The Consumption Fuel Subsidy is a Clog to Renewable Energy Development in Nigeria

Abstract

In 2022, the Nigerian government has earmarked $15.7 billion for fuel subsidies, a substantial portion of its projected $25 billion revenue for the year. This allocation raises concerns about the feasibility of financing renewable energy initiatives outlined in the Paris Agreement. The significant expenditure on fuel subsidies leaves limited resources for investments in renewable energy and critical social infrastructure such as education and healthcare. This article contends that Nigeria's fuel subsidy programme contradicts the objectives of the Paris Agreement, hindering the widespread adoption of renewable energy. To align with climate change targets set in the Paris Agreement, Nigeria must reduce its subsidy allocations, bolster support for renewable energy, and increase incentives for sustainable energy development at the national level.

Keywords: Fuel Subsidies, Paris Agreement, Nigeria, and Renewable Energy

DOI: 10.7176/JLPG/139-09

Publication date: January 31^st 2024