The Federal Government of Nigeria has identified a staggering $23 billion in investment opportunities aligned with the country’s ambitious Energy Transition Plan (ETP).
The Minister of Power, Adebayo Adelabu, unveiled this information during the 2nd German-Nigerian Symposium on Green Hydrogen held on Monday.
Adelabu emphasized that these opportunities were not only geared towards providing essential electric power for economic development but would also contribute significantly to job creation, foreseeing up to 340,000 new jobs by 2030.
The broader scope of the ETP is projected to generate a remarkable 840,000 jobs by 2060, primarily fueled by advancements in the power, cooking, and transport sectors.
Highlighting the pivotal role of gas in Nigeria’s transition, Adelabu stated, “Gas would play a critical role as a transition fuel in Nigeria’s net-zero pathway, particularly in power and cooking sectors.”
He outlined the potential investment opportunities, stating, “The ETP creates significant investment opportunities such as the establishment and expansion of industries related to solar energy, green hydrogen, and electric vehicles.”
To achieve the ambitious goal of Net Zero by 2060, Adelabu mentioned the need for a substantial investment of $1.9 trillion, including $410 billion above usual spending.
He emphasized that the additional cost, translating to about $10 billion annually, aligns with the identified $23 billion investment opportunity related to ongoing in-country programs and projects directly associated with the Just Energy Transition.
Quoting Adelabu, “A $23 billion investment opportunity has been identified based on current in-country programs and projects that are directly related to the Just energy transition.”
Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, stressed the significance of gas as a transition fuel.
However, he expressed concerns about the current challenges in gas commercialization and utilization policies in Nigeria.
Orji pointed to NEITI’s recent report revealing a total unremitted revenue of over $8.2 billion, with outstanding amounts from gas royalties and unpaid gas flare penalties.
Quoting Orji, “NEITI is working closely with the Nigerian Upstream Petroleum Regulatory Commission on its ongoing gas commercialization policy to ensure transparent and effective implementation to reverse the trend of gas flare.”
Ambassador Annett Günther of Germany underscored the commitment of both Germany and Nigeria to driving the production and use of hydrogen.
Referencing German Chancellor Olaf Scholz’s recent visit to Nigeria, she stated, “The energy partnership between both nations is not only about traditional fossil fuels but also about hydrogen, the gas of the future.”
Markus Wagner, the Country Director of GIZ Nigeria and ECOWAS, emphasized the revolutionary potential of green hydrogen in transforming the energy landscape. “It offers a path to reducing carbon emissions, diversifying energy sources, and boosting economic growth,” he said.
Quoting 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.”