Nigeria Considers $400 Billion Expenditure To Boost Energy Requirements, Achieve Zero Emissions 

Yemisi Izuora

The Federal Government has projected a $400 billion expenditure to meet its energy requirements and achieve zero emissions from fossil fuel.

The bulk of the money  $310 billion is required to build electricity generation, transmission and distribution infrastructure, and $75 billion is needed for buildings, Bloomberg quoted President Muhammadu Buhari as saying in emailed statement.

Another $41 billion will help fund industry and transport facilities.

The president didn’t indicate a timeframe for the spending plan, though Nigeria would require the support of developed countries to bridge the funding gap, which exceeds the country’s yearly energy budgets for the next 30 years, he said.

Buhari, who addressed the United Nations General Assembly this week, is under pressure to show how Africa’s most populous nation will ultimately transition away from carbon fuels.

With the funding needs almost matching the size of country’s gross domestic product last year, his press release amounted to a statement of indefinite goals, unachievable to him without massive outside assistance.

Under the Paris Climate Agreement, Nigeria has pledged to cut carbon emissions by 20 per cent over the next decade as part of an effort to overcome its energy challenges.

While the government is encouraging the private sector to invest in electricity to end blackouts, it’s also injecting 10 per cent of the 2.3 trillion naira ($5.6 billion) intended to spur a recovery from the coronavirus pandemic toward providing solar power for households.

The government plans to provide electricity to 5 million households and 20 million people using solar energy solutions, as a first step toward closing the country’s energy access deficit by 2030, the president said.

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