Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Divestment in Fossil Fuel in Nigeria: The need for a U-turn

Grema Sulaiman Ahmad

Abstract

The objective of the paper is to cursory review the issue of divestment in fossil fuels and why African countries and Nigeria in particular need to continue their investment in fossil fuels along with other forms of renewable energy sources in the country. Library research was used in conducting the research via way of extensive reviews of journals, textbooks and other publications. The research was able to establish that the threat of climate change is real and the need for renewable sources of energy is valid, but Africa and Nigeria’s contribution to climate change is within a 5% benchmark and the abundant of crude oil, natural gas among other minerals and investment would be better served by focusing on investment in fossil fuels development.

Keywords

Fossil fuelInvestmentDivestmentOil & gas

References

Ansar, A., Caldecott, B., & Tibury, J. (2013). Stranded assets and the fossil fuel divestment campaign: What does divestment mean for the valuation of fossil fuel assets? Smith School of Enterprise and the Environment, University of Oxford. Asheim, G. B. 2012. A distributional argument for supply-side climate policies. Environmental and Resource Economics, 56(2), 239–54 Caldecott, B., Tilbury, J., & Carey, C. (2014). Stranded assets and scenarios (Discussion Paper, January). https://www.smithschool.ox.ac.uk/research/sustainable- finance/publications/Stranded-Assets-and-Scenarios-Discussion-Paper.pdf Cojoianu, T., Ascui, F., Clark, G., Hoepner, A., & Wójcik, D. (2021). Does the fossil fuel divestment movement impact new oil and gas fundraising? Journal of Economic Geography, 21(1), 141–164. Deutsche Welle (2022). What is the future for fossil fuel investments? https://www.dw.com/en/ipcc-report-world-reacts-to-ominous-climate-warning/a- 58811203 Guo, K. W. (2013). Current issues of fossil fuels and their future prospects. https://www.researchgate.net/publication/287281948_Current_issues_of_fossil_fuels_an d_their_future_prospects Hoepner, A., Majoch, A., & Zhou, X. (2019). Does an asset owner’s institutional setting influence its decision to sign the principles for responsible investment? Journal of Business Ethics, 1–26. Hoepner, A., Oikonomou, I., Scholtens, B., & Schröder, M. (2016). The effects of corporate and country sustainability characteristics on the cost of debt: An international investigation. Journal of Business Finance & Accounting, 43(1–2), 158–190. Hunt, C. W. (2017). A comparative analysis of the anti-Apartheid and fossil fuel divestment campaigns. Journal of Sustainable Finance and Investment, 7, 64–81. Juravle, C., & Lewis, A. (2008). Identifying impediments to SRI in Europe: A review of the practitioner and academic literature. Business Ethics: A European Review, 17(3), 285– 310. Kruitwagen, L., Madani, K., Caldecott, B., & Workman, M. H. W. (2017). Game theory and corporate governance: Conditions for effective stewardship of companies exposed to climate change risks. Journal of Sustainable Finance & Investment, 7(1), 14–36 Le Billon, P., & Kristoffersen, B. (2020). Just cuts for fossil fuels? Supply-side carbon constraints and energy transition. Environment and Planning A: Economy and Space, 52(6), 1072–1092 Okafor, C., Madu, C., Ajaero, C., Ibekwe, J., Bebenimibo, H., & Nzekwe, C. (2021). Moving beyond fossil fuel in an oil-exporting and emerging economy: Paradigm shift. AIMS Energy, 9(2), 379-413. Sandberg, J. (2013). (Re-) interpreting fiduciary duty to justify socially responsible investment for pension funds? Corporate Governance: An International Review, 21(5), 436–446. Scholtens, B., & Sievänen, R. (2013). Drivers of socially responsible investing: A case study of four Nordic countries. Journal of Business Ethics, 115(3), 605–616. Sievänen, R. (2014). Practicalities bottleneck to pension fund responsible investment? Business Ethics: A European Review, 23(3), 309–326. UN Environment Programme (2022). New investments in fossil fuel. https://www.unep.org/news-and-stories/story/oil-prices-spike-new-investments-fossil- fuels-could-be-disastrous-unep United Nations Economic Commission for Europe (2013). Mitigating climate change through investments in fossil fuel technologies. https://unece.org/DAM/energy/se/pdfs/CES/ahge9_nov2013/Mit_CC_invest_FF_ESNo4 0.pdf Urban, M. (2020, July 27). The FinReg Blog. https://sites.law.duke.edu/thefinregblog/2020/07/27/a-call-for-sustainable-investment- banking/ Urban, M., & Wójcik, D. (2019). Dirty banking: Probing the gap in sustainable finance. Sustainability, 11(6), 1745. Vincent, M. O., & Okowa, E. (2022). Fossil fuel consumption, economic growth, and environmental degradation: Is the ‘energy consumption-growth’ nexus sustainable in Nigeria? Journal of Economics and Finance, 13(2), 51-68. Weber, O., Hoque, A., & Ayub Islam, M. (2015). Incorporating environmental criteria into credit risk management in Bangladeshi banks. Journal of Sustainable Finance & Investment, 5(1–2), 1–15.

More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH

Building National Analytics Capacity: Advances and Future Pathways

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Root-Cause and Thematic Analysis for Major Incident Management: A Review

Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu

Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Human-In-The-Loop Decision Systems: Advances and Future Directions

Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,

Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria

Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa