Nigeria Energy Transition Plan
Nigeria is a high-impact country for achieving Sustainable Development Goal 7 (SDG7), which targets universal access to clean and affordable energy. Based on the latest data available, 92 million Nigerians lack access to electricity while 175 million lack access to clean cooking solutions. At the same time, the reality and grave impacts of climate change are already manifest in the form of floods, pollution, erosion, desertification, and the associated socio-economic consequences. As a result, demanding and modelling bold action to address energy poverty and mitigate climate change is a priority for the nation. This served as the backdrop for Nigeria to become the first African country to develop a detailed Energy Transition Plan (ETP) in 2021.
With the support of the SEforALL, the Nigerian Government designed the plan to tackle the dual crises of energy poverty and climate change and deliver SDG7 by 2030 and net zero by 2060, while also providing energy for development, industrialization, and economic growth. The ETP details pathways for significant low-carbon development of energy systems across 5 key sectors: Power, Cooking, Transport, Industry, and Oil and Gas.
To deliver net zero by 2060, Nigeria requires ~USD 410 billion above business-as-usual spending (between 2021 and 2060): USD 150 billion net spend on generation capacity, USD 135 billion on transmission and distribution infrastructure, USD 79 billion on cooking, USD 21 billion on industry, USD 12 billion on transport, and USD 12 billion on oil and gas decarbonization. Nigeria’s Energy Transition Office has identified an initial USD 23 billion investment opportunity across a portfolio of projects, out of which ~USD 17 billion is estimated as funding required through the private sector, across generation, transmission and distribution, metering, gas commercialization, clean cooking, e-mobility, and healthcare.
Since its unveiling, the ETP has been approved by Nigeria’s Federal Executive Council (FEC) and adopted as national policy. There is an Energy Transition Implementation Working Group at the Presidency in Nigeria. SEforALL and the Global Energy Alliance for People and Planet (GEAPP) support the working group through a dedicated secretariat, the Energy Transition Office (ETO).
In the past year, the Energy Transition Office has:
- Raised over USD 3.6 billion for the implementation of the ETP.
- Supported project preparation of the priority ETP Projects: On-Grid Renewable Energy (Solar IPPs), the Nigeria Gas Flare Commercialization Programme, and other scaled Decentralized Renewable Energy Programmes.
- Advanced an FG and Sun Africa LLC implementation framework agreement for the construction of 5,000 MW of solar generation and 2,500 MW of battery energy storage power plants.
- Supported the development of the case for innovative financing mechanisms such as Debt-For-Clean Energy Investment and Carbon Market Development.
410 bn $
Investment needed above business-as-usual spending, to achieve net-zero by 2060
23 bn $
Investment opportunities already identified
Nigerians lifted out of poverty by 2060