The Socio-Political and Economic Impact of Energy Transition in Nigeria
Keywords:
Sociopolitical Variables, Economic Variables, Renewable Energy Transition, Sociopolitical Environment RelianceAbstract
This study examines the relationship between sociopolitical and economic effects on Nigeria's energy transition. In particular, it looked at the connection between sociopolitical factors and the effectiveness of Nigeria's shift to renewable energy as well as the connection between economic factors and the effectiveness of Nigeria’s shift to renewable energy. The study attempts to answer the questions: What is the relationship between the sociopolitical variables and the success of the renewable energy transition in Nigeria? To what extent do economic variables affect the success of renewable energy transition in Nigeria? The study adopted a quantitative descriptive design, and a sample size of 600 respondents was selected from energy sector organisations (PHED, NNPC, NDDC, GPPA) and commercial renewable energy companies in Port Harcourt; 520 were returned and sampled using purposive sampling procedures. The study used descriptive statistical tools such as tables, charts, and basic percentages to analyse the data collected through the use of the Statistical Package for the Social Sciences (SPSS). The Pearson Product Moment Correlation (PPMC) was used to evaluate the hypothesis at a 0.05 significance level. According to the analysed results, the study found that Nigeria's renewable energy transition has been impacted by sociopolitical factors such as a high level of corruption, an excessive reliance on crude oil, an unfavourable business environment, poor national orientation towards renewable energy, negative political power struggles, and the influence of fuel energy generating set importers. Similarly, the success of Nigeria's transition to renewable energy is greatly impacted by economic factors like high capital costs, the oil economy and energy subsidy regime, inconsistent and poor policy implementation, inadequate public funding, private sector concessionary scepticism, and exchange rate volatility. The study concluded that sociopolitical and economic factors affect Nigeria's energy transformation. The study recommends that in order to properly coordinate the nation's sociopolitical environment, authorities and citizens need to adhere to or adopt a suitable mindset about renewable energy. The Nigerian economy should consciously diversify in order to ease its overreliance on petroleum, which has been the scourge of our country's progress.
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