Demystifying Role of Energy Transition and Entrepreneurship in Achieving Carbon Neutrality

ABSTRACT Millions of entrepreneurs face silent failure—not from lack of will, but due to entrenched systemic barriers. Without institutional reform, carbon neutrality remains a distant ideal, and critical human potential risks irreversible loss. This paper examines the dynamic relationship between energy transition, entrepreneurship, and carbon neutrality in Nigeria from 1985 to 2024. Employing a rigorous time series econometric framework—including Bayer and Hanck cointegration, Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), Canonical Cointegration Regression (CCR), and Robust Least Squares (RLS)—the study identifies statistically robust long‐run equilibrium relationships among key variables. Findings reveal a duality: while energy transition, entrepreneurship, and human development contribute to reducing carbon intensity, economic growth and foreign direct investment increase emissions, exposing a systemic paradox at the heart of contemporary development discourse. Growth and innovation, while indispensable, may erode environmental objectives without deliberate institutional design. This paper recommends establishing a centralised, well‐funded energy transition authority in Nigeria, embedding green entrepreneurship through targeted fiscal incentives and capacity building, and legislating enforceable carbon neutrality milestones. These policy measures provide a replicable framework for African economies, underscoring structural reform as essential for equitable, sustainable development under the SDG agenda.