ENERGY INFLATION AND NIGERIA'S GREEN PIVOT TO GLOBAL CLEAN ENERGY TARGETS

 Abuja - Nigeria June 2026. 

 

The hike in the price of electricity and petroleum in Nigeria is Lucid. It indeed is a profound paradox for a country with 2.12% of one of the world's proven oil reserves, with estimated holds of 37.5 billion barrels of oil reserves globally; ranking 15th position amongst the world's 40 major oil producing nations  and first major oil producer continentally (in Africa). According to data released by NUPRC (Nigerian Upstream Petroleum Regulatory Commission) on January 1st, 2026.In all these figures, Ironically the nation faces power shortages, petroleum Inflation, and hike in transportation costs. In supposed response to this Energy inflation; and in efforts to ease the soaring cost of transport caused by fuel inflation, the Federal government plans on rolling out 10,000 electric tricycles (Keke), by August 2026. Announced by Vice President Kashim Shettima. In addition, a massive fiscal policy was signed (‘Green tax Surcharge’) by the Minister of finance; ‘Wale Edun’, to take effect on July 1st, 2026. Taxing a 2 - 4% Green tax Surcharge on vehicles with high carbon emission, this aims to reduce pollution, hazardous releases from vehicles with large engines, e.g SUVs, high speed sport cars, fuel - guzzlers etc. Affecting mostly petrol head elites and exempting electronic vehicles (EVs), commercial vehicles (mass transit buses) and small cars with small engine sizes; specifically 2,000 cubic centimeters below. 

 

   Nigeria boasts of a total daily production of 1.53 million barrels and 1.7million condensates, calculating the figures, that's 1.53m × 365 days, which equates to 558 million oil barrels and 650 million condensates annually; with 180 million barrels in consumption a year. Consuming less than a fraction of what it generates internally and exports more. At current production rates, Nigeria has about 59 years of oil production left. According to NUPRC. To no avail are these natural gases and reserves, as civilians can say less on the ephemeral presence of basic electricity and power needs. As the strife for stand by electricity sweeps the nation, with some regions experiencing little to no availability of electricity, and the inflation and fluctuation in fuel price, further more contributing to the consistent hike in transportation prices in highly Urban regions across Nigeria. The price for PMS( Premium Motor Spirit) constantly fluctuates. Based on recent data from NBS and Dangote depot reports, the last known price of PMS as of June 2026 was 1,700 naira per litre, with import parity caping at 1,178 naira per litre and 1,850 - 1,900 retail pump price per litre as of early June. Previous fluctuations in price showed 1,420 naira per litre in February 2026 and then hiking up to 2,200 per litre as of April 2026, declining early June 2026 to its current price. With these consistent fluctuations, demands for more transparency in the energy/oil sector has been a continuous sung anthem with the civilians. Urging the Federal government for more accountability and competence in. Nigeria's energy affairs.

 

    It is evident that oil accounts for over 50% of Nigeria's revenue system contributing 3.92% to the nation's GDP. Although not totally, details show a high dependency on this natural gas for economic revenue. The constant use and burning of fossil fuels has become a mainstream debate, as it is highly argued that it destroys natural habitat, causing global warming and simultaneously dooming the planet to an unsustainable future. The bases of these arguments are found to be the unfortunate truth. Hence, efforts have been made to move to cleaner renewable energy to fit electricity demands globally. This, without causing more harm and contributing to the escalation of environmental and climatic changes. The effects of continuous dependency of natural gases by modern society worldwide, cause gripping effects to the climate, as temperatures rise across different regions globally. Data recorded by NASA (National Aeronautics and Space Administration), NOAA (National Oceanic and Atmospheric Administration) and the EU (European Union); (Copernicus climate service), reports an increase of CO2 released to the atmosphere by 1.1% in 2026.  Efforts are being made to contain these hazardous issues. One major effort is the target for clean renewable energy, aiming for sustainability while catering to energy requirements. In a recent video message by the UN; on June 16, 2026, at the (Global Vienna Summit), UN Secretary - GeneraL Antonio Guterres addressed the economic damage coming to nations with high dependency on oil for revenue, when the goal for cleaner energy is reached. With no more mining of fossil fuels in the coming future, part of Nigeria's economic revenue system will shudder. Quite obvious that Nigeria does not escape the list of over dependent countries on oil revenue. Antonio Guterres said: ‘Fossil fuels  are not just wrecking our planet - they are wrecking our economies too. leaving countries at the mercy of geopolitical turmoil and supply disruptions, and leaving families with higher energy costs, higher food prices and ever greater climate losses…The fossil- fuel age is falling . The renewables age is rising.’The efforts of this transition is evident in the move from the use of diesel powered autos  to hydro/electric powered autos. With EV companies, specifically Tesla and BYD automobiles leading fore-front, as well as reusable battery manufacturers, LG Solutions and CATL (Contemporary Amperex Technology Co. limited) supporting this shift with the creation of low cost long term reusable batteries for wind, solar and grid systems. Tech pioneers all pushing this autonomous clean energy transit agenda further,notably Elon Musk as he stated in 2017 during a fireside chart at ‘Nations Governor's Association Summer Meeting’ in Rhode Island. ‘ They (EVs) are going to grow exponentially … Probably in ten years, more than half of global vehicle production will be electric. 

 

      Although not fully there yet, the fact that electronic vehicles are becoming more mainstream can't be dismissed. What does this mean for Nigeria? As earlier stated in this column, the efforts being made by the Federal government. Would rolling out 10,000 electric tricycles for a nation with the population of over 240 million citizens be enough to solve the energy and petroleum crises? It is quite Lucid that the figures do not match numerically, simply insufficient. The lack of facilities needed; specifically electronic charging stations and good road networks across the nation remains a major bottleneck, raising questions on how these electric tricycles are going to operate effectively in Nigeria. This is a major concern from civilians. ‘ Iam in absolute doubt of this supposed electric transit shift the government is trying to push’, -noted Miss Deborah ( Ehimika) an undergraduate student of English and literary studies at the University of Delta State Agbor. ‘ With our bad roads and literal lack of constant electricity to even power these vehicles, the whole initiative feels completely detached from our reality and shows sheer executive incompetence’. A mirage? Or an actual effort to tackle energy inflation and stabilize transportation prices across the nation, while meeting global clean energy and sustainability targets by the Federal government of Nigeria. Is a factor Nigeria and its civilians will have to witness with the imminent shift from fossil fuels to clean renewable energy sources globally and if possible locally, (within Nigeria). The economical future of Nigeria sits on a knife's edge.

Written by:

Jude Edozie

(Department of English and Literary Studies, Delta State University, Abraka)