Abstract

The impact of the global energy policy that is pushing for a cleaner energy and the need for an environmentally friendly energy source such as renewable energy in view of the global concern for climate change that has largely been attributed to the activities of fossil fuel extraction, production and utilization on emerging economies like Nigeria deserves attention. Both foreign and domestic investment in the oil sector would be affected. Fewer investors would be willing to invest because there would be fewer buyers for the product due to declining demand. Consequently, Nigeria would struggle to fund its fiscal activities that depend largely on revenue from oil. Nevertheless, if Nigerian government could restructure its economy to be less dependent on oil by shifting emphasis to non-oil sectors like mining, agriculture and manufacturing, the potential impacts could be mitigated. However, for this to be feasible, deserve attention should be given to the power sector to promote rapid economic development particularly in the non-oil sector of the economy.