IMPACT OF RENEWABLE ENERGY ON THE GAS INDUSTRY IN NIGERIA: AN APPRAISAL

Abstract

Nigeria’s energy transition presents a complex regulatory and economic challenge arising from the increasing deployment of renewable energy alongside the nation’s continued dependence on gas. This article examines the impacts of renewable energy development on Nigeria’s natural-gas industry, with particular emphasis on declining gas demand, revenue, investment, and funding. It appraises the legal and institutional framework governing the energy transition, including the Petroleum Industry Act, Climate Change Act, Electricity Act, National Renewable Energy and Energy Efficiency Policy, Renewable Energy Master Plan, and relevant regulatory institutions and instruments. The article argues that the increasing adoption of renewable energy, battery storage, and other renewable technologies is gradually altering consumer behaviour, electricity-generation choices, investment patterns, and the economic attractiveness of natural gas. The consequent reduction in gas utilisation may affect domestic consumption, exports, government revenue, and future investment in gas infrastructure. However, the article contends that the transition should not be conceived as an immediate replacement of natural gas with renewable energy, given Nigeria’s substantial gas resources, persistent electricity deficit, and industrial dependence on gas. Instead, Nigeria needs a legally regulated, economically viable transition that promotes renewable energy while retaining natural gas as a strategic transitional and balancing fuel. The article recommends a comprehensive Renewable Energy and Energy Efficiency Act, stronger institutional coordination, predictable investment incentives, effective environmental enforcement, and protection of affected workers and host communities. It concludes that a coordinated gas-and-renewables framework offers a more sustainable pathway for balancing energy security, economic development, environmental protection, and energy justice.