However, Nigeria is also a member of the Organization of the Petroleum Exporting Countries (OPEC)[7] and is frequently subject to production quotas.
It is the continent's most prolific oil-producing country, which, along with Libya, accounts for two-thirds of Africa's crude oil reserves.
"[10] There was a need for the country to scale up sustainable investment due to the destabilization of oil prices as a result of geopolitical risks and energy transition.
However, heavy security challenges in the Niger Delta coupled with persistent crude theft on onshore pipeline systems have steadily pushed IOCs out of onshore areas, leaving place for Nigerian independents to take over critical oil & gas assets.
Such divestments by IOCs have allowed the rise of several Nigerian Exploration and Production (E&P) companies who are now well-established players in the Niger Delta, including Seplat Energy, Oando (Owned by Adewale Tinubu), Amni International, Conoil, First E&P, ND Western, Neconde Energy, First Hydrocarbons Nigeria and many more.
[19] Of most immediate concern in December 2011, community members at Nisisioken Ogale are drinking water contaminated with benzene, a known carcinogen, at level over 900 times above the WHO guideline.
Communities in the Niger Delta frequently had no access to vital information about the impact of the oil industry on their lives.
[28] Representatives of Anglo-Dutch oil giant Shell are appearing in a Dutch civil court to face accusations of polluting Nigerian villages in 2012.
[29] The UNEP report (2011) concludes that pollution of soil by petroleum hydrocarbons in Ogoniland is extensive inland areas, sediments and swampland.
[35] Coal is a fossil fuel and the remnant affected by prehistoric vegetation originally accumulated in swamps and peat bogs.
This implies Nigeria has about 1,961 years of Coal left at current consumption levels and excluding unproven reserves.
The gas originates in the Niger Delta area[44] before it is injecting into the Escravos-Lagos Pipeline System (ELPS), whose construction and installation started on October 15, 2011.
[45] A number of major industrial users utilize this gas in captive power plants such as Guinness's Ogba and Benin breweries.
[54] Uranium exploration in Nigeria, started in 1973 and has been recorded in six States, which include: Cross River, Adamawa, Taraba, Plateau, Bauchi and Kano until date.
Presently, findings have shown that the deposit size and potential of uranium in Nigeria are still not sufficient to encourage resource drilling and feasibility studies.
[55] Since 2004 Nigeria has a Chinese-origin research reactor at Ahmadu Bello University, and has sought the support of the International Atomic Energy Agency to develop plans for up to 4,000 MWe of nuclear capacity by 2027 according to the National Program for the Deployment of Nuclear Power for Generation of Electricity.
On 27 July 2007 Nigeria's President Umaru Yar'Adua has urged the country to embrace nuclear power in order to meet its growing energy needs.
Together the available capacity of these plants as of the second quarter of 2021 (2021/Q2) stands at 7,771 MW with a total of one hundred and forty-two (142) turbine units.
[66] Developments in solar and wind power are gradually increasing with the discovering of their high potentials and benefits for Nigeria's environment and society.
[70] Currently, Nigeria generates a small amount of energy from renewable sources such as hydropower, solar, wind and biomass.
[73][74] Low Energy Designs, a firm from the United Kingdom, was contracted to build solar powered street lights across Nigeria.
[76][77] This project was in partnership with USAID, private donors, government agencies, financial institutions and non-governmental organizations.
[76] The goal of the project was to build connections to 2.5 MW of power through off-grid and grid-connected sources, which will reduce carbon dioxide emissions by 4.5 million metric tons.
[80] Nigeria has secured financial support from Chinese lenders to start construction on their hydroelectric plant in Mambilla.
Nigeria Electrification Project (NEP) is a Federal Government initiative that is private sector driven and seeks to provide electricity access to households, micro, small and medium enterprises in off-grid communities across the country through renewable power sources.
[84] NEP is being implemented by the Rural Electrification Agency (REA) in collaboration with the World Bank, AfDB, and other partners.
Following the COVID-19 pandemic, the Rural Electrification Agency sought to improve healthcare service delivery via the deployment of off-grid solar systems under the project.
Solar thermal energy has been utilized for decades in processes for cooking, food preservation, and agriculture.
Furthermore, solar power would provide a reliable and stable source of energy in both urban and other locations and could alleviate the resources-conflict associated with oil.
[89] Initiatives such as Nigeria's National Renewable Energy Plan are beginning to set forth goals in wind turbine implementation.