An Unconventional Clarion Call for a New Energy Order: Is Covid-19 a Blessing for the Nigerian Energy Sector?
| Published date | 01 August 2020 |
| Pages | 149-155 |
| Date | 01 August 2020 |
| DOI | 10.3366/gels.2020.0019 |
Nigeria is confronted with the devastating effect of the ravaging novel coronavirus pandemic, which was first noticed in Wuhan China in November 2019. Though the virus is foremost a health crisis leading to the death of hundreds of thousands of people worldwide, and hospitalisation of millions of people, the effect on the economy has equally been devastating. The restrictive and safety measures introduced by governments and advised by international organisations especially the World Health Organisation (WHO) have affected all facets of human existence, from social relations, interpersonal contacts, commerce and industry, agriculture, travels and hospitality, to the extent that the economy was adversely affected. The virus permeated and profoundly changed the world. By the end of March 2020, Nigeria was already experiencing the harsh realities of the pandemic. The virus came with a barrage of challenges and opportunities. It opened a new world of technology work tools, tech finance, business solutions, new product lines, conservation of resources, such that even green-house gas emission levels reduced which have now spurred new conversations as to how these levels can be maintained.
As a result of minimal diversification in the nation's sources of revenue, the economic impact is more acute. Nigeria depends on petroleum export for 83 per cent of her foreign exchange earnings. The harsh economic and social consequences include the inability to produce or export petroleum, as virtually all other nations were shut down with no production, unprecedented global health crisis and little or no demand for the nation's crude oil. The pandemic has provided a reality check on the sustainability of crude oil in revenue generation considering the fall in demand and price of oil. The government admitted the adverse economic impact of the pandemic in this regard and is exploring several avenues to mitigate this, including demanding advance payment of taxes from companies.
This paper will review the state of Nigeria's economy and the petroleum industry before COVID-19, the immediate and long-term impact of the coronavirus pandemic on the economy and the petroleum industry, the legislative and executive actions consequent upon the pandemic and then determine if the pandemic is a blessing for the energy sector. This study will also be lending a voice to the call to diversify the nation's energy mix in order to achieve transition to a new energy order that will improve the economy and aid in attaining a decarbonisation and clean energy.
The gloomy outlook for governance, development and economic hardship that was going to be experienced for the foreseeable future...
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