A group, the Nigerian Association for Energy Economics (NAEE) has blamed the country’s resource- curse syndrome on weak institutions and poor governance that have led to the inability of the country to transform her abundant human and natural resources endowment for the good of all.
The group’s President, Dr. Hassan Mahmud, who spoke in Abuja, Nigeria’s political capital, during the 17th Annual International Conference of NAEE, in collaboration with the International Association for Energy Economics (IAEE), United States (U.S.), said developing countries can not transform their economies despite their huge energy potential due to weak institutional structures.
“We must admit, particularly for developing and emerging economies, that a key factors that determines our ability to transform our abundant energy potentials (both fossil fuel and renewables) to economic growth and development, and improved standard of living our citizens, is our governance structure and institutional arrangements.
“Abundant evidences in the literature have established that weak institutions and poor governance have led to the inability of some countries to transform their abundant human capital and natural resources endowment, to positive economic and social outcomes, including industrialization and political stability – the Resource- Curse Syndrome,” he said.
The theme of the conference is: “The Energy, Economy, and Environment Nexus: Imperative for Good Governance and Sustainable Development” – centering on exploring the effective linkage of these three key corridors (Energy, Economy and Environment), through good governance (rule of law, transparency and accountability), to maximize the benefits of our energy potentials for economic development and industrialization.
Dr Mahmud said in the direction of evolving good governance in energy development and uses in Nigeria, a major achievement was recorded in the establishment of a robust and country- specific legal instrument to facilitate the transition and transformation.
He said the Petroleum Industry Act (PIA) of 2022 marked a significant milestone in addressing some major structural, institutional and bureaucratic deficiencies in Nigeria’s energy sector.
He added that it prioritised the reforms to sector, streamlining the regulatory framework, encouraging investment, and improving transparency. These reforms, according to him, come at a critical time, as the country sought to diversify its energy mix, moving away from the heavy reliance on oil and gas to incorporate renewable energy sources, including solar, wind, and hydroelectric.
Dr Mahmud said the PIA was meant to foster a more competitive and dynamic energy market, positioning Nigeria as a regional leader in energy development with particular emphasis on creating more local content and boosting indigenous capacity within the energy sector.
He stressed the need to harness the capabilities of indigenous professionals and firms towards ensuring that the energy sector remains globally competitive while fostering economic emancipation and poverty-reducing growth.
Dr Mahmud said: “However, regardless of the innovative and comprehensive pillars of the PIA, evolving a matching institutional and political arrangements to facilitate the implementation of the legal instrument to fast-track the transition from Nigeria energy sector potentials to inclusive and sustainable economic growth and development has remained, rather elusive
“At this conference, we would therefore delve into some of these teething governance issues and institutional structures, as well as other relevant and related technical issues on the Energy, Economy and Environment nexus.
“We have a huge line-up of researchers, policy makers and professionals, in diverse fields, to facilitate discussions in these areas during the plenary and concurrent sessions.
“We also have a dedicated roundtable session tomorrow to mark the World Energy Day, where discussions would center on climate and environmental implications of our energy production and consumption processes, as well as other macroeconomic consequences.”
