Assessment of Renewable Energy and its Role for Sustainable Development in Nigeria

Abstract

Energy diversification is a panacea for energy deficiency and an essential precursor for energy security and sustainability but has not received due attention in Nigeria. This study assessed renewable energy and its role for sustainable development, with a view to examining its renewable energy trends and providing strategic assessments for sustainable energy development. This is important because Nigeria has been battling energy deficiencies and its conventional energy sources pose high levels of risks to human health and the environment. To assess diversification index, the energy mix concentration index method (a modified version of the Herfindahl–Hirschman index) was used and the diversification trend (2000–2018) was examined using data from Our World in Data and Macro Trends, and compared to top African economies. Nigeria was one of the least diversified countries with an index of 0.74. Pearson’s correlation was also used to test the relationship between Nigeria’s gross domestic product and renewable energy transitions, and it showed no significant effect. The pattern of renewable energy trends in Nigeria reflects the multiple fuel-use hypothesis rather than the energy ladder and leapfrogging hypotheses. Policy makers in Nigeria should commit to increasing investments in renewable energy, create awareness and implement workable frameworks to facilitate energy diversification. This report highlights the need to pursue clean, renewable energy rather than dependence on harmful fossil fuels, in line with the attainment of the Nations’ sustainable development goals.