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The need to address the climate change crisis has led many countries like Nigeria to develop an Energy Transition Plan. The federal government launched the Nigeria Energy Transition Plan (the ‘ETP’) in 2022, a home-grown, data-backed, multipronged strategy designed to tackle energy poverty and the climate change crisis. The ETP aims to achieve net zero carbon emissions by 2060 in 5 key sectors: Power, Oil and Gas, Industry, Cooking, and Transportation.

The net-zero pathway of the ETP proposes to tackle environmental issues like gas flaring, the use of traditional firewood, kerosene and charcoal, and the use of diesel and petrol generators. Furthermore, the ETP aims to tackle social problems like long-term job loss due to the reduced global fossil-fuel demand, eradicate poverty by increasing the standard of living of about 100 million Nigerians and create jobs.

The ETP outlines significant social and environmental impacts. However, there are underlying concerns about achieving the goals of the ETP, which this article addresses below.

Analysing the Impacts of the ETP

There is a need to address the gaps and challenges to achieve carbon neutrality by 2060.

Firstly, the transition from fossil fuels leads to massive job losses in the oil and gas sector. The ETP aims to create up to 340,000 new jobs by 2030 and 840,000 by 2060. However, critics have questioned the feasibility of the ETP’s targets for job creation. One major obstacle to this goal is the lack of skilled workers in the renewable energy sector. The 2021 Nigeria Extractive Industries Transparency Initiative (NEITI)            report noted that a lack of skilled workers in the sector could impact employment in the oil and gas sector in the future. For example, one of the primary sources for job creation in the renewable sector is installing and maintaining a renewable energy system; this includes solar panel installations, wind turbine maintenance and hydroelectric plant operation. A significant gap exists in skilled workers such as engineers and technicians needed for these tasks. As a result, most of Nigeria’s renewables are imported because only a few companies manufacture and install renewable energy systems. Thus, investing in education, training, and skill development programs for the renewable workforce is essential to unlock the full job creation potential within the ETP.

Secondly, the impact on communities dependent on the fossil fuel industry can be damaging without adequate support and transition programs. The decline of the fossil fuel industry can also lead to economic decline in communities dependent on it, exacerbating the human development indices. A notable example is Appalachia, a region in the eastern United States known for its historical dependence on coal mining. The decline in coal production severely impacted the local businesses, mostly coal-related, the region’s population and caused significant budget shortfalls. As a result, Appalachia implemented interventions such as establishing alternative industries, supporting economic diversification and infrastructure development in the region to cushion the impacts of these challenges. This strategy can be replicated in the affected communities in Nigeria to ensure a smooth transition process. In addition, it is essential to properly engage affected communities to develop transition strategies and ensure they are equitable and responsive to community needs.

Another social challenge that can impede the actualisation of the ETP is the lack of sensitisation and awareness creation. 175 million people in Nigeria (87% of the population) lack access to clean cooking, resulting in significant quantity and length of life repercussions for mainly women and children. The ETP proposes to bring modern cooking alternatives to the general population through a decarbonisation strategy of moving from traditional firewood, charcoal and kerosene to liquefied petroleum gas (LPG), electric cookstoves and biogas. However, there is still a significant gap in awareness and sensitisation about the need to move to cleaner alternatives. To foster wider acceptance and adoption of cleaner cooking sources, intentional education and awareness campaigns targeted towards the population, particularly in the rural communities, are required to prevent potential anxiety around sub-optimal benefits of using LPG, electric cookstoves and biogas.

Conclusion

Nigeria’s ETP is a bold and ambitious plan with the potential to transform the country’s energy sector and economy. The effective execution of the plan hinges on taking into account the social and environmental repercussions, and mitigation strategies like public awareness, adequate funding, and policy coherence must be employed to address the potential negative impact and ensure a just and sustainable energy transition.

Liquefied Petroleum Gas (LPG) is a clean-burning, efficient, versatile, and portable energy source produced as a by-product of natural gas extraction and crude oil refining. In Nigeria today, LPG is popularly known and used as cooking gas. Other uses of LPG include industry, farming, commercial business, transportation, and domestic heating.

Increasing household use of LPG is paramount to meet the United Nation’s objective of universal access to clean cooking and heating solutions by 2030. In addition, access to clean cooking energy is particularly gendered because women are primarily responsible for cooking in virtually all cultures, especially in Nigeria. Therefore, a hike in LPG directly negatively impacts women and girls, forcing them to use other cheaper, harmful alternatives like traditional biomass fuels, which can affect their health, economic, political and social lives.

Recently, the price of LPG, once considered an affordable alternative, has taken an upward trajectory. A kilogram (kg) of LPG sells for ₦1200, a fifty percent increase from last week. Without government intervention, this hike creates a ripple effect on the livelihoods of women and girls in Nigeria.

Why is the LPG price increasing?

The lack of a unified pricing system for LPG is one factor that contributes to the price increase. According to the Petroleum Industry Act (PIA), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is responsible for setting a price framework for the gas sector to regulate the gas price in Nigeria. However, this absence creates uncertainties and fluctuations in the price of LPG. Other factors, such as limited infrastructure, high entry barriers, and market concentration among a few significant players, could also hinder effective competition. 

Furthermore, another reason for the hike of LPG is the rising international prices. Global supply and demand determine the price of LPG in Nigeria since LPG is a globally traded commodity. When international prices rise, it means that there is more demand for LPG than there is supply. In addition, Nigeria imports a significant portion of its LPG consumption, which means it is vulnerable to fluctuations in the foreign exchange rate. Also, the scarcity of forex and the devaluation of the Naira negatively affect the cost of importing LPG into Nigeria. Many other factors determine the price of LPG, such as the cost of transportation and the availability of vessels, the retailer’s location, and the commodity’s availability.

How are Women and Girls affected?

The impact of rising LPG prices on women is profound. One of the many ways the rising cost of LPG impacts women in Nigeria is by forcing them to consider other affordable harmful alternatives, like fossil fuels,   which are hazardous to their health. Unlike LPG, fossil fuel combustion releases harmful pollutants into the air, such as sulfur dioxide and nitrogen oxides. These pollutants can cause various health problems, including respiratory infections, heart disease, and cancer. Women and girls are particularly vulnerable to the health risks of fossil fuels for cooking. They are more likely to spend time indoors, exposed to higher cooking fumes. Beyond the exposure to pollutants, women suffer the physical burden of collecting, transporting, and processing biomass, leading to health impacts and accidents.

Another impact of the hike in LPG prices is the financial burden on women. Many women in Nigeria engage in small-scale businesses that are highly fuel-intensive; their viability and costs are affected by energy prices and availability. LPG saves time and improves productivity in many fuel and labour-intensive women enterprises. Since many of women’s informal sector activities depend on thermal energy and involve cooking and food processing, women entrepreneurs would suffer losses from a price increase of LPG. Furthermore, a hike in LPG increases household expenses, thereby forcing women, who are often responsible for managing household finances, to grapple with the pressure of stretching their limited budgets to accommodate the price increase. The economic constraints may force children, particularly girls, to drop out of school to help with domestic chores or to seek employment, further exacerbating the gender gap in education.

Finally, an increased LPG hinders Nigeria’s transition to cleaner energy sources, making it more challenging to reduce carbon emissions. The reliance on traditional fuels due to costly LPG can contribute to deforestation and environmental degradation.

What are the solutions?

Recognising and addressing the profound impact of rising LPG prices on women and girls is imperative. The following recommendations can help to mitigate the negative impact on women and girls.

Firstly, increasing the domestic production of LPG leads to a higher supply of LPG in the local market, causing the product price to become affordable. A greater availability solves the problem of scarcity-related price increases. Also, since Nigeria currently imports a large amount of LPG, increased domestic production reduces the dependence on costly importation and additional shipping and customs duties expenses. Domestic production also stimulates competition among suppliers and producers of LPG in Nigeria, leading to competitive consumer pricing. Another way to mitigate the impact of the increased price is by providing targeted interventions like subsidy schemes and financial assistance to vulnerable households to help them afford LPG.

In addition to the economic mitigation strategy, educating the public, especially women and girls, about the dangers of using harmful cooking fuels is paramount. Involving women in consumer education and awareness and lobbying for better regulation and enforcement can empower women with knowledge and control of LPG. Consumer education and awareness in LPG promotion should promote the idea while giving women the knowledge and tools to ensure that their cooking facilities and cylinders are installed properly, regularly inspected, and correctly filled.

Finally, investing in clean cooking technologies such as improved cookstoves and solar cooker reduces the dependence on traditional fuels and provide other cleaner alternatives that are climate-friendly and not hazardous to health.

Conclusion

In conclusion, the increased price of LPG is a complex issue with a significant impact on women and girls. It is crucial to raise awareness of this issue and to take action to mitigate its negative impacts. By providing financial assistance, investing in energy efficiency, promoting the use of renewable energy, and supporting social safety nets, we can help to ensure that everyone has access to affordable energy and that women and girls are not disproportionately affected by rising energy costs.