Divesting from fossil fuel could reduce Nigeria’s GDP by $30 billion – Afrexim Bank

This is contained in the Afrexim Bank Africa Trade Report 2024 where it stated that divesting from fossil fuels could cost the African continent around $190 billion in GDP.

The report noted that a reduction in fossil fuels could mean a decline in emissions from the continent, but noted that most African countries use fossil fuels to meet their immediate energy needs and also serve as a major source of exports, foreign exchange, job creation and power generation and supply.

The report states, “For major oil exporting countries, including Algeria, Angola, Equatorial Guinea, Gabon, Nigeria, and the Republic of Congo, fossil fuel also represents the main source of export earnings and fiscal revenues, job creation, fossil fuel-based power generation and supply, and power to fossil fuel-intensive industries.”

“Divesting from fossil fuel could reduce GDP by as much as US$30 billion in Nigeria, US$22 billion in Algeria, US$19.3 billion in Angola and an aggregate of US$190 billion for the continent.”

Furthermore, the report lamented Africa’s energy poverty stating that despite holding around 17% of the world’s population, it only expends 6% of its energy with around 600 million people without access to electricity and around 900 million lacking access to clean cooking fuels.

In recent times, there have been calls for African countries to abandon fossil fuel energy sources and invest in climate-friendly clean energy as a measure to combat climate change. In 2015, 54 African countries signed the Paris Climate Agreement including Nigeria and they have all gone to ratify the accord.