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Business News of Wednesday, 24 May 2023


Nigeria’s energy transition may gulp $410bn

Nigeria Nigeria

AS Nigeria prepares to utilize natural gas as its transition fuel, there are indications that the Federal Government may have set investment amount for its Energy Transition Programme, ETP, at $410billion of which $10 billion will be spent yearly.

Already, the nation’s Energy Transition Office, ETO, domiciled in the Office of the Vice President has secured about $8.2 billion in financing commitments, with ongoing efforts to secure further funds.

THE Principal Specialist (Energy and Climate) and Co-Head of the ETO, Lolade Abiola, who confirmed the development at the just-concluded Women in Energy Dialogue in Lagos, said: “To achieve the ambitious goals of the ETP, substantial financial resources are required.”

She said the aim is to connect businesses with financiers who are interested in supporting clean technology and low-carbon projects, adding that “ETO also engages with the private sector, with over $17 billion of the funding targeted for private sector investments.”

Abiola highlighted the disproportionate impact of inadequate energy access on women and children, emphasizing that Nigeria has seen a remarkable rise in the participation of women in the energy sector, taking on roles as solar entrepreneurs, capacity builders, policy makers, engineers, financiers, and communicators. Women are boldly asserting their presence in this traditionally male-dominated field.

Abiola disclosed that the ETP focuses on five key sectors: cooking, transport, industry, oil and gas, and power, aims to transition to cleaner technologies such as electric and solar cooking, e-mobility, low-carbon industrial processes, and renewable energy in the power sector.

According to her, Nigeria, recognised as a high-impact country for achieving United Nations Sustainable Development Goal 7 (SDG7) of universal access to clean and affordable energy, has prioritised bold action to address energy poverty and mitigate climate change.

She said that in 2021, Nigeria made history as the first African country to develop a comprehensive Energy Transition Plan (ETP) with the support of the UN Sustainable Energy for All (SEforALL).

Abiola noted that following its approval by Nigeria’s Federal Executive Council (FEC), the ETP has been adopted as a national policy to drive its implementation; an Energy Transition Implementation Working Group (ETWG) chaired by Vice President Yemi Osinbajo, and comprising key ministers has been established. The ETWG is supported by the Energy Transition Office (ETO), with resources provided by SEforALL and the Global Energy Alliance for People and Planet (GEAPP).