Nigeria is facing what the World Energy Council has termed an “energy trilemma” – the competing demands of energy security, affordability, and environmental sustainability.

As Nigeria continues to battle persistent energy challenges, expert are calling for a strategic shift towards renewable energy and natural gas to diversify the country’s energy mix and ease the nation's crippling dependence on fossil fuels.

Nigeria is facing what the World Energy Council has termed an “energy trilemma” – the competing demands of energy security, affordability, and environmental sustainability.

For Africa’s most populous nation, balancing these three priorities has proven elusive, with far-reaching consequences for its economy and population.

According to Ighoyota Lucky, a consultant energy economist and policy analyst, the country’s energy woes reached a critical point when crude oil production across the entire Niger Delta, and other production areas nationwide, dwindled to a mere 700,000 barrels per day.

 "This shortfall triggered a domino effect of economic instability, revenue loss, and reduced industrial output," Lucky said.

The overreliance on fossil fuels, coupled with outdated and inefficient energy practices, has also taken a toll on the environment. From oil spills and gas flaring to air pollution and deforestation, Nigeria’s ecological landscape is deteriorating, further threatening the country's sustainable development goals.

At the same time, millions of Nigerians remain in the dark. Energy poverty is especially acute in rural areas, where access to electricity is virtually nonexistent. Even in urban centers, unreliable power supply and rising tariffs have left households and businesses struggling to cope.

“Access to affordable and reliable energy is not just about comfort; it’s about economic opportunity, education, health, and overall social development,” said Lucky. “Without reform, the inequality gap will only continue to widen.”

Lucky argue that exploring alternative sources such as solar, wind, hydro, and natural gas could not only lower energy costs but also enhance sustainability and increase national energy security.

 However, achieving this requires a robust policy framework, significant investment in infrastructure, and political will.

For Nigeria, this balancing act is particularly difficult. Despite being Africa’s largest oil producer, the country suffers from persistent power outages, grid collapses, and fuel scarcity. 

“The country’s reliance on fossil fuels, outdated grid infrastructure, and insufficient policy coordination have created a fragile energy system,” he said.

“The consequences are far-reaching—from disrupting businesses and industries to affecting household energy access and economic stability.”

Nigeria’s population continues to grow, but access to reliable electricity remains limited, especially in rural areas.

 The national grid is frequently overwhelmed by gas shortages and operational failures. 

Meanwhile, insecurity in oil-producing regions—including pipeline vandalism and crude oil theft—continues to disrupt energy supply chains.

To address these challenges, government agencies, the Nigerian National Petroleum Company Limited (NNPC Ltd), international oil companies (IOCs), and local security outfits are ramping up efforts to secure energy infrastructure and stabilise the grid. 

Measures include investment in infrastructure upgrades, refining capacity expansion, and diversification of the energy mix to include renewables.

IOCs are playing a growing role in this effort. They are investing in local production, deploying cleaner technologies, and fostering partnerships with Nigerian authorities and communities.

These efforts aim to not only boost energy security but also ensure long-term affordability and environmental sustainability.

"Many Nigerians, especially in rural areas, lack access to electricity, and even those with access often face high electricity tariffs. Limited access to affordable energy limits economic opportunities, restricts social development, and exacerbates inequality," Lucky added.