Nigeria Needs $10 Billion to Finance its Energy Transition Plans

 


By Hamza Badamasi


The federal government has unveiled its energy transition strategy as a key step toward universal energy access by 2030 and a carbon-neutral economy by 2060.

Vice President Yemi Osinbajo stated during a virtual launch of the country's energy transition road map that Nigeria needs at least an extra $10 billion annually and a total of $410 billion to achieve its net-zero targets by 2060. According to a government statement, Nigeria has already received a $1.5 billion pledge from the World Bank and is currently in negotiations with the US Export-Import Bank for an additional $1.5 billion.

He stated that the plan will, among other things, lift 100 million people out of poverty, reduce Nigeria's carbon footprint, drive economic growth, and create jobs.

 "For Africa, the problem of energy poverty is as important as our climate ambitions. Energy use is critical for almost every aspect of development; wealth, health, nutrition, water, infrastructure, education, and life expectancy are all strongly related to per capita energy consumption. Nigeria would need to spend $410 billion above business-as-usual spending to deliver our transition plan by 2060, which translates to about 10 billion dollars per year. The average $3 billion per year investment in renewable energy recorded for the whole of Africa between 2000 and 2020 will certainly not suffice. " He added.

"More importantly, we need to take ownership of our transition pathways and design climate-sensitive strategies that address our growth objectives. This is what Nigeria has sought to do with our energy transition plan. The plan was designed to tackle the dual crises of energy poverty and climate change and deliver SDG seven by 2030 and net zero by 2060. While centering the provision of energy for development, industrialization and economic growth, we anchored the plan on key objectives, including lifting 100 million people out of poverty in a decade, driving economic growth, bringing modern energy services to the full population, and managing the expected long-term job loss in the oil sector due to global decarbonisation. Osinbanjo continued.

According to the vice president, given these goals, the plan acknowledges the role of natural gas in the short term to expedite the formation of this low energy capacity and address the country's lack of clean cooking in the form of LPG.

“The plan envisions vibrant industries powered by low carbon technologies, streets lined with electric vehicles, and livelihoods enabled by sufficient and clean energy. The plan has the potential to create about 340,000 jobs by 2030 and 840,000 jobs by 2060. And it presents a unique opportunity to deliver a true low carbon and rapid development model in Africa’s largest economy.”

Government representatives also spoke at the launch, including the ministers of the environment, Mr. Mohammed Abdullahi; power, Mr. Abubakar Aliyu; power (state), Mr. Goddy Jedy Agba; works and housing, Mr. Babatunde Fashola; finance, budget, and national planning, Mrs. Zainab Ahmed; managing directors, NNPC limited, Rural Electrification Agency, Mr Mele Kyari and Mr. Ahmad Salihijo respectively.  The deputy secretary-general of the United Nations, Amina Mohammed, minister of petroleum and energies from Senegal, Dr. Aissatou Sophie Gladima and minister of electricity and renewable energy from Egypt, Prof. Dr. Mohamed Shaker El-Markabi also spoke at the occation.

 

 

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