Impact of Nigerian Energy Challenge and Global Climate Change Politics on Consumer Welfare: Nexus with ECOWAS Member Countries

Abstract

Nigeria faces a dual challenge: addressing its domestic energy crisis while navigating global climate change policies aimed at decarbonizing the energy sector. This paper explores the impact of Nigeria’s energy challenges and global climate policies on consumer welfare, focusing on the nexus within the Economic Community of West African States (ECOWAS). With approximately 71% of Nigeria’s population lacking access to modern energy services, energy shortages and high costs limit economic development, exacerbating poverty and inequality. Global climate commitments, such as the Paris Agreement, add complexities, requiring Nigeria to shift toward cleaner energy sources. Additionally, the country’s reliance on fossil fuels increases vulnerability to international price fluctuations and environmental challenges. As Nigeria’s energy policies resonate across ECOWAS, regional energy integration initiatives, such as the West African Power Pool (WAPP), present opportunities to enhance energy security and consumer welfare. This study emphasizes the need for sustainable energy strategies that balance climate obligations with economic development to improve living standards across Nigeria and the broader ECOWAS region.