World anti-corruption day: Why transparency and accountability are sustainability drivers in the petroleum sector

SOStainabilityWeekly

By Oke Epia, E-mail: sostainability01@gmail.com  | WhatsApp: +234 8034000706

Spotlight

On Tuesday, December 9, the world marked the 2025 International Anti-Corruption Day. While the theme focuses on uniting youths against corruption, the occasion brings to the fore the imperatives of transparency and accountability in the governance of key economic sectors like petroleum, which remains the mainstay of Nigeria’s economy. A vital sector riddled by a lack of transparency, accountability, and unbridled corruption constrains the ability of the country, and indeed, much of the international community, to achieve the Sustainable Development Goals (SDGs).

This is why the outcome of a recent stakeholders’ workshop on building ‘synergy for a transparent and accountable petroleum sector,’ held on in Abuja, calls for deep reflections. Convened by the Fiscal Responsibility Commission (FRC) in collaboration with the House of Representatives Committee on Petroleum Resources (upstream) and facilitated by OrderPaper, Nigeria’s foremost parliamentary monitoring organisation and policy think-tank with its signature commitment to legislative transparency, the workshop afforded participants the opportunity to identify gaps in the governance of the petroleum sector and recommend measures to plug them.

Setting the Stage: key participants and a policy brief

In the room were stakeholders whose roles, though different, intersect at the heart of petroleum governance. Lawmakers, regulators, civil society representatives, host community voices, industry operators, anti-corruption agencies, academics, journalists, and other organisations were brought together. Each entity came with its own perspective but participants shared a common concern that Nigeria’s petroleum sector is operating below potential, weakened by challenges that demand bold systemic reforms. The presence of sustainability advocates and climate-focused organisations like SOStainability revealed how petroleum governance must go beyond technical jargons and measurement metrics to embed environmental stewardship, community ownership, and long-term concerns for the climate. A key highlight of the workshop was the presentation of a policy brief produced by OrderPaper and the FRC which focused on petroleum sector governance and fiscal priorities for the 10th National Assembly. The document highlighted transparency and accountability gaps, especially around delayed and non-remittances of revenues into government coffers by entities like the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Nigeria National Petroleum Corporation Ltd (NNPCL), Oil and Gas Free Zones Authority (OGFZA), the Nigeria Content Development and Monitoring Board (NCDMB), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), among others. Data contained in the policy brief revealed that NNPCL last submitted its Annual Financial Statement (AFS) to the FRC, which is a legal and statutory responsibility, in 2018 and has a liability of N3,597,634,000,000 in the period between 2007 and 2018. Infractions like this are common to entities in the petroleum sector covered by the mandate of the FRC. The policy brief also  examined how legislative authority can be better deployed to shape transparency and ensure that petroleum revenues are properly tracked, reported, and utilised for the common good.

Insights from policy and technical presentations

The conversations drew attention to the painful but undeniable realities shaping the sector, emphasising a persistent inadequate adherence to, and sometimes utter disregard to, transparency and accountability principles and statutory provisions. FRC reports on operating surplus remittances and the annual audits of the oil and gas sector by the Nigeria Extractive Industries Transparency Initiative (NEITI) repeatedly reveal non-remittance of revenues from operators and regulators alike. This situation has bled Nigeria of billions of dollars annually – resources that could have been deployed for social services, security and welfare of citizens as outlined in the SDGs.

Subject matter experts such as Mr. Ademola Henry Adigun, Dr. Michael Uzoigwe, and Barr. Charles Abana unpacked various aspects of the Petroleum Industry Act (PIA) 2021, emphasising that while the Act represents one of Nigeria’s most significant regulatory overhauls, its full promise is yet to be realised. They discussed how the PIA’s fiscal, legal, and operational provisions were designed to solve structural problems including outdated governance systems, declining competitiveness, and opaque practices but progress has been hampered by gaps in transparency and accountability safeguards. The experts highlighted the importance of transparency provisions within the PIA, including contract disclosure requirements, beneficial ownership registers, and mandatory reporting systems. They also reflected on the limitations of the current implementation of the Host Community Development Trusts (HCDTs), which were created to reduce conflict and ensure communities benefit directly from petroleum resources. Relevant questions raised in relation to the HCDTs, include: if the monies given to the host communities are accounted for and whose responsibility it is to monitor the monies disbursed.

Drawing from the expert presentations, participants reflected on fiscal inefficiencies and how revenue leakages, inaccurate reporting, outdated laws, and poor data systems have eroded public trust and limited the country’s ability to benefit optimally from its hydrocarbon resources, which unfortunately, are not only finite but also facing increasing pressures of the global transition to renewable energy.

Focus on Host Community Development Trusts

The conversation around HCDTs was particularly significant. As mandated by the PIA, these trusts are meant to provide host communities with a structured and transparent means of receiving benefits from petroleum operations. They are designed to support development projects, reduce tensions, and create a sense of shared responsibility for protecting infrastructure. The workshop acknowledged that if effectively implemented, HCDTs could help address decades of grievances tied to environmental degradation, exclusion, and neglect.However, the lack of enforcement weakens community trust and undermines the spirit of the PIA. The workshop emphasised the need to build stronger accountability mechanisms to ensure that host communities receive what they are entitled to, and that funds set aside for community development are not mismanaged or diverted.

Sustainability and the evolving narrative of petroleum governance

A recurring theme throughout the workshop was sustainability, a concept increasingly shaping global discussions on energy governance. Nigeria’s petroleum sector must now adapt to a world that is moving toward cleaner energy sources and demanding stricter environmental and social performance from extractive industries. This is where the voice of organizations like SOStainability becomes essential. Their presence at the workshop signaled an understanding that petroleum governance is not an isolated topic but intertwined with environmental resilience, climate responsibility, economic diversification, and community well-being.

At a time when environmental, social, and governance (ESG) standards influence both global investment decisions and local community expectations, the sector can no longer rely on traditional operating models. The workshop highlighted the need to integrate environmental management systems into upstream operations as a core part of achieving long-term sector sustainability.

Nigeria stands at a pivotal point in its petroleum industry. Transparency and accountability are not bureaucratic concepts; they are essential for national stability, economic growth, and international competitiveness. The country cannot continue losing billions to corruption, theft and leakages, nor can it operate without clear, enforceable structures that protect both communities and the climate. For host communities, transparency means fair treatment, reduced conflict, and meaningful development. For investors, it means predictability, reduced operational risk, and a justification for long-term commitments. For the country at large, it means revenue security, economic resilience, and the ability to plan beyond oil. The communiqué issued at the end of the workshop revealed a shared recognition of these issues and that the long-term prosperity of Nigeria’s upstream petroleum sector depends on the collective commitment of all stakeholders. Policymakers must show courage in reforming outdated frameworks. Regulators must enforce compliance with consistency. Operators must embrace responsible and sustainable practices. Civil society must continue to shine a light on gaps and demand accountability. Communities must remain engaged and informed.

Trends and Threads

Energy Transition: The ABCs of renewable energy and what it means for Nigeria

The world is witnessing a profound shift in how energy is produced, distributed, and used. What began as a response to climate change is evolving into a full-blown transformation of economies, societies, and livelihoods. For many countries, industrialized and developing, oil producers and importers alike, the energy transition represents a chance to rethink old models, unlock new opportunities, and make energy more accessible, affordable, and sustainable. For a country like Nigeria, with abundant natural resources and millions still lacking modern energy access, the promise of this shift is enormous but so are the challenges. In this article, we explore what the energy transition really means globally, why renewables are rising, how policies are accelerating change, what this means for businesses and workers, and what obstacles remain especially in Nigeria’s context.

What the energy transition really means

At its heart, the energy transition refers to a global movement away from an energy system dominated by fossil fuels: coal, oil, and gas, toward a system powered by renewable sources such as solar, wind, hydro, and, increasingly, emerging clean technologies like energy storage and green hydrogen. This is not just a technical swap of fuels. It is a transformation in how societies think about energy as a foundation for sustainable growth, equitable development, and long-term resilience rather than short-term profit or export revenue.

The global drive toward an energy transition is shaped by two powerful and interconnected imperatives: climate science and energy equity. Together, these factors are redefining how nations think about energy, growth, and the future of the planet.

Climate science has established with overwhelming clarity that the continued reliance on fossil fuels is destabilizing the Earth’s climate system. Rising temperatures, intensifying extreme weather events, sea-level rise, and ecosystem losses underscore the urgent need to reduce greenhouse gas emissions. The energy sector, responsible for more than two-thirds of global emissions,stands at the center of this challenge. Transitioning into renewable energy sources such as solar, wind, and hydropower is therefore essential not only to slow global warming but also to stabilize economies and protect communities from escalating climate impacts.

Yet energy transition is not driven by environmental science alone. Energy equity and development form the second pillar of this global shift. Today, an estimated 600 million people in sub-Saharan Africa lack access to reliable electricity, a reality that constrains education, healthcare, economic participation, and human dignity. For these communities, the energy transition is not only about reducing emissions, it is about expanding opportunity. 

The rise of renewable energy technologies

Over the last decade and accelerating in recent years, renewable energy has moved from niche or experimental status to mainstream. The economics of renewables have shifted dramatically. According to a recent report by the International Renewable Energy Agency (IRENA), 91 percent of new utility-scale renewable power projects commissioned globally in 2024 produced electricity at a lower cost than the cheapest fossil-fuel alternatives. Solar photovoltaic (PV) power now commands a global average Levelized Cost of Electricity (LCOE) of roughly US$0.043 per kWh; and onshore wind stands at about US$0.034 per kWh.

In addition to falling generation costs, technological advances are improving the reliability and flexibility of clean energy. Battery energy storage systems (BESS), once prohibitively expensive are becoming more affordable- this allows solar and wind power to be stored when generated and dispatched when needed, mitigating intermittency challenges. Emerging technologies such as green hydrogen (produced from renewable electricity) hold the promise of decarbonising sectors that are hard to electrify directly: heavy industry, long-haul transport, and high-temperature processes.

This rapid cost decline and diversification of clean energy technologies have created what many now call a “tipping point.” Clean energy is not just environmentally desirable, but it is often the more economically rational choice. As more countries and businesses adopt renewables, economies of scale, innovation, and improved supply chains feed a self-reinforcing cycle, driving further deployment.

 How policies are speeding the shift

No single country or company can solve the climate crisis or energy poverty alone. That’s why global cooperation policies matter. Over the past years, international agreement, climate science, and global momentum have shaped how nations plan for energy, often committing to reduce emission, expand clean energy, and ensure fair access. Much of this push ties back to agreements like the Paris Agreement, where countries pledged to limit global warming and reduce greenhouse gas emissions. Many nations have since developed national climate plans to align with those commitments.

A landmark moment was the High-level Dialogue on Energy (HLDE) convened by the United Nations in September 2021 in New York. At the Dialogue, more than 130 heads of state, ministers, international organizations, CEOs committed to a roadmap for universal energy access and accelerated decarbonization, backed by over US$400 billion in pledged investments and “energy compacts.” The HLDE reaffirmed that achieving universal access to modern, sustainable energy (as envisioned under Sustainable Development Goal 7) and shifting to low-carbon energy must go hand-in-hand. It urged no new coal plants, rapid scaling of renewables, energy efficiency, and mobilization of predictable finance especially for developing countries. 

At the national level, countries are embracing tailored transition strategies. For Nigeria, that strategy is the Nigeria Energy Transition Plan (ETP), launched in August 2022 and approved by the federal government. The ETP sets a pathway for Nigeria to achieve net-zero emissions by 2060, while tackling energy poverty and promoting inclusive, equitable growth. Under the ETP, Nigeria aims to transform five key sectors: power, cooking, transport, oil & gas, and industry which together account for about 65 percent of the country’s greenhouse gas emissions. For the power sector in particular, the plan sets ambitious targets: by 2060, total installed power capacity should reach 277 GW, powered significantly by renewables and energy-efficient systems. The ETP envisions phasing out many diesel-based decentralised generators, boosting renewables, expanding decentralised and off-grid solutions, and facilitating private-sector participation through incentives and reforms.

The policy also stresses the need for local manufacturing and job creation, technical training, and skill development especially for deploying solar panels, inverters, solar home systems, and even electric vehicles (EVs). In short: the global climate agenda, led by institutions like the UN, and national strategies like Nigeria’s ETP, are pushing the energy transition from ambition to action.

What the energy transition means for businesses and workers

The energy transition is not just about environmental or social goals; it is reshaping a whole-of-economy landscape. For businesses either large, medium, and small and for workers, the shift presents both opportunities and disruptions.

On the opportunity side, clean energy often means lower and more stable energy costs, especially as renewables outcompete fossil fuels. For businesses operating in energy-intensive sectors, this translates into improved profitability, less vulnerability to volatile fuel prices, and reduced exposure to carbon-related risks. The falling costs of renewables, particularly solar and wind, make them attractive investments. 

In Nigeria, the ETP explicitly seeks to mobilize private sector involvement; the plan outlines significant potential for investment in off-grid solutions (mini-grids, solar home systems), utility-scale renewable projects, clean cooking technologies, EV deployment, and downstream industries such as manufacturing, installation, maintenance, and services. More broadly, it offers a route for economic diversification, reducing dependence on crude oil revenues, and opening new sectors that can absorb labor, stimulate entrepreneurship, and generate growth.

For workers, the transition could bring new kinds of employment: manufacturing and installing solar panels, building and operating mini-grids, maintaining renewable-energy infrastructure, retrofitting buildings for energy efficiency, and supporting new supply chains. Especially in developing economies, decentralized and off-grid solutions (solar home systems, mini-grids) can empower rural entrepreneurs, support small businesses, stimulate local economies and offer new livelihoods in places previously underserved. At the same time, traditional sectors like fossil-fuel extraction, diesel-generator maintenance, conventional power utilities, industries dependent on fossil-fuel energy may face shrinking demand, stranded assets, and job losses if they fail to adapt. For a fossil-fuel producing country like Nigeria, this risk is real. The ETP recognizes this and calls for a “just transition” strategy to manage job displacement, retrain workers, and channel investment into new green sectors.

For small businesses and the private sector, clean energy offers a chance to cut electricity costs, reduce dependence on unpredictable grid supply or costly generators, and improve competitiveness. For example, companies could adopt solar-plus-storage or other decentralised power solutions to guarantee reliable energy supply even where the grid is weak or unreliable.

 Key challenges slowing the energy transition 

Despite the momentum, the path towards energy transition especially in a country like Nigeria faces major hurdles.

First, energy poverty remains massive. According to the ETP data, about 61 percent of Nigeria’s population had access to electricity in 2023, leaving roughly 86.8 million people without access. Even among those connected to the grid, many experience unreliable supply, prompting dependence on diesel or petrol generators, and many more lack access to clean cooking and modern energy services.

Second, shifting from a fossil-fuel-based system to a renewable one requires massive investment. The updated ETP for Nigeria estimates that achieving net-zero by 2060 will need substantial capital and while the plan envisages private-sector participation, securing that funding is not easy. 

Third, there are infrastructure and technical capacity gaps. Transitioning to renewables means upgrading grid infrastructure, deploying energy storage, building mini-grids, installing solar systems, establishing supply chains for equipment, all of which require skilled labour, reliable logistics, and effective regulation. A technical analysis of the ETP warns that the success of Nigeria’s net-zero vision depends heavily on these factors: grid upgrades, energy storage deployment, and adoption of “net-zero energy systems.” 

Fourth, policy coherence and institutional coordination are necessary but not guaranteed. The ETP encompasses multiple sectors: power, transport, cooking, industry, oil & gas and involves many ministries, agencies, and stakeholders. Without strong governance, transparent regulation, incentives for private investors, and consistent implementation, the risk is that the plan remains on paper. Analysts have raised concerns that overlapping interests (especially given Nigeria’s history as an oil exporter) and inertia may slow progress. 

Fifth, financing and affordability remain hurdles, particularly for off-grid, decentralized systems (mini-grids, solar home systems) that serve rural areas. For these solutions to scale, there must be accessible financing, subsidies or grants, and business models that make sense for low-income households and small businesses. Without them, energy poverty may persist despite overall capacity growth.

Finally, there is resistance to change. For decades, Nigeria’s economy and many of its institutions have been built around oil and gas. Transitioning to a green economy demands rethinking that foundation politically, economically, socially. This includes managing job losses, shifting public revenue sources, and recalibrating national economic strategy.

Yet, these challenges are not insurmountable. Overcoming them will require commitment, coordination, smart policy, and investment but also vision.