By Ogenyi Ogenyi, Uyo
Oil-producing states in Nigeria have been called to urgently reduce their reliance on debt and prioritize diversification into non-oil revenue sources as a strategy for fiscal resilience amidst the ongoing global energy transition.
This appeal was made during a two-day regional dialogue held in Uyo, focused on enhancing subnational fiscal resilience in the Niger Delta. The event was organized by Policy Alert in collaboration with the Natural Resource Governance Institute (NRGI) and BudgIT Foundation. It brought together government officials, civil society organizations, community leaders, and young people to discuss challenges and opportunities posed by the energy transition.
The dialogue highlighted the fiscal vulnerabilities of Niger Delta states and explored strategies for economic diversification, debt reduction, fiscal transparency, and greater inclusion of civil society and youth in decision-making processes.
“Considering the shrinking fiscal wiggle room that the energy transition may initiate, states in the Niger Delta region must be cautious about piling on more debt,” said Edidiong Dickson, Lead for the Energy Extractives and Climate Justice Programme at Policy Alert. He stressed that limiting debt appetite is vital to building resilience in the region.
Tengi George-Ikoli, Senior Program Officer at the NRGI, emphasized the need for Nigeria, particularly oil-producing states, to align with the global shift away from fossil fuels. She outlined initiatives aimed at stimulating economic growth and social development to strengthen fiscal resilience.
The event included two panel sessions:
- The Energy Transition: Strengthening Government Response to the Global Energy Paradigm
- Balancing Fiscal Resilience and Community Needs
During the discussions, state government representatives detailed measures to boost non-oil revenue and adapt to the energy transition. Community leaders provided insights into the fiscal risks associated with the transition, particularly its impact on marginalized groups and fence-line communities.
Key issues such as rising youth unemployment, poverty, illiteracy, inadequate healthcare, and youth exclusion from decision-making processes were identified as significant challenges affecting the Niger Delta’s younger population.
The dialogue concluded with the launch of a handbook, Strengthening Fiscal Resilience to Minimize the Impact of the Energy Transition, and the adoption of actionable recommendations for Niger Delta states to prepare for a sustainable, post-oil future.
