Impact of Nigeria’s Energy Crisis and Global Climate Change Policies on Citizen Welfare

Abstract

Energy access is a key factor in economic development and social welfare, especially in developing countries like Nigeria, where energy poverty is widespread. Despite being Africa’s largest economy, Nigeria faces ongoing energy challenges, including unreliable supply,
inadequate infrastructure, and limited access, with over 85 million people lacking electricity. These energy deficiencies negatively affect productivity, healthcare, education, and overall citizen welfare. At the same time, Nigeria is committed to global climate goals, such as the Paris Agreement, which requires reducing greenhouse gas emissions through a transition to renewable energy. This balancing act between expanding energy access and meeting climate commitments presents a significant challenge. This study evaluates the impact of Nigeria’s energy crisis and climate policies on citizen welfare using secondary data from 1986 to 2023. Econometric analysis reveals that while energy shortages severely limit welfare outcomes, climate policies, if not carefully managed, could increase socio-economic inequalities. The study recommends expanding investments in renewable energy, upgrading infrastructure, promoting energy efficiency, and adopting off-grid solutions to improve energy access. Additionally, policies must integrate climate objectives with socio-economic development to prevent the further marginalization of vulnerable populations. Strengthening international collaboration and accessing climate finance are crucial to supporting Nigeria’s energy transition.