Nigeria’s Energy Transition Plan: Design and Execution

Climate change has become a global affair. However, it has recently attracted more attention due to the havoc it has wrecked in countries regarding floods caused by rising air temperatures and the consequent hardships it has imposed. In Nigeria, the devastating impact of climate change is aggravated by the energy poverty within the country, negatively affecting all sectors and its overall development. In response to the call for environmentally friendly practices, former President Muhammadu Buhari launched the Nigeria Energy Transition Plan (NETP). It is an initiative first targeted at Nigeria’s economic development through improved energy access. The NETP is a strategy developed to achieve Net-Zero emissions by 2060 and climate change, among other objectives. It sets a framework for reducing carbon and methane emissions across the oil and gas, power, transportation, cooking and industry sectors.

The NETP, on which the 2060 Net-Zero promise at COP26 was based, has been fully authorised by the Federal Executive Council since the NETP’s release. Nigeria has taken several actions to support this novel initiative as it sets out to lead climate action in Africa. These actions include establishing the Energy Transition Office and Energy Transition Working Group (ETWG) led by former Vice President Yemi Osinbajo (SAN), including several important ministers. The Ministers for Environment, Finance, Power, Works and Housing, Petroleum, and Foreign Affairs make up the key members of the ETWG. The Nigeria Energy Transition Office (ETO) supports Sustainable Energy for All (SEforALL) and the Global Energy Alliance for People and Planet (GEAPP). The Office of the Vice President currently oversees the ETO’s operations. The significant insights for the NETP are to provide over 340,000 jobs by 2030 and 840,000 jobs by 2060, mainly through the power, cooking and transport sectors.

Also, the critical transition fuel for Nigeria’s net-zero pathway is gas, particularly in the cooking and transport industries. According to the ETO, $1.9 trillion, including a $410 billion projected spending, is required to drive net-zero emissions by 2060, translating to $10 billion annually. Nigeria’s energy transition offers investment prospects, including establishing and expanding solar energy, hydrogen, and electric vehicle industries. Though laudable, the plan fails to provide details on the implementations, reforms and step-wise action plan to achieve this remarkable feat. Moreover, the uncertainty of the NETP further worsens Nigerians’ lingering fears about the program’s continuity due to the newly inaugurated administration.

A report by the World Resources Institute disclosed that about 90 countries had set the net zero plan, but only five of these countries are on track to meet the target. This implies that many countries, Nigeria inclusive, struggle to align their physical planning budgeting process, among others, towards achieving net zero because it’s an economy-wide transition plan. Stakeholders must identify approaches to tackle the challenges and harness the opportunities the energy transition plan provides. Developing policies aligning with the Integrated Resource Plan will determine the potential elements to achieve this goal. These elements include financing, technological needs, international policies, market development, and resilience strategies. Accountability mechanisms and constructive discussions with policymakers and government officials to identify the best pathways towards achieving net zero targets are also crucial.

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