Energy and Sovereignty: Nigeria's Challenge in a Transitioning World.

The energy transition and the design of the oil extraction model have posed enormous challenges for emerging countries in their quest for energy sovereignty. Not only do they face limited private investment in non-renewable energy extraction projects, but for decades, they have operated under a system that prioritizes crude oil exports for refining abroad, leaving them dependent on importing refined products like oil or diesel. This system not only transfers the added value of oil to other nations but also burdens producing countries with the environmental and social costs of extraction.

A clear example of this imbalance is Nigeria. This country, a leader in crude oil extraction in Africa, faces an alarming dependence on refined fuel imports, a situation that became evident with the removal of subsidies for gasoline and diesel. While these products are often associated primarily with transportation, the impact goes much further: they undermine the country’s energy sovereignty and block the country’s potential for economic growth. The collapse of Nigeria’s power grid, which occurred for the eleventh time in November 2024, highlights the fragility of its energy infrastructure and the urgent need for both immediate and sustainable solutions.

The most recent data reflect how this crisis affects the country’s economy. In October 2024, inflation reached 33.9%, its highest level in four months. This increase was driven by rising food prices, energy costs due to higher fuel prices, and currency market volatility. Food inflation, which represents the largest share of expenses in Nigeria, soared to 39.2%. In the short term, this phenomenon creates unsustainable inflationary pressures on a population already struggling with economic difficulties.

Of course, encouraging investments in renewable energy must be a priority for Nigeria. Modernizing its energy matrix is essential, but these projects require time for planning, discussion, construction, and implementation. The problem is that time is not on the country’s side, and environmentally sustainable solutions that can be implemented immediately are scarce.

See: Here’s how Nigeria is tackling the barriers to its green energy transition (HERE)

In this context, ThinkEnergy positions itself as the only solution to convert crude oil into diesel and help provide solutions to mitigate the current crisis. The company, already operating in emerging markets with limited infrastructure, transforms crude oil into cleaner fuels, such as D3 Diesel and F4 Fuel Oil, using modular and scalable technology. This technology allows for plant installation in just 60 days, significantly reducing operating costs and the space required compared to traditional refineries. Moreover, ThinkEnergy is one of the few companies capable of conducting a full life cycle assessment, certifying reductions of up to 50% in CO2e emissions.

In the long term, Nigeria must capitalize on its strategic location and climatic conditions to develop renewable energy sources that help gradually reduce its dependence on fossil fuels. However, as these strategies take shape, solutions like those offered by ThinkEnergy represent an essential bridge to meet internal fuel demands, alleviate inflation, and build a solid foundation for a more sustainable energy future. The energy transition is a complex process, but ThinkEnergy offers a viable and effective alternative to advance toward that goal.

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