The federal government of Nigeria has officially launched its Energy Transition Plan (ETP) as a significant path to achieving universal electrification by 2030 and a carbon-neutral economy by 2060. The global launch of the ETP, designed to tackle energy poverty and climate change crisis, was hosted by Vice President Yemi Osinbajo.
Speaking at the virtual launch of the event, the Vice President announced that Nigeria will seek at least $10 billion a year from international partners to fund its new Energy Transition Plan. The country needs a total of $410 billion to attain its goal of net zero by 2060. Nigeria has already secured $1.5 billion funding from the World Bank and is in talks with the US EXIM Bank for additional funding of $1.5 billion.
Osinbajo highlighted that the average investment of $3 billion per year in the renewable energy sector recorded for the whole of Africa between the years 2000 and 2020 is not sufficient. According to him, the continent’s increasing energy gaps require decisive and urgent action along with collaboration to take ownership of its transition pathways.
The Vice President said the problem of energy poverty in Nigeria is as important as the country’s climate ambitions. Making reference to the Energy Transition Plan, he mentioned the design of the plan is aimed to tackle climate change and achieve sustainable and net-zero goals, along with centering the provision of energy for industrialization and economic growth.
Osinbajo also announced to launch of a program focusing on solar energy providers, supporting the Energy Transition Plan. The new program will run under the Sustainable Energy For All (SE4ALL) – Universal Energy Facility.
The Universal Energy Facility will provide solar companies with grant payments enabling them to expand their operations to small and medium-sized industry sectors across Nigeria while crowding in additional private capital. The initiative is a results-based finance program targeting to scale up electricity generation along with productive use of energy.
Nigeria’s Energy Transition Plan is designed to uplift the lives of a hundred million people in a decade, bring modern electricity services, manage job losses in the oil sector due to global decarbonization, as well as drive economic growth.