Energy experts have called on Nigeria to address the $15.8 billion annual funding gap in its energy transition plan to meet its climate goals, highlighting the need for stronger government leadership, stakeholder collaboration, and an inclusive strategy to ensure a Just Energy Transition Plan (JETP)
Speaking at a roundtable discussion on “Accelerating Nigeria’s Energy Transition Through a Country Platform” held in Abuja, Lai Yahaya, Visiting Fellow at the Africa Policy Research Institute (APRI), emphasized that while Global South nations are making strides in renewable energy adoption, significant financing gaps remain.
Yahaya noted that Nigeria has mobilised only $1.9 billion out of the $17.7 billion needed annually to achieve its climate objectives, leaving a major shortfall.
“Despite progress, a significant financing gap remains between the ambition for a fossil fuel transition and the reality of available investment resources. Nigeria has only mobilized $1.9 billion out of the $17.7 billion needed annually for its climate goals.
“This leaves a $15.8 billion annual funding gap, underscoring the insufficiency of current investments in meeting Nigeria’s ambitious NDC targets for climate action.
“Nigeria must urgently address this funding gap to achieve its ambitious Nationally Determined Contributions (NDC) and climate action goals,” Yahaya said.
He added that although Nigeria’s energy transition is crucial for sustainable development, the country faces challenges in securing the necessary investment resources.
Patrick O. Okigbo, Founding Partner at Nextier, also underscored the importance of creating an inclusive platform for Nigeria’s Just Energy Transition (JET).
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He emphasized that the transition should involve the private sector and extractive communities while ensuring strong political leadership and clear financing plans.
“We must place the people and communities at the heart of this process,” he said. Okigbo
Nigeria’s Energy Transition Plan (ETP) aims to reach Net Zero emissions by 2060, but experts warned that the country would need around $410 billion to achieve this goal, with two-thirds of the funds expected to come from the private sector.
To attract this level of investment, Okigbo stressed the need for realistic policies and investment frameworks that create confidence among local and international investors.
Okigbo further highlighted that Nigeria’s energy transition requires upgrading infrastructure, expanding gas pipeline networks, and developing renewable energy capacity. He said that the government must also engage with local communities, particularly in the Niger Delta, to ensure that economic opportunities are provided for those affected by the transition away from fossil fuels.
He also emphasised the need for a well-coordinated strategy and urged the government to build trust with communities and private stakeholders which underscores the importance of inclusive and transparent engagement with local populations.
“We must co-create community-based energy transition strategies that address historical grievances, particularly in extractive communities,” he said,
They also urged the government to address macroeconomic and political uncertainties, develop a comprehensive financial plan, and invest in building the technical capacity of key government agencies.
“The government must now demonstrate its commitment through concrete actions, investments, and coordinated efforts to ensure a sustainable energy future for Nigeria,”
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