Nigeria Estimates $23bn Investment Opportunities In Energy Transition Plan
The Nigerian Government says it has identified about $23 billion in investment opportunities in the country’s Energy Transition Plan, (ETP).
The Minister of Power, Adebayo Adelabu who disclosed this in a message at the 2nd German-Nigerian Symposium on Green Hydrogen said the opportunities would not only provide electric power for economic development but that it would result in significant net .job creation with up to 340,000 jobs by the year 2030.
The Minister of Power who was represented by Mr. Abubabar Ali-Dapshima, Director, Renewable Energy and Rural Power Access Department, Nigerian Ministry of Power, emphasized the important role green energy plays in boosting the expansion of renewable energies in the country and its potential impact on power generation.
He said the ETP will create up to 840,000 jobs by 2060, driven mainly by power, cooking and transport sectors and that gas will play a critical role as a transition fuel in Nigeria’s net-zero pathway, particularly in power and cooking sectors.
“The ETP creates significant investment opportunities such as the establishment and expansion of industries related to solar energy, green hydrogen, and electric vehicles”.
Adelabu said that “$1.9 trillion is required to get Nigeria to Net Zero by 2060, including $410 billion above usual spending. This additional cost translates to about $10bn annually. A $23bn investment opportunity has been identified based on current in-country programmes and projects that are directly related to the Just energy transition”.
The Ambassador of the Federal Republic of Germany to Nigeria, Mrs. Annett Gunther said Germany and Nigeria are both committed to driving the production and use of hydrogen.
She said “In collaboration with Nigeria, we can drive future production and utilisation of hydrogen, which will benefit our economies and contribute to a smooth energy transition.’’
Gunther said “This symposium is a platform for meaningful dialogue, collaboration, and knowledge sharing, and I encourage all participants to take full advantage of this opportunity to jointly explore the possibilities, share insights, and facilitate the growth of low-carbon hydrogen as a key enabler in achieving our climate and energy transition goals”.
The envoy noted that the German Chancellor, Olaf Scholz’s recent visit to Nigeria, in which he highlighted the energy partnership between both nations, was not only about traditional fossil fuels but also about hydrogen, the gas of the future.
The Country Director, GIZ Nigeria and ECOWAS, Dr Markus Wagner, in his remarks, he said that, “it is crucial to recognise that green hydrogen has the potential in revolutionising the energy landscape.
“It offers a path to reducing carbon emissions, diversifying energy sources, and boosting economic growth.According to Wagner, “Nigeria and Germany share a long and fruitful history of cooperation in the energy sector and GIZ has been an active partner in this journey, working alongside Nigerian institutions and partners to drive positive change,”
The Nigerian Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo in a message at the Symposium, said harnessing the country’s resource potential will provide alternative sources of energy and protect the environment.
The Minister who was represented by Mrs Oluremi Komolafe, said considering Nigeria’s commitment to achieving Net zero emission by 2060, Hydrogen provides a pathway for the decarbonization of the Nigerian energy sector.
Ekpo said “This particular Symposium is important because of the economic benefits of Hydrogen development which include harnessing the resource potential of the country such as natural gas, wind, solar that will ultimately provide alternative sources of energy with cost reduction and also help our environment.’’
The Minister said “It will also create jobs along the Hydrogen value chain and that Nigeria will also benefit from development of indigenous
capabilities of Hydrogen technologies thereby supporting research and development projects and attracting investment and business opportunities for to the country”.
Mr. Ekpo however said putting in place a policy for Hydrogen is critical to development in order to accomplish the benefits that come with it.
He said “Moreover, investors need a clear policy framework to be committed to Hydrogen development”.
The Minister of State, Environment and Ecological Management, Dr. Iziak Salaco recognised that Nigeria’s planned accession to the African Green Hydrogen Alliance will enhance regional cooperation that will contribute to Nigeria’s efforts to meet its Net Zero targets.
The Executive Secretary, Nigeria Extractive Industries Transparency Initiative, NEITI, Ogbonnaya Orji, said gas had the potential to produce blue hydrogen, which, though not as clean as green hydrogen, will be useful in Nigeria’s journey towards cleaner energy sources.
“And sadly Nigeria is still battling to put in place and embrace efficient gas commercialisation and utilisation policy. For instance, NEITI’s recent report disclosed total unremitted revenue of over $8.2bn. These revenues arose from liabilities of government agencies and oil/gas companies.
“A breakdown of the unremitted payments in our report showed outstanding gas royalty of $559.8m and another unremitted sum of $828.8m from unpaid gas flare penalty which indicated that more gas was flared during the period than utilized, posing serious dangers to the global zero emissions agenda.
Orji stated that “NEITI is working closely with the Nigerian Upstream Petroleum Regulatory Commission in its ongoing gas commercialisation policy to ensure transparent and effective implementation to reverse the trend of gas flare,”.
The Symposium was attended by high-profile speakers in the energy sector and delegations from Nigeria and Germany.
The Hydrogen Office which was established in 2021 to expand the activities of the German-Nigerian Energy Partnership is financed by the German Federal Foreign Office and implemented by GIZ.
It forms a part of the Global Hydrogen Diplomacy (H2-Diplo) project, which is implemented by the Deutsche (GIZ) GmbH and financed by the Federal Foreign Office (AA).
Olusola Akintonde
