Energy experts call on Nigeria to address a $15.8 billion annual funding gap in energy transition plans to meet climate goals, calling for stronger government leadership, stakeholder collaboration and fair energy It emphasizes the need for a comprehensive strategy to ensure a successful transition plan (JETP).
Speaking at a roundtable discussion on “Accelerating Nigeria’s Energy Transition through National Platforms” held in Abuja, Lai Yahaya, Visiting Fellow at the African Policy Research Institute (APRI), said that countries in the Global South are making progress in deploying renewable energy. However, he emphasized the following important issues: Funding gaps remain.
Yahaya noted that Nigeria has mobilized only $1.9 billion of the $17.7 billion needed annually to meet its climate goals, leaving a significant shortfall.
“Despite progress, a significant funding gap remains between the ambition of fossil fuel transition and the reality of available investment resources. Of the $1 billion, only $1.9 billion has been mobilized.
“This creates an annual funding gap of $15.8 billion, highlighting the inadequacy of current investments to meet Nigeria’s ambitious climate NDC targets.
“Nigeria must urgently address this funding gap to meet its ambitious Nationally Determined Contribution (NDC) and climate action targets,” Yahaya said.
He added that Nigeria’s energy transition is critical to sustainable development, but the country faces challenges in securing the necessary investment resources.
Mr. Patrick O. Okugbo, founding partner of Nextier, also emphasized the importance of building a comprehensive platform for Nigeria’s Just Energy Transition (JET).
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He stressed that the transition needs to involve the private sector and mining communities, while ensuring strong political leadership and a clear financial plan.
“We must put people and communities at the center of this process,” he said. Okibo
Nigeria’s Energy Transition Plan (ETP) aims to achieve net-zero emissions by 2060, but experts say reaching this goal will require about $410 billion, with just three percent of the funding It warned that 2 of these are expected to be financed from the private sector.
Mr. Okigbo stressed the need for pragmatic policies and investment frameworks that create confidence among domestic and foreign investors to attract this level of investment.
Mr Okigbo further stressed that Nigeria’s energy transition requires infrastructure upgrades, expansion of gas pipeline networks and development of renewable energy capacity. He said government must also engage with communities, particularly in the Niger Delta region, to ensure economic opportunities are provided to those affected by the transition away from fossil fuels.
He also stressed the need for well-coordinated strategies and urged governments to build trust with local communities and private stakeholders, stressing the importance of inclusive and transparent engagement with local populations. requested.
“We need to co-create community-based energy transition strategies that address historical grievances, especially in extractive communities,” he said.
They also called on governments to address macroeconomic and political uncertainties, develop comprehensive fiscal plans, and invest in building technical capacity in key government agencies.
“Government must now demonstrate its commitment through concrete actions, investments and concerted efforts to secure a sustainable energy future for Nigeria.”
