Economic Viability of Nuclear Energy in Nigeria and the Need for Legislative Incentives and Risk Mitigation

Abstract

Nigeria's profound energy deficit, characterized by unreliable power supply and over-dependence on fossil fuels, severely constrains its economic development and environmental sustainability. Nuclear energy presents a viable pathway to deliver reliable, low-carbon base load power, aligning with national goals for energy security and sustainable development as outlined in the Energy Transition Plan and the Nuclear Power Roadmap. However, its deployment is impeded by significant economic and institutional challenges, including exorbitant upfront capital costs, investment risks, regulatory inadequacies, and public apprehension. A critical research gap exists in the development of a holistic, Nigeria-specific framework that synergistically combines economic models, legislative incentives, and robust risk mitigation strategies to de-risk nuclear investments and ensure bankability. This study aims to bridge this gap by evaluating the economic viability of nuclear energy in Nigeria and formulating a comprehensive policy framework to facilitate its adoption. The methodology involves a systematic review of literature, comparative policy analysis, and economic modelling. Findings indicate that while nuclear energy offers substantial long-term economic and environmental benefits, its viability is contingent upon implementing targeted legislative incentives (such as tax credits, loan guarantees, and streamlined regulations) and robust risk-sharing mechanisms. The study concludes that without such a structured framework, Nigeria's nuclear ambitions will remain unrealized, perpetuating energy poverty. It advocates for urgent legislative action, international collaboration, and a phased adoption of Small Modular Reactors (SMRs) as a strategic future direction.