Lai Mohammed urges fiscal incentives, carbon capture for extractive sector
Former Minister Lai Mohammed called for competitive fiscal incentives, transparent policy frameworks, and carbon capture initiatives to transform Nigeria’s extractive sector.
Speaking at the Oriental News Nigeria 2026 Conference in Lagos, former Minister Lai Mohammed called for competitive fiscal incentives, transparent policy frameworks, and carbon capture initiatives to transform Nigeria’s extractive sector. He noted that decarbonisation is an immediate economic priority to attract clean energy investment and build sustainable energy infrastructure.
Mohammed’s comments reflect a growing recognition that Nigeria’s extractive sector must adapt to the global energy transition. As countries move towards net-zero emissions, demand for fossil fuels is expected to decline, while demand for critical minerals used in clean energy technologies is expected to rise. Nigeria must position itself to benefit from this shift.
The call for carbon capture initiatives is particularly significant. Nigeria has significant natural gas reserves, which are increasingly seen as a transition fuel. Carbon capture and storage could enable the continued use of natural gas while reducing emissions, providing a bridge to a cleaner energy future.
This echoes the 2010s extractive sector reforms, which also sought to attract investment and improve transparency. The mechanism then was different, but the result was the same: a recognition that the sector must adapt to changing global conditions.
The winners: Nigeria’s extractive sector, which gains from investment; and the Nigerian economy, which benefits from diversification. The losers: the Nigerian environment, which faces continued emissions; and the Nigerian government, which must implement the reforms.
Bottom Line: Lai Mohammed wants fiscal incentives and carbon capture for the extractive sector. The goal is to attract clean energy investment. The question is whether the government will act on his advice.