In a bid to advance Nigeria’s Energy Transition Plan (ETP), the Minister of Power, Adebayo Adelabu, revealed on Monday that the Federal Government has identified approximately $23 billion in investment opportunities. These opportunities, integral to the ETP, are expected to not only boost electric power for economic development but also generate a significant number of jobs, reaching up to 340,000 by 2030.
Key Investment Areas and Job Creation
Adelabu highlighted that the ETP focuses on sectors such as power, cooking, and transport, aiming to create up to 840,000 jobs by 2060. Gas, positioned as a transition fuel, will play a critical role in Nigeria’s net-zero pathway, particularly in power and cooking. The identified investment opportunities include projects related to solar energy, green hydrogen, and electric vehicles.
He stated, “The ETP creates significant investment opportunities such as the establishment and expansion of industries related to solar energy, green hydrogen, and electric vehicles.”
Financial Commitment for Net Zero by 2060
To achieve Nigeria’s net-zero target by 2060, Adelabu noted that an investment of $1.9 trillion is required, including $410 billion above usual spending. This additional cost equates to about $10 billion annually. The $23 billion investment opportunity has been pinpointed based on existing in-country programs and projects directly linked to the Just Energy Transition.
Gas as a Transition Fuel
Addressing the role of gas in Nigeria’s energy transition, Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, emphasized the potential for gas to produce blue hydrogen. While acknowledging that blue hydrogen is not as clean as green hydrogen, it is seen as a valuable asset in Nigeria’s journey toward cleaner energy sources.
Orji expressed concerns about the current challenges in implementing efficient gas commercialization and utilization policies. He cited a recent NEITI report revealing unremitted revenue of over $8.2 billion, including outstanding gas royalties and unpaid gas flare penalties.
International Collaboration for Hydrogen Production
The Ambassador of Germany to Nigeria, Annett Günther, affirmed the commitment of both Germany and Nigeria to drive hydrogen production and usage. She referenced German Chancellor Olaf Scholz’s recent visit, highlighting that the energy partnership extends beyond traditional fossil fuels to encompass hydrogen as the energy source of the future.
Markus Wagner, the Country Director of GIZ Nigeria and ECOWAS, emphasized the transformative potential of green hydrogen in reducing carbon emissions, diversifying energy sources, and fostering economic growth. He noted the longstanding cooperation between Nigeria and Germany in the energy sector and the pivotal role of green hydrogen in this collaborative effort.