What is the Role of Industrial Networks in Enabling the Implementation of the Circular Economy? 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 and regenerative approaches. The circular economy (CE) is an economic model that seeks to minimise waste, reuse materials and optimise resource use, offering a potential pathway towards more sustainable industrial 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 support the implementation of 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 research explores the role of industrial networks in enabling the implementation of CE practices in the Nigerian oil and gas sector. Nigeria represents a relevant and challenging context due to its strong economic dependence on oil production and the sector’s long standing environmental issues, including gas flaring, oil spills, and inefficient resource use. Addressing these challenges requires coordinated action among regulators, operators, service providers, and other industry actors, placing interorganisational relationships at the centre of sustainability efforts. 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 support or hinder CE implementation.
The research draws on two complementary theoretical perspectives. First, the Industrial Marketing and Purchasing approach offers a relational lens to understand how long-term relationships, trust, and resource interdependencies shape collaborative action within industrial networks. In parallel, the Multi-Level Perspective illustrates how niche innovations, established regimes and wider landscape pressures interact to shape transitions. By combining these perspectives, the study frames CE transitions as relational and networked processes rather than purely technological or policy-driven changes. The contribution of this paper, therefore, is to offer a view of the role industrial networks may play in enabling CE implementation in developing and resource-dependent contexts.