Title: Introduction to Decarbonisation in Nigeria: Path to Net Zero
Author- Amina Abubakar Umar (UA)
Decarbonisation is no longer a distant climate ambition. It is now shaping legal frameworks, regulatory expectations, and investment decisions across energy-producing jurisdictions. Nigeria, Africa’s largest oil producer, is beginning to confront how emissions reduction fits within an economy still heavily reliant on hydrocarbons.[1]
As global climate obligations, domestic environmental pressures, and sector-specific regulation converge, decarbonisation is becoming embedded in the governance of oil and gas operations. Its implications are no longer limited to policy statements; they are emerging in licensing, compliance, and long-term operational strategy.[2]
What Is Decarbonisation?
Decarbonisation refers to the reduction of greenhouse gas (GHG) emissions, particularly carbon dioxide and methane generated by economic and industrial activities. In energy-intensive sectors, it involves lowering emissions intensity through measures such as the reduction of routine gas flaring, improved energy efficiency, the adoption of cleaner fuels, and the deployment of emissions-reduction technologies.[3]
Importantly, decarbonisation does not imply an abrupt end to oil and gas production in Nigeria. Rather, it reflects a managed transition in which emissions are progressively reduced while energy security, fiscal stability, and economic development are preserved.[4]
Why Decarbonisation Matters for Nigeria
Nigeria’s economy remains heavily dependent on hydrocarbons, yet the country is also a party to international climate agreements that increasingly shape domestic policy and regulatory expectations. In line with the Paris Agreement of 2015, Nigeria submitted its Nationally Determined Contribution in 2015, updated it in 2021, and most recently submitted NDC 3.0 in September 2025, committing to reduce greenhouse gas emissions by 32% by 2035 and establish a clear pathway to net-zero by 2060. [5]
These commitments are no longer aspirational. They are now being embedded into Nigeria’s petroleum regulatory framework and operational practice. Priority actions already being implemented across the sector include the progressive elimination of routine gas flaring, systematic reductions in methane and fugitive emissions from upstream operations, and the expanded utilisation of gas as a transition fuel. Regulatory initiatives such as the Nigeria Gas Flare Commercialisation Programme (NGFCP), the Presidential CNG Initiative, and the NUPRC’s decarbonisation requirements tied to field development planning and licensing approvals demonstrate how international climate obligations are being translated into enforceable compliance and investment expectations for oil and gas operators.
Beyond international obligations, environmental impacts, particularly in oil-producing regions, have intensified public, regulatory, and investor scrutiny of oil and gas operations. These pressures have transformed emissions reduction from a voluntary sustainability initiative into a matter of law, policy, and risk management, with tangible implications for regulatory compliance, investment evaluation, and operational planning.[6]
The Legal Foundations of Decarbonisation in Nigeria
Nigeria’s Climate Change Act of 2021 establishes a statutory framework for achieving low-emissions and climate-resilient development. The Act mandates the integration of climate considerations into national planning, provides for carbon budgets, and creates institutional mechanisms for coordinated climate governance. [7]
Nigeria’s NDC 3.0 sets out updated mitigation priorities for the oil and gas sector, including the elimination of routine gas flaring and substantial reductions in methane emissions. Although the NDC itself is not legislation, it provides a framework for regulatory standards and guides sector-specific policy implementation. [8]
Complementing the NDC is Nigeria’s Energy Transition Plan, which establishes a long-term goal of net-zero emissions by 2060 and identifies oil and gas as a sector requiring gradual but measurable emissions reductions, with natural gas positioned as a transitional fuel.[9] The Petroleum Industry Act of 2021 further reinforces sustainability and environmental management as important regulatory objectives, providing a statutory foundation within which decarbonisation initiatives and emissions reduction strategies are increasingly pursued.[10]
What This Means for the Oil & Gas Sector
Decarbonisation is now a material issue for Nigeria’s oil and gas operators, shaping regulatory compliance, investment decisions, and operational planning. Environmental approvals, licensing, and operational permits are progressively incorporating emissions-related considerations.[11] Companies are expected to align operations with national mitigation priorities, such as reducing routine gas flaring and curbing methane leakage. This regulatory focus reflects operational realities on the ground. According to the World Bank’s 2025 Global Gas Flaring Tracker Report, Nigeria recorded a significant increase in gas flaring in 2024, ranking among the countries with the largest year-on-year rises globally, at a time when worldwide flaring reached its highest level since 2007. Nigeria’s performance relative to peer producers underscores both the scale of the challenge and the commercial opportunity for operators to deploy gas utilisation, emissions management, and efficiency solutions as part of Nigeria’s pathway to net-zero.[12]
Investors and lenders are also factoring carbon exposure and climate risk into their due-diligence processes, evaluating projects not only for financial viability but also for alignment with Nigeria’s decarbonisation objectives and climate commitments. [13]
Operationally, the transition requires the adoption of cleaner fuels, emissions-reduction technologies, and energy efficiency measures. Regulatory authorities, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), have begun to introduce decarbonisation reporting tools for upstream operations, signalling that emissions performance will increasingly influence regulatory assessments and approvals.[14]
Why This Matters for Legal Practitioners
For lawyers advising clients in Nigeria’s energy sector, decarbonisation is emerging as a cross-cutting issue with implications across multiple practice areas. It intersects with environmental and regulatory compliance, influencing licensing, permitting, and reporting obligations. Understanding the legal and policy basis of decarbonisation allows practitioners to anticipate regulatory changes, structure transactions effectively, and support clients navigating an evolving compliance landscape, ensuring both legal and commercial resilience in a decarbonising economy.[15]
Conclusion
Decarbonisation in Nigeria is no longer a distant or purely technical concept. Anchored in statute, reinforced by national policy, and increasingly reflected in regulatory practice, it is becoming a practical consideration for the oil and gas sector. For businesses and legal professionals alike, the starting point is not mastery of complex climate technologies but a clear understanding of what decarbonisation means, why it matters, and how Nigeria’s legal and policy framework is shaping operational and commercial realities. A proactive approach to emissions reduction, regulatory compliance, and strategic planning will be essential as the country navigates its energy transition toward a low-carbon and sustainable future.
[1] BP, Statistical Review of World Energy 2023 (BP 2023).
[2] International Energy Agency, World Energy Outlook 2023 (IEA 2023).
[3] Intergovernmental Panel on Climate Change (IPCC), AR6 Working Group III Report (2022).
[4] Federal Government of Nigeria, Nigeria Energy Transition Plan (2022).
[5] Federal Republic of Nigeria, Third Nationally Determined Contribution (NDC 3.0) (UNFCCC Submission, September 2025); Paris Agreement 2015.
[6] UNEP, Environmental Assessment of Ogoniland (2011).
[7] Climate Change Act 2021, ss 1–6.
[8] Federal Ministry of Environment, Nigeria NDC Implementation Framework (2024).
[9] Federal Government of Nigeria, Energy Transition Plan (2022).
[10] Petroleum Industry Act 2021, ss 2, 104–108.
[11] Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Upstream Petroleum Decarbonisation Template(effective 2025).
[12] World Bank, Global Gas Flaring Tracker Report 2025 (July 2025), https://www.worldbank.org/en/programs/gasflaringreduction/publication/2025-global-gas-flaring-tracker-report
[13] World Bank, Climate Risk and Investment in Energy Markets (2022).
[14] NUPRC, Gas Flaring, Venting and Methane Regulations (2023); NUPRC Decarbonisation Reporting Framework.
[15] International Bar Association, Climate Change and the Legal Profession (2022).
