Evaluating the Techno-Economic Viability of Carbon Capture, Utilization, and Storage for Nigeria's Net-Zero Transition

Abstract Nigeria has committed to achieving net-zero greenhouse gas emissions by 2060; however, practical and economically viable pathways for decarbonizing its hydrocarbon-dependent economy remain underexplored. Carbon Capture, Utilization, and Storage (CCUS) is widely recognized as a critical transition technology, yet there is limited country-specific evidence on its techno-economic feasibility, revenue integration mechanisms, and regulatory readiness in Nigeria. This study addresses this gap by evaluating the techno-economic potential of CCUS as a strategic enabler of Nigeria's net-zero transition. Nigeria currently emits approximately 28 million tonnes of CO2 annually, with emissions projected to increase by 3–5% per year. The country possesses an estimated 10,700 gigatonnes of prospective geological CO2 storage capacity, predominantly within depleted oil and gas reservoirs and saline aquifers in the Niger Delta. Despite this advantage, the absence of integrated deployment frameworks has constrained CCUS adoption. This paper investigates the following research questions: (i) How economically viable is CCUS deployment in Nigeria when integrated with Enhanced Oil Recovery (EOR) and blue hydrogen production? (ii) What revenue mechanisms can offset high capital costs and investment risks in the Nigerian context? (iii) Which policy and regulatory models would suit Nigeria's institutional and legal environment and realities? Using a techno-economic assessment and comparative policy analysis, the study demonstrates that coupling CCUS with EOR can enhance oil recovery by approximately 5–15%, generating immediate revenue streams to partially offset capture and storage costs. In parallel, the integration of CCUS with steam methane reforming enables blue hydrogen production, positioning hydrogen exports, incremental oil revenues, and carbon offsets as complementary financial pillars that improve project bankability. By providing an integrated techno-economic and policy-focused assessment tailored to Nigeria, this study closes a critical gap in the literature and offers actionable insights for policymakers and investors seeking to deploy CCUS at scale as part of Nigeria's net-zero strategy.