LEGAL AND ECONOMIC PERSPECTIVES TO SUSTAINABLE SOVEREIGN DEBT MANAGEMENT IN NIGERIA: ENERGY POVERTY IN PERSPECTIVE

Daniel Olika

INTRODUCTION

In recent times, Nigeria’s total debt stock and its debt management strategies have been a thorny fiscal policy issue in the academia and the media. This is made worse by the fact that the debt profile continues to increase with no infrastructure to show for the increasing debt profile. With contrasting views being canvassed in different circles as to the economic impact of these loans, it has been difficult to state what the exact impact Nigeria’s debt stock has on its economy and how effective the debt management strategies put in place have been. The debates notwithstanding, the fall in oil prices and the impact of the novel corona virus pandemic on the economy leaves the government with extraordinarily little options to address its budget deficit. Despite the dire economic situation, the energy poverty level in the country continues to rise; thereby increasing the need to deploy resources to address energy access in Nigeria. This article therefore undertakes a legal and economic analysis of Nigeria’s debt profile and the debt management strategies. The article does so by comprehensively analysing the economic implications of Nigeria’s debt profile, the impact of its debt management strategies on its economy, and a legal analysis of its debt management strategies and policies. The article also analyses the impact of the total debt stock and the sovereign debt management strategies on energy poverty in the country. The article concludes by arguing that although available data suggests that Nigeria’s public debt is sustainably managed given the low debt to GDP ratio, the high cost of servicing these debts have adverse economic implications on development generally (and energy poverty in particular) and necessitates a thorough review of its legal and policy foundations for managing sovereign debt.

Keywords: Debt Management Strategy, Sovereign Debt, Debt Crisis, Sustainable Debt Management, Debt Servicing, Energy Poverty

DOI: https://dx.doi.org/10.4314/jsdlp.v12i1.6

LL.B (Lagos). Currently an Associate at Kenna Partners and can be reached at; daniel_olika@yahoo.com

SHOULD COUNTRIES FIRE SELL THEIR OIL & GAS ASSETS? ADDRESSING THE MIS-CONCEPTIONS SURROUNDING THE CONTINUED ROLE OF FOSSIL FUELS IN THE ENERGY TRANSITION ERA

Victoria R Nalule 1

Xiaoyi (Shawn) MU 2

INTRODUCTION

Access to modern energy such as electricity is key in the economic development of any country, and yet over 600 million people remain with no access to electricity in developing countries. It is true that both renewable energy and fossil fuels are key in the achievement of the United Nations Sustainable Development (UN SDG) Goal 7 and Goal 1 on energy access and poverty eradication respectively. However, the current global efforts to transition to a low carbon economy, and tackle climate change as stipulated in the SDG 13 and the 2015 Paris Agreement, have created a lot of tension on fossil fuel developments in recent years. This commentary article is presented as a question and answer session aimed at addressing the misconceptions surrounding the achievement of SDG 7 and SDG 13 in this energy transition era. The paper is of interest to oil producing countries. The article follows the various questions raised by policymakers during an online seminar delivered by both the authors entitled, ‘Fossil Fuels in the Energy Transition Era’.

Keywords: Energy Access; Climate Change; Energy Transitions; clean energy technology: Sustainable Development

DOI: https://dx.doi.org/10.4314/jsdlp.v11i2.7

1 Victoria R. Nalule holds a PhD in International Energy Law and Policy from the Centre for Energy, Petroleum and Mineral Law and Policy (CEPMLP), University of Dundee. She is currently working on the DFID-funded Extractives Hub project in the UK as a Research Fellow. She is also the founder and Executive Director of the African Energy and Minerals Management Initiative (AEMI).

2 Dr. Xiaoyi (Shawn) Mu is a Reader in Energy Economics at the Centre for Energy, Petroleum and Mineral Law and Policy (CEPMLP), the University of Dundee. He earned his Ph.D. in economics from the University of Oklahoma in 2006 and Bachelor’s degree in economics from Renmin University of China in 1994.

SUSTAINABLE DEVELOPMENT GOALS, EXTRACTIVES INDUSTRIES AND THE ENERGY NEXUS – INSIGHTS IN THE MENA REGION

John Kilani

INTRODUCTION

Sustainable development is undoubtedly one of the biggest challenges the world continues to face today. We live in a world where more than 800 million people still live in extreme poverty; one out of nine people are starving; 2.5 billion lack access to clean water; and 1.3 billion people have no access to modern electricity. It is against this backdrop that the world leaders in September 2015 adopted the 2030 Agenda for Sustainable Development, enshrining the 17 UN Sustainable Development Goals (SDGs) – a new, universal set of goals, targets and indicators that all UN Member States are expected to use for framing their sustainable development agendas and policies until 2030. This article seizes the opportunity to engage in the ongoing discourse on the contributions from major sectors to the realization of the SDGs, particularly in the face of growing world population. The purpose of the article is to explore the role of the energy sector in the implementation of sustainable development agendas, particularly in the MENA region. The article finds that the region’s diverse circumstances and substantial petroleum and natural gas reserves make it an ideal region for typifying the central role of energy in today’s world. The article explores, under five themes, some pertinent issues relating to the UNSDGs and their connectivity to energy, drawing illustrative examples from four countries – one small resourcerich country (Qatar), one relatively large resource-rich country (Saudi Arabia), the largest country from North Africa (Egypt), and a country grappling with the challenges of reconstruction after years of strive and instability (Iraq). The article highlights that some of the countries are successfully unlocking the benefits of economic growth, through the development of their natural resources. It concludes that, through concerted efforts to address some challenges, extractive sector operations can play significant roles in advancing the SDGs in the entire region.

Keywords: Sustainable Development; UNSDGs; Energy; MENA Region.

DOI: https://dx.doi.org/10.4314/jsdlp.v11i2.9

Director of Sustainable Development, The Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development, Doha, Qatar.