Transitioning to a Circular Economy through Network Governance: The Case of the Nigerian Oil and Gas Sector

Environmental challenges such as climate change, pollution, and resource depletion associated with fossil fuel based industrial activities have intensified calls for a transition away from linear “take–make–dispose” economic models towards more circular regenerative approaches. The circular economy (CE) is an economic model that seeks to minimise waste, reuse materials and optimise resource use, offering a pathway to more sustainable business practices. However, transitioning to CE cannot be achieved by a single firm alone; it relies on collaboration, coordination and long-term interactions between organisations that exchange resources, knowledge and technologies. Therefore, industrial networks are crucial to transition towards CE practices. Despite this importance, the role of industrial networks in enabling CE transitions remains under-researched, particularly in the context of resource dependent and low- or middle-income countries (LMICs). This conceptual paper explores the role of industrial networks in enabling the implementation of CE practices in the Nigerian oil and gas sector. Recent circular initiatives in the sector such as gas flare recovery, drilling materials reuse, and repurposing of decommissioned infrastructure provide an opportunity to examine how network relationships shape CE transitions. The research draws on two complementary theoretical perspectives, the Industrial Network Approach for a relational lens to understand how long-term relationships, trust, and resource interdependencies shape collaborative action within industrial networks and on the Multi-Level Perspective to explore how niche innovations, established regimes and wider landscape pressures shape transitions. Accordingly, the study frames CE transitions as relational and networked processes rather than purely technological or policy-driven changes. The paper contributes by proposing a conceptual framework for investigating transitions to circular economy practices in the Nigerian oil and gas sector.