Nigeria Needs $10 Billion Annually to Fund Energy Transition, Says Tinubu

During the Africa Climate Summit held in Kenya, President Bola Tinubu unveiled a visionary energy transition plan that calls for an annual investment of $10 billion. He passionately stressed that Nigeria, as a nation, requires an annual investment of $17.7 billion to effectively meet the ambitious climate targets outlined in our Nationally Determined Contributions (NDCs).

These NDCs serve as our nation’s comprehensive strategy to not only reduce greenhouse gas emissions but also to adapt proactively to the challenges posed by a changing climate. It reflects our commitment to environmental sustainability on a global scale.

The President’s impactful message was eloquently delivered by Dr. Ishiak Salako, the Minister of State for Environment. Dr. Salako provided further insights into the grand scope of Nigeria’s Energy Transition Plan, revealing that it necessitates a total investment of $1.9 trillion, extending all the way up to the year 2060. This long-term vision underscores Nigeria’s dedication to transforming its energy landscape for a more sustainable and climate-resilient future.

The statement

• In his words during the summit, “In Nigeria, we have articulated our unchanging position to advance climate action without jeopardizing economic development. We designed an ambitious Energy Transition Plan to achieve universal access to energy by 2030 and net-zero emissions by 2060 while prioritizing industrialization, job creation, and economic growth.”
• “Significantly, our plan helps to crystallize the scale of resources needed to deliver climate targets, so that the current financial flows will not suffice. Nigeria’s Energy Transition Plan requires $1.9 trillion in spending up to 2060, including $410 billion above business-as-usual spending.”
• “This additional financing requirement translates to about $10 billion per annum but average international financing flows to Nigeria for clean energy have been about $655 million per year over the past decade.”- Salako noted

Raising capital through JET-Ps

Speaking further, the President talked about the FG’s plan to raise capital through Just Energy Transition Partnerships (JET-Ps) and the government is working to draft a proposal to the G7 for a JET-P for Nigeria.

He said,

• “We recognize that Just Energy Transition Partnerships (JET-Ps) are emerging as an important source of capital for climate-sensitive energy efforts in developing regions and Nigeria wants to be considered for one.”
• “My team is currently working on a proposal to the G7 for a JET-P for Nigeria. It is encouraging that South Africa and Senegal have secured JET-Ps, but they must be scaled up across Africa in addition to other strategic financing opportunities.”

About the Africa Climate Summit

The Africa Climate Summit concluded yesterday with a call from African leaders for a global tax against carbon-emitting countries for development work in countries affected by these emissions and climate change in general.