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Carbon Capture, Utilisation and Storage (CCUS) in Nigeria’s Energy Transition: Closing Legal Gaps and Designing Policy Pathways

2025
Scholarly Work
Olutunji Oyelade, Victor Adewumi
Carbon Capture, Utilization and Storage
Africa, CCS Liability
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Summary/Abstract

As the global community advances towards Net-Zero targets, with efforts to limit global warming to 2°C also intensifying, countries have begun to adopt climate adaptation and mitigation technologies. One of such technologies is Carbon Capture, Utilisation and Storage (CCUS) given its potential to reduce greenhouse gas emissions, especially from hard-to-abate sectors. Several developed economies including Norway and the United States have begun to leverage CCUS, developing coherent legal and fiscal frameworks that support the adoption of this technology. The United States in particular leads the charge with the highest number of publicly announced projects. This level of adoption is however not replicated in developing economies, particularly Africa, despite being one of the most vulnerable and least resilient regions to climate change. In Nigeria particularly, while there is some policy enthusiasm, especially with references to the adoption of the CCUS in the country’s Energy Transition Plan (ETP), the development of the technology in Nigeria is still largely theoretical. The main thrust of this article will be to examine the legal, policy, and institutional dimensions of deploying CCUS within Nigeria’s energy transition framework. This is especially important considering the prime role that the country plays in Africa’s climate future given its large population, extensive coastline and its legacy as one of the continent’s most important country, politically and economically. The article situates its analysis within Nigeria’s peculiar emissions profile and developmental constraints, arguing that the country’s heavy reliance on fossil fuels, continued gas flaring, and structural energy poverty makes the adoption of CCUS important if it were to achieve its Net-Zero target. The article finds that although Nigeria possesses significant geological potential for CO₂ storage, the absence of comprehensive geological surveys, a clear liability regime, and enabling legislation undermines investment confidence and project viability. The article further demonstrates that existing instruments contain only fragmented references to CCUS and are therefore insufficient to move the adoption of the technology from policy rhetoric to regulatory reality. It recommends the enactment of a dedicated CCUS statute defining subsurface ownership and liability, instituting rigorous monitoring, reporting and verification (MRV) standards, and integrating CCUS within the ETP. By addressing these legal and policy gaps, Nigeria can establish a credible pathway for operationalising CCUS as an important tool for decarbonisation, sustainable energy governance, and climate accountability.

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