The World Bank and the US Exim Bank through Sun Africa, have pledged a record $3billion in support of Nigeria’s Energy Transition Plan.
The Plan aims to achieve universal access to energy by 2030 and a carbon-neutral energy system by 2060, while also accelerating economic growth and development.
Vice President, Yemi Osinbajo, made the announcement yesterday at the global launch of Nigeria’s Energy Transition Plan, saying it is a demonstration of the Federal Government’s commitment to a clean and sustainable future.
Commenting, Nigeria Country Director, World Bank, Shubham Chaudhuri, said: “We plan to commit over $1.5billion towards the Energy Transition Plan on renewable energy, on power sector reforms, on clean cooking, and wherever opportunities arise.”
“The launch of Nigeria’s Energy Transition Plan has further accelerated our efforts, proving Nigeria to be fertile grounds for investments in the sector. We are in the final stages of discussion with US EXIM Bank on a $1.5 billion financing package,” said Adam Cortese, CEO, Sun Africa.
The launch of this Plan showcases Nigeria’s political leadership in the global energy sector, and especially in African and demonstrates the willingness and capacity of the global community in supporting a just, equitable and inclusive energy transition.
At COP26 in Glasgow last year, the President announced Nigeria’s ambition to achieve net-zero by 2060, drawing on insights from the Energy Transition Plan, developed through the Energy Transition Commission to chart the country’s unique pathway.
The transition plan will also provide enough energy to power industry and other productive uses, supported by the Sustainable Energy for All and the COP26 Energy Transition Council (ETC).
Analysis from the Energy Transition Plan shows that Nigeria needs $410 billion above business-as-usual spending across the economy, which translates to about $10 billion per year through to 2060, to achieve its objectives.
Innovation and finance
Given the urgency for accelerated action on climate aligned with the Paris Agreement, Nigeria is looking for more partners in innovation and finance at scale to enable a stable transition and bottom-up transition pathways across energy markets, adaptation and resilience, nature-based solutions, clean cooking, gender, and green jobs.
Speaking, Osinbajo said: “For Africa the problem of energy poverty is as important as our climate ambitions. Energy use is crucial for almost every conceivable aspect of development.
“Although Africa’s current unmet energy needs are huge, future demand will be even greater due to expanding populations, urbanization, and movement into the middle class. It is clear that the Continent must address these energy constraints and would require external support and policy flexibility to deliver this.”
Analysis from the Energy Transition Plan shows that Nigeria needs $410 billion above business-as-usual spending across the economy, which translates to about $10 billion per year through to 2060, to achieve its objectives.
Nigeria has championed the cause for a just, equitable and inclusive energy transition in its role as Global Theme Champion on Energy Transition at the UN High-Level Dialogue on Energy (HLDE).
It also submitted an ambitious UN Energy Compact which featured its immediate priorities to electrify 25 million people across 5 million homes and leverage natural gas resources to address access to clean cooking by 2027.
This ambition is backed by an integrated energy planning tool launched earlier this year which demonstrates how Nigeria will utilize geospatial data and modelling to identify the mix of technologies and spending required to achieve universal energy access.
