assets and Oil fields operated by TotalEnergies in Nigeria 
Source: World Oil, 2023

RESULTS AND DISCUSSION
Nigeria’s oil and gas exploration efforts have been 
marked by a great deal of  estrangement between host 
communities in the Niger-Delta oil-rich region and other 
all other parties involved, particularly IOCs and members 
of  the country’s political elite. Years of  disregard and 
widespread nepotism in Nigeria’s oil and gas industry have 
left the indigenous people of  the host towns mentally and 
environmentally degraded. Agbonifo (2022) claims that 
oil and gas operations in the Niger Delta have exacerbated 
ethical decline to the point where poverty, prostitution, 
drug addiction, kidnappings, armed robberies, high 
unemployment, agitation among young people, and 
poverty are widespread. Some oil and gas producing 
communities are plagued with perennial oil spills and gas 
leaks, which cause significant environmental pollution 

and degradation. For instance, decades of  oil and gas 
exploration destroyed farmlands, waterbodies, fish stocks, 
and forest resources in Ogoniland in Rivers state, which 
rendered many residents and indigenes of  the area jobless 
and impoverished (Sam & Zabbey, 2018). Given that oil 
and gas exploration activities are known for requiring low 
manpower, the conditions of  people living in oil and gas 
producing communities are worsened by environmental 
pollution, which significantly debilitates their chances of  
making a decent living. In addition, alternative livelihood 
opportunities to cushion the negative economic effects 
of  oil and gas exploration on the affected populace have 
not been adequately provided by government authorities 
and other stakeholders. To make matters worse, efforts 
made towards remediating these polluted sites have been 
ineffective. According to Nwoma and Anyika (2024), 



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remediation activities aimed at mitigating oil-polluted 
domains in Ogoniland have been slow, with only 10 
polluted sites successfully remediated out of  over 300 
acres of  polluted land identified by the United Nations 
Environment Program (UNEP) report on environmental 
pollution in Ogoni. Furthermore, IOCs and the federal 
government have not provided the required funds despite 
launching a cleanup exercise since June 2016.  In light of  
this, Omeje (2013) reports that a large number of  locals 
who struggle to make ends meet due to the actions of  
IOCs such as TotalEnergies have moved to cities to avoid 
the difficulties they encounter in their hometowns.
In the same vein, geopolitical machinations have long 
hampered the operations of  IOCs like TotalEnergies 
in Nigeria, which in turn, distorts the equitability in 

sharing revenue from the country’s oil and gas activities. 
Nonetheless, Nigeria maintains a centralized structure 
of  governance where a few individuals hold power 
and decide the economic future of  the country. Omeje 
(2013) contends that the federal government of  Nigeria 
regulates the operations of  IOCs through a joint venture 
arrangement in which the government owns 60% of  the 
share and IOCs take the remaining 40%. Yet, because of  
widespread corruption and despotism, oil and gas revenue 
which the Nigerian government is supposed to apply in 
meeting the socio-economic, as well as environmental 
needs of  oil and gas host communities, has not been 
allotted appropriately. The table shows that Nigeria 
has made over 900 billion Naira (about 582 million US 
Dollars in 2025) as profit with the timeframe.

Table 1: Revenue from oil and gas resource extraction in Nigeria (2022 - 2023)
Description 2022 2023 Total
Domestic crude oil receipts 329.3 billion 58.4 billion 387.7 billion
Revenue from crude oil exports - 23.05 billion 23.05 billion
Federation crude oil profits - 94.9 billion 94.9 billion
NNPCL Dividend - 407 billion 407 billion
Revenue from gas exports - 6.2 billion 6.2 billion
Total 329.3 billion 589.6 billion 918.9 billion

Source: NEITI Report, 2024

The 2024 report of  the Nigeria extractive industry 
transparency initiative (NEITI) indicate that over 480 
million barrels of  crude oil were lifted in Nigeria in 2023, 
with about 7.5 million barrels of  crude stolen within 
the same period, while more than 22 billion dollars was 
realized as revenue from oil and gas sales in 2023 alone 
(Ochonu, 2024). Despite huge annual revenue from the 
oil and gas industry, Nigeria’s economy is still facing a lot 
of  hurdles concerning poverty reduction and employment 
creation. On the side of  government, millions of  Nigerian 
children are not in school while existing schools are not 
well-equipped; healthcare provision even at the primary 
level is below standard. IOCs operating in Nigeria are 
also complicit in the corrupt practices prevalent in the 
oil and gas sector. According to Akoji and Adetunji 
(2024), allegations have been made on bribes paid to 
government officials by parties representing the interests 
of  some IOCs, to favour their purchase or renewal of  
‘juicy’ oil prospecting and mining licences in different 
locations in the Niger delta region of  Nigeria. To make 
matters worse, many IOCs are perceived as subservient 
to government agents by collaborating with them in 
either under-reporting oil and gas extraction volumes 
or outrightly making away with huge quantities of  
extracted resources, a scenario generally termed as 
‘oil thief ’ (Ejiogu et al., 2019). Moreover, IOCs like 
TotalEnergies that operate within the Nigerian territory 
are owned by western countries who have been accused 
of  perpetrating and benefitting from the ‘resource curse’ 
paradox in African countries, hence they may not have 
the interest of  the host communities at heart (Oduyemi 

et al., 2021). Moreover, military coups in three former 
French colonies (Mali, Niger and Burkina Faso) within 
the last three years have created a negative perception 
of  French companies like TotalEnergies by many people 
in the West African region, who may perceive France 
as a neocolonial agent who is only here to perpetrate 
her economic and geopolitical interests in the region. 
According to Kohnert (2022), France has continued to 
exert economic control over Francophone countries in 
West Africa through monetary policy and central banking 
for these countries in Paris. Therefore, French IOCs like 
TotalEnergies may be seen as an agent positioned to 
implement the economic preponderance of  France over 
the West African sub-continent. According to Onuoha 
and Elegbede (2018), price mechanisms for accruable 
revenue from Nigeria’s oil and gas are completely out 
of  the country’s control, a clear demonstration of  the 
problem of  proprietary interests, especially concerning 
price determination. Consequently, regulating the price 
of  oil and gas resources is advantageous for Western 
countries that own the majority of  IOCs. The problem 
of  petrol-rich countries like Nigeria not being in full 
control of  oil and gas prices is made worse by the US 
Dollar being the base currency for determining oil and 
gas prices in the international market (Muhammad et al., 
2024). This, in turn, denigrates local currencies and may 
prevent the local economy from reaping the full financial 
rewards of  oil and gas exports (Shang & Hamori, 2021).
Instead of  fulfilling the promises made on repackaging 
their operations to focus more on renewable energy 
systems, TotalEnergies appears to be strategically and 



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intentionally increasing its crude oil output. Despite 
TotalEnergies’ statements that they will focus on the 
production of  biogas energy [which can help reduce 
Nigeria’s electricity deficit] from organic waste in 
Nigeria, the company has not yet started the process. 
Furthermore, plans for integrating its activities in 
Nigeria into this plan for the transition to clean energy 
sources have not moved forward significantly. However, 
TotalEnergies have also made some impact in reducing 
Greenhouse gas emissions, though not in Nigeria. For 
instance, the company’s participation in tree planting 
initiatives such as the Batéké Plateaux project in the 
Congo Republic, where more than 30 million trees are to 
be planted, is commendable. This is because these trees 
have the potential to absorb more than 450,000 tons of  
carbon dioxide, thereby reducing atmospheric GHGs 
(TotalEnergies SE, 2022).  In keeping with her goal and 
the company’s energy transition plan of  becoming one 
of  the top five renewable energy companies in the world, 
TotalEnergies is hoping to invest about $60 billion in 
several renewable energy projects across Nigeria within 
the next decade (Tena, 2021). In addition, the company 
plans to install solar systems in all 540 TotalEnergies’ 
service stations across Nigeria, with about 77 of  them 
already solarised (Asowata, 2021). However, only time 
will tell if  these laudable renewable energy programmes 
can be achieved and are not mere rhetoric.

Challenges to Energy Transition in Nigeria’s Oil 
and Gas Sector
Initiatives instituted by TotalEnergies to transform from 
GHGs to more renewable energy systems appear quite 
realistic; however, the company finds it challenging to 
completely achieve this goal for obvious reasons. Host 
communities in Nigerian oil-producing regions primarily 
rely on royalties from the government and projects from 
the Corporate Social Responsibilities (CSR) of  IOCs. 
Also, Nwankwo (2021) posits that because oil and gas 
operations utilize a minimal labour force, unlike other 
extractive industrial setups, residents might not be able 
to find fulfilling jobs in the industry. Low manpower 
requirement in the oil and gas industry is a serious issue 
that affects the welfare of  communities in oil and gas-
producing areas. Unlike agriculture, food processing, and 
manufacturing, among other sectors that require a lot 
of  workforce to create products, oil and gas exploration 
and extraction need fewer hands. According to Okwelum 
(2022), unemployment in Nigeria has remained as high 
as 33 percent, with the oil and gas industry accounting 
for less than 2 percent of  the Nigerian workforce. Also, 
the IOCs have not prioritised technological transfer for 
Nigerian employees despite efforts made by the Nigerian 
government to improve local content in the oil and gas 
sector. Currently, Nigeria has the Petroleum Technology 
Development Fund (PTDF) and the Nigerian Content 
Development and Monitoring Board (NCDMB), which 
were established to protect local interest, particularly 
concerning manpower development. However, there are 

no modalities to ensure that individuals trained under the 
PTDF are directly transferred to man strategic positions 
in the local operations of  IOCs like TotalEnergies in 
Nigeria. Etuk (2023) posits that many IOCs are reluctant 
to transfer technological know-how to Nigerian operators 
due to copyright issues and the protection of  intellectual 
property laws in their country of  origin. Also, some IOCs 
may feel that transferring technology to local manpower 
will negatively affect their relevance and profit margins 
from their Nigerian operations. These issues are further 
compounded by deficiencies in the work environment, 
which can lower overall manpower productivity in the 
oil and gas sector. Taiwo (2010), in evaluating how work 
environment affects productivity in the Nigerian oil 
and gas sector, identified that many oil and gas workers 
in Lagos, Nigeria, are not satisfied with the level of  
conduciveness of  their work environment and feel that 
improved welfare and remuneration will significantly 
enhance their productivity in the workplace. Even though 
many stakeholders are aware of  the dynamics in the global 
energy market, with respect to calls for energy transition 
from fossil fuels to renewables, there is still confusion 
as regards not only what needs to be done, but also the 
timeline needed for such a transition in Nigeria. According 
to Oruwari et al. (2024a), even though the global energy 
market is gradually divesting towards sustainable energy 
systems, Nigeria’s oil and gas is still in a quandary due to a 
lack of  cohesion among policymakers, investors and key 
energy players in deciding the best approach for Nigeria’s 
energy transition.
Due to the plethora of  issues affecting the operations 
of  Nigerian OICs, providing the required modalities to 
realise energy transition from fossil fuels to renewables 
in Nigeria is not readily available and implemented. 
To make matters worse, the Nigerian government 
has not provided the needed direction for IOCs like 
TotalEnergies to follow, in terms of  transitioning from 
fossil fuels to renewable energy systems. Whereas IOCs 
like TotalEnergies have a lot of  possibilities in the energy 
transition age to offer sustainable energy options, their 
integrity and sense of  purpose is weak because they are 
more focused on increasing the revenue they make from oil 
and gas.  To illustrate this stance, TotalEnergies’ increased 
intensification towards oil and gas exploration in Nigeria’s 
coastal waters, as opposed to diversifying to renewable 
energy (Oredola, 2021). In addition, many IOCs are more 
concerned with profit-making to satisfy shareholders, as 
opposed to making the necessary sacrifices needed for 
a successful energy transition in Nigeria. Even though 
TotalEnergies has been making promises about ending 
routine gas flaring in its oil platform for years, it is yet to 
do so, though it hopes to stop gas flaring by the end of  
2023 (Chukwu, 2023). Also, Nigerian government hopes to 
end gas flaring by 2035 through commercialisation of  gas 
flaring sites in more than 40 locations in the Niger Delta, 
by auctioning them to preferred bidders (Enerdata, 2023a).
Since the vast majority of  the local population is employed 
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oil and gas exploration by IOCs have severely degraded 
delicate ecosystems in Nigeria’s Niger Delta region by 
destroying arable land, contaminating streams and rivers, 
and annihilating plants and animals (Okotie et al., 2018).  
Additionally, because they do not directly benefit from 
these resources—which many view as a resource curse, 
endemic nepotism and dishonesty within Nigeria’s oil 
and sector have severely undermined moral values among 
indigenous people of  oil and gas producing communities 
in the Niger Delta. According to Babatunde et al. (2018), 
many Niger Delta youths involve in illegal petroleum 
refining, kidnapping, and vandalism of  oil and gas facilities 
because they have lost most reliable sources of  livelihood, 
as a result of  the resource curse from petroleum resource 
extraction. According to Felix (2024), ineffective policy 
direction for an energy transition era, prevalence of  oil 
spills and gas flaring, which cause environmental pollution, 
are the major challenges currently bedevilling Nigeria’s 
oil and gas sector. Therefore, it is not surprising that 
Nigeria’s inadequacy in natural gas storage infrastructure 
and limited penetration of  the local natural gas market are 

fundamental setbacks to Nigeria achieving a low-carbon 
future and transition to using mostly renewable energy 
systems (Oruwari et al., 2024b). In a similar spirit, IOCs 
would be reluctant to commit the necessary funds to 
switch Nigeria’s energy source from fossil fuels to clean 
energy sources.  This could be due to overbearingness 
of  Nigerian security agents in the oil-rich Niger Delta 
area, which dissuades foreign investment essential for 
achieving Nigeria’s energy transition (Akomolafe, 2024).

Strategies for Nigerian IOCs during an era of  
Energy Transition
IOCs must implement a workable plan that will enable them 
to sustain their economic sustainability and commercial 
relevance in the twenty-first century, considering the 
significance of  the energy transition to sustainable energy 
availability in the future. Therefore, Figure 1 outlines the 
suggested tactics that can be used. The essence of  these 
strategies is to provide a clear approach to the energy 
transition process without causing significant economic 
drawbacks on the Nigerian oil and gas sector.

Figure 3: Strategies for economic practicality during an era of  energy transition

In order to improve economic viability during the energy 
transition, four strategies have been recommended. In 
accordance with the vested interests of  all stakeholders 
affected by oil and gas activities, IOCS need to succeed 
in the energy transition era. All over the world, the use 
of  a ‘transition fuel’ like natural gas, with less pollution 
potential, has been introduced to bridge the gap, 
pending increased commercialisation of  renewable 
energy systems. In terms of  energy transition in Brazil, 

the government is pursuing a decarbonisation policy 
where more investments in renewable energy in the oil 
and gas sector, as well as the electricity sector (Werner 
& Lazaro, 2023).  According to Ume et al. (2024), the 
Nigerian government offers incentives such as renewable 
energy investment tax credits for investors in renewable 
energy projects, the Renewable Energy Development 
Fund (REDF), and concessionary import duty rates 
for renewable energy equipment for importers. These 



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incentives are among others. In order to make these 
incentives work, there is a need for a paradigm shift aimed 
at overhauling economic, social, environmental, cultural, 
political, and technological regulations, so as to sustain 
a viable energy transition in Nigeria. Consequently, the 
government’s strategies to reduce habitual gas flaring 
should be meticulously followed, so as to significantly 
reduce how it affects environmental health. In addition, 
the interests of  all stakeholders need to establish a 
supportive environment, develop and implement 
environmentally friendly guidelines, and secure additional 
funding for the growth of  sustainable energy systems 
like solar and wind power. Production of  fossil fuels is 
the responsibility of  IOCs like TotalEnergies, who are 
expected to discourage new oil exploration activities but 
focus more on gas production, given that natural gas 
is fundamental in the global energy transition (Galal, 
2023). According to Oruwari et al. (2024b), natural gas 
is an important transition fuel, which Nigeria currently 
has over 200 trillion cubic feet of  gas deposits; realizing 
the potentials of  natural gas as a transition fuel depends 
on provision of  adequate infrastructure and funding that 
not only improves local gas demand and supply, but all 
reduces Nigeria’s carbon footprint, thereby mitigating 
climate change. Also, IOCs are expected to make more 
investments in fulfilling their responsibilities towards 
improving development in host communities. According 
to Nigeria’s energy transition plan, it is also anticipated 
that IOCs will use their earnings to fund renewable energy 
projects (ETP Nigeria, 2022). Because sustainable energy 
systems require a lot of  labor and maintenance staff, it is 
anticipated that environmental pollution will be greatly 
reduced as they gradually replace fossil fuels as the world’s 
energy sources (Martins et al., 2019). Additionally, more 
job opportunities will be created. In a similar vein, it is 
anticipated that more job generation, the affordability of  
cleaner energy systems, and increased social responsibility 
programs will go a long way in promoting a better quality 
of  life for Nigerians in general and Niger Deltans in 
particular.

CONCLUSION
Nigeria has an essential part to play in the energy 
transition era because of  her enormous reserves of  
natural gas and crude oil. The world is calling for a shift 
away from Greenhouse gas-producing fossil fuels to 
more sustainable and cleaner energy sources because 
we are steadily running out of  fossil fuel deposits due 
to the exponential growth in human population. We are 
also facing serious negative environmental and human 
health effects, such as pollution, climate change, and the 
prevalence of  diseases and ailments linked to pollution, 
all of  which have a significant financial cost to the global 
economy. An important participant in Nigeria’s oil and 
gas industry, TotalEnergies is a significant IOC. Although 
TotalEnergies changed its name to diversify their activities 
to reduce their carbon footprint by focusing on sustainable 
energy systems per the global energy transition strategy, 

they have not invested heavily in renewable energy in 
Nigeria. Instead, the business has increased its pursuit 
of  petroleum deposits, which is a major contributor 
to GHGs. Therefore, it is clear that there is a disparity 
between host communities and other oil and gas industry 
participants. This has sustained geopolitical issues, as 
regards how the energy transition era will be affected by 
petroleum prices [especially natural gas] going forward. 
Injustice, cronyism, failure to fulfil social responsibility 
commitments, ongoing regular gas flaring, kidnappings 
and general insecurity have made it difficult for IOCs 
to live up to the demanding standards set by the energy 
transition phase. Thus, it has been suggested that a four-
pronged strategy be used, with political and regulatory 
actors fulfilling their responsibilities, IOCs concentrating 
on natural gas production instead of  crude oil, all 
stakeholders increasing their investments in sustainable 
energy sources, and ultimately bringing prosperity and 
sustainability to host communities. 
In light of  this, it is advised that IOCs put in greater 
effort to implement the renewable energy investment 
plan within the allotted period.  This will significantly 
increase the likelihood that sustainable energy systems 
will be given due consideration during an era of  global 
energy transition. Additionally, to reduce environmental 
contamination and enhance general environmental 
health, host communities’ concerns should be taken into 
account during all decision-making processes. Also, the 
government should create an enabling environment that 
will encourage more investors to come into Nigeria’s gas 
sector. These investments can focus on gas liquefaction 
to reduce gas flaring and building more gas pipeline 
infrastructure across Nigeria. Furthermore, more 
regulatory mechanisms should be instituted that mandate 
IOCs to compulsorily transfer modern technological 
know-how to Nigerian employees. This can be achieved by 
reviewing the joint venture agreements Nigeria has signed 
with IOCs and ensuring that local regulators like PTDF and 
NCDMB effectively enforce these regulatory directives.

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