Exploring the Barriers to Implementation of Carbon Capture, Utilisation and Storage in Nigeria

Abstract The global economy has increased CCUS technology development programmes to attain its commercial deployment, which is expected to be beneficial for developing countries such as Nigeria. This paper aims to examine the barriers to CCUS implementation in Nigeria by investigating the differences between global CCUS and Nigerian status, evaluating the perspectives of industry and government practitioners on the economic barriers to CCUS implementation, and identifying policy and industry strategies to deepen the adoption of CCUS. Study participants were selected using a purposive sampling technique to explore the opinions of personnel working in three oil-related agencies: Nigerian National Petroleum Corporation, Ministry of Petroleum Resources and Nigerian Liquefied Natural Gas. Information collected from existing literature and related reports on CCUS were critically analysed, whereas data from semi-structured interviews were generated by audio-recording of participants’ responses. These responses were transcribed from audio recordings for each participant and quality controlled by ensuring that transcripts matched the respective responses. Transcripts were analysed using thematic analysis, exploring the research theme using both theory and practice. The theoretical framework utilised PESTEL and SWOT analyses to evaluate the macro environment and the internal and external environment of CCUS implementation in Nigeria. PESTEL analysis showed that CCUS implementation in Nigeria is driven by various regulatory and policy frameworks, lack of adequate capital, public acceptance and infrastructure. Similarly, the SWOT analysis showed that Nigeria has enough coal reserves that could serve as a potential for CCUS implementation. However, Nigeria’s weaknesses include lack of expertise in CCUS technology, inadequate capital for CCUS investment and policy summersaults by successive governments. Nigeria should thus consider the introduction of subsidies to mitigate various barriers and challenges that hinder CCUS implementation, e.g., low tax rate for enterprises involved in CCUS implementation. There is also urgent need to improve funding of CCUS implementation through foreign direct investment or by the equity market. Furthermore, the importance for an enhanced technology to deepen the adoption of CCUS in Nigeria can not be overemphasized as the world moves towards decarbonisation and Net Zero.