Global energy security concerns and mounting economic pressures are pushing governments and investors to prioritise reliable hydrocarbon supply over the pace of an immediate energy transition, according to Oando Plc’s Group Chief Executive, Wale Tinubu CON.
Speaking in a BBC interview during his participation at the Africa CEO Forum, Tinubu said rising inflation, geopolitical instability, and energy supply disruptions are forcing countries to reconsider how quickly they can transition away from hydrocarbons while still maintaining economic stability and energy access.
According to Tinubu, the realities created by successive global crises—from the COVID-19 pandemic to the Russia-Ukraine war and the ongoing Middle East conflict—have placed governments under increasing economic pressure and weakened their ability to aggressively subsidise renewable energy transitions.
“The inflationary impact we’re going to experience is not going to allow governments to have the funding to subsidise the drive into renewables,” Tinubu said. “I expect that hydrocarbon demand is increasing. The evidence is there that capital is moving back into hydrocarbons, and people realise that energy security is a lot more important now than energy transition.”
