ABSTRACT
Energy is a fundamental necessity for the growth of national economy, as it aids production, distribution and consumption of goods and services which forms every economy. In Nigeria, there is heavy reliance on fossil fuel, such as crude oil, natural gas and coal to generate power, hence development thus far can be attributed to the availability and usage of these fossil fuels. However, it may seem that the end of fossil fuels as a major source of energy is gradually coming near, this is as a result of the awakening for the need to ensure sustainable development of environment and its component, hence, a transition from the usage of fossil fuels to renewable energy sources such as hydro, solar, biomass, geothermal energy etc., as major sources of energy creation is being highly encouraged among countries of the World. The doctrinal research methodology was applied in the course of this study, as this paper gives brief history of the energy sector in Nigeria, the principles governing energy transition, the pros and cons of the usage of fossil fuels and renewable energy as sources of energy creation respectively, an examination of the regulations governing the energy industry in Nigeria. This paper seeks to understudy the preparedness of Nigeria in achieving the transition from fossil fuels to renewable energy source in comparison with other oil exporting countries like Algeria, Canada, Ghana, Norway, Russia and Saudi Arabia. In the course of this study, it was discovered that Nigeria is currently lagging behind in the transitioning process despite having regulations in place to effect a smooth and inclusive energy transition, and this can be attributed to the country’s over reliance on fossil fuel, technical and collection losses, the lack of infrastructure, and the lack of a fully cost reflective tariff which creates money making concerns for investors, and as such, this paper recommends the establishment of agencies taxed with the responsibility of ensuring the implementation of existing renewable energy regulations, creation of new regulations to further promote the transition and usage of renewable energy in Nigeria, renewable energy funding/financing agency, and developing appropriate drivers for the implementation of energy efficiency policies. Energy is a major driving force in any economy, including the Nigerian economy, the transition and use of renewable energy sources to boost energy production and supply would ensure the sustainable economic development of the country.
