Oil-rich nations must turn fossil fuel wealth into sustainable energy — Expert

A professor of Energy and Environmental Economics at Pan-Atlantic University, Ekundayo Mesagan, has urged Nigeria and other oil-producing countries to transform their fossil fuel wealth into sustainable energy systems amid growing global pressure to reduce greenhouse gas emissions.

Mr Mesagan said such countries could channel fossil fuel revenues into financing renewable energy, developing green infrastructure, and adopting cleaner technologies instead of relying heavily on oil and gas for economic growth.

He made the recommendation during his inaugural lecture titled “Making Lemonade from Lemons: The Fossil Energy and Sustainability Puzzle” on 9 October, noting that oil-producing countries face the challenge of balancing the economic benefits of fossil fuels with the environmental consequences of their extraction and consumption.

“The topic of my lecture today is how we can make lemonade from lemons by navigating the dilemma between fossil energy and environmental sustainability,” Mr Mesagan said at the event.

His recommendations come as countries grapple with the pressure to minimise emissions under the 2015 Paris Agreement, which seeks to keep global warming well below 2 degrees Celsius above pre-industrial levels while pursuing efforts to limit the increase to 1.5 degrees Celsius.

Nigeria is a signatory to the agreement and has committed to achieving net-zero emissions by 2060, even as it continues to invest in its oil and gas industry to bolster economic growth and development.

Decades of oil exploration and production, particularly in the Niger Delta, have also raised concerns over environmental degradation and its impact on local communities, livelihoods and ecosystems.

Fossil fuels and climate change

Mr Mesagan said fossil fuels remain a key driver of greenhouse gas emissions, highlighting the difficulty of reconciling continued dependence on oil, gas and coal with global climate targets.

Global carbon dioxide emissions surged from about 22 billion tonnes in 1990 to approximately 39 billion tonnes in 2024, the professor observed, mirroring the continued challenge of moderating emissions despite international climate commitments.

According to him, the global shift to lower-carbon energy requires countries to cut back their reliance on fossil fuels while expanding renewable energy and investing in cleaner technologies.

His view of fossil fuels as “lemons” indicates that although fossil fuels offer considerable economic value and energy potential, their non-renewable nature and environmental consequences create long-term challenges.

He said the “lemonade” represents benefits like environmental sustainability through investment, innovation, and effective policymaking that fossil fuel wealth can provide.

Turning oil wealth into sustainable energy

The professor said capital investment in environmentally friendly technologies is a major way to reduce the pollution associated with fossil fuel production and consumption.

He urged Nigeria and other oil-rich developing countries to commit a portion of their oil revenues to building domestic capacity for renewable energy and green infrastructure rather than depending heavily on foreign countries.

He also called for greater investment in carbon capture, utilisation and storage, which involves capturing carbon dioxide emissions for storage or subsequent use in industrial processes.

According to him, the technology could help oil-producing countries cut emissions, strengthen their participation in carbon markets, and remain competitive as global climate policies tighten.

Mr Mesagan urged existing and proposed refineries in Nigeria to consider investing in carbon-capture technologies to reduce their environmental footprint.

He also expressed hope that the African Energy Bank, established by the African Petroleum Producers’ Organisation, will collaborate with the Africa Carbon Markets Initiative to advance carbon trading across the continent.

The don further advocated a diversified energy mix, urging oil-producing countries to invest oil revenues in solar, hydro and wind power while strengthening policies to support cleaner energy adoption.

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He said effective governance, stronger pollution-control laws and carbon pricing are also necessary to ensure that investments in technology and innovation deliver meaningful environmental benefits.

Looking ahead, Mr Mesagan identified climate finance, access to green energy, and climate vulnerability as areas that require further research.

He highlighted the role of carbon-capture technologies and carbon markets in Africa’s pursuit of net-zero emissions, alongside the integration of renewable energy into artificial intelligence infrastructure and the socioeconomic implications of energy storage and the energy transition.

He called for collaboration among policymakers, engineers, economists and environmental scientists to develop solutions that would enable oil-producing countries to maximise the economic benefits of their natural resources while reducing environmental damage.