The Federal Government is promoting private sector investment opportunities in Energy Transition Plan, which has identified initial $23 billion investment opportunity across a portfolio of projects.
Under the plan, $17 billion is estimated as funding required through the private sector, across generation, transmission, distribution, metering, gas commercialization, clean cooking, e-mobility, and healthcare.
The Energy Transition initiative is specifically designed to tackle the dual crises of energy poverty and climate change and reach net-zero status by 2060, while also providing energy for development, industrialization, and economic growth.
In an interactive session on opportunities and challenges in Nigeria’s Energy Transition Plan, in Lagos experts are of the opinion that to deliver net-zero target by 2060, Nigeria requires ~$410 billion above business-as-usual spending (between 2021 – 2060); $150 billion net spend on generation capacity, $135 billion on transmission and distribution infrastructure, $79 billion on cooking, $21 billion on industry, $12 billion on transport and $12 billion on oil and gas decarbonisation.
To help consolidate efforts towards energy transition, a private sector-focused roundtable was convened which discussed the role of the organized private sector in the country’s Energy Transition Plan, and how to chart a path forward.
Organised by the Energy Transition Office who are funded by Sustainable Energy for ALL (SEforALL) and Global Energy Alliance for People and Planet, the meeting brought together stakeholders from the private sector and government to discuss the challenges and opportunities available in Nigeria’s Energy Transition Plan.
With the help of private sector actors, the group will work to develop an implementation framework that will enable Nigeria achieve the financing objectives of the ETP.
Lanre Shasore, Senior Special Assistant, SSA to the President on Planning and Coordination, set the pace for the meeting by giving a brief history of the Energy Transition Plan.
This was followed by the welcome remarks from Dr. Muntaqa Umar-Sadiq, Head/Principal Finance Specialist at the Energy Transition Office. He highlighted that the ETP lays out a comprehensive roadmap for Nigeria’s energy transition, and emphasized the need for private sector engagement in the form of co-creation and alignment to raise the funds required to achieve the country’s net zero goal by 2060. This crucial role he believes, will help the government overcome bottlenecks and mobilize the necessary resources.
Various players from the energy, finance and legal sectors participated in the meeting, as well as other experts who shared their insights and experiences on the challenges and opportunities presented by the energy transition.
The interactive session on Investment Opportunities in the Nigerian Energy Transition Plan featured at the roundtable.
The session was moderated by Tariye Gbadegesin, CEO, ARM-Harith Infrastructure Fund. Tariye guided the participants in approaching the Energy Transition agenda from a bottom-up perspective, focusing on sectorial themes such as power, transport, gas transition, manufacturing, and transmission.
As part of the discourse, participants highlighted the need for innovative financing models and the role of public-private partnerships in recognising value chains across verticals. In line with this commitment, a private sector working group was formed to support energy transition in the country.
The group, which will leverage its expertise and network, will help mobilise funds and promote innovative financing models that can accelerate the adoption of renewable energy technologies.
After considerable deliberations and constructive dialogue, Somkele Awa-Kalu emphasized the ETO’s openness to collaboration, which was also echoed by Dr. Muntaqa Umar-Sadiq, Head of the ETO. Dr. Umar-Sadiq recommended that the Private Sector Working Group meet virtually on a monthly basis and hold physical meetings quarterly.
Speakers and attendees included Ahmad Salihijo, MD of Rural Electrification Agency, Chinua Azubike, CEO of Infracredit, Victor Adamu, TA to the President on Infrastructure, Hakeem Shagaya of Sun Africa, Nana Maidugu, Head of ESG at Nigerian Sovereign Investment Authority, Sola Carrena of Helios Investment, Tunde Gbajumo (Chief of Party, Power Africa), Banjo Alimi, Ayo Falola and Seyi Okunnuga of Sterling Bank, Dr. Uzo Egbuche of Climate Finance Accelerator, Muhammad Wakil of GEAPP, Joshua Adedeji of Innovate UK-KTN and Yemisi Awonuga, Partner at Templars Law, among other key stakeholders.
Throughout the meeting, these speakers highlighted the importance of collaboration between the public and private sectors, as well as the need to leverage innovative financing mechanisms to mobilize investment that will help drive energy transition in Nigeria.