Leading energy industry’s stakeholders at the 2022 Annual Convening on Impact Investing, have identified ways to make Nigeria’s Energy Transition Plan realistically implemented, in order to address the sector’s many challenges.
They made these submissions at the annual Impact Investing Convening which is sponsored by the Impact Investors Foundation(IIF), in partnership with Bank of Industry (BOI), African Capital Alliance (ACA), BusinessDay Media Ltd and Ford Foundation.
The two-day programme kicked off today at the Oriental Hotels, Lekki, Lagos State, Nigeria’s commercial capital. This year’s convening is the 5th of its series, with “Sustainability” as its theme.
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“The Nigerian government is committed to achieving Just Transition for Nigerians as it launched the Energy Transition Plan (ETP) as one of the major approaches to achieving the net-zero targets by 2060; tackling poverty by lifting over 100 million people out of poverty through driving economic growth, connecting the population to modern energy services, and managing the potential job loss in the oil sector because of global decarbonisation; and addressing climate change and building a more sustainable economy.
“It is estimated that Nigeria requires $ 10 billion annually to implement the ETP by 2060 which amounts to a massive $410 billion. An additional $1.9 trillion is required to attain the country’s net-zero targets,” IIF said, setting the tone for the summit.
“Energy transition plan in Nigeria is not unrealistic but about how it can be implemented. Certain things must be put in place for it to be realistic which include an enabling environment for investment to come into the country and making consistent policy on the exchange rate,” Amaka Opara, founding partner, Women’s Enterprise Acceleration Vehicle, said.
According to Opara, there is a need to look at how realistic the energy transition plan is with a more coherent exchange rate policy that investors can work with. She noted that there is a huge opportunity for state governments to give incentive to investors who want to build mini grids and other investments. While admitting the journey will be tough, she is convinced the task is achievable.
Yemi Osibanjo, Vice President, Federal Republic of Nigeria, represented by Abubakar Aliyu, minister of power, said Nigeria would require about $1.6 trillion to implement Nigeria’s Energy Transition Plan (ETP) between now and 2060.
He said: “For the sake of emphasis, it is relevant to note that Nigeria’s Energy Transition Plan (ETP) would require funding of about $1.9 trillion up to 2060.”
He added that Nigeria would have to mobilise an average of $10 billion annually for the nation’s energy sector as this would enable the realisation of the ETP goal which was recently launched by this administration.
“Nigeria’s Energy Transition Plan is a prime example of the needed evolution of policies to deliver both the growth in energy consumption necessary for development and the climate response required for the preservation of our planet,” Aliyu added.
He added that the policy seeks to tackle the dual crises of energy poverty and climate change, and deliver universal energy access (SDG7) by 2030 and net-zero by 2060.”
“In just transition, everyone has a role to play and we all engage with the government at different levels,” Kalim Shah, country manager, International Finance Corporation, said.
Olumide Idowu, co-founder, International Climate Change Development Initiative said to achieve the desired just transition, there is need to look out for how to build investment opportunities because the young people who are essential in the whole process need enabling empowerment to make it work.
