Nigeria requires $410 billion to accomplish energy transition plan by 2060.

by Vincent Godstime

Nigeria will need to spend over 410 billion dollars by 2060 to complete its energy transition plan. A statement made by vice president Yemi Osinbajo’s spokesperson Laolu Akande, meanwhile, said he spoke at an inaugural speech addressing Nigeria’s Energy Transition Plan on the global stage. The plan is a roadmap for how to tackle both the dual crises of energy poverty and climate change in Nigeria.

The vice president highlighted the significant scale of resources required to attain both development and climate ambitions. He said that Africa’s growing energy gap required collaboration to take ownership of the continent’s transition pathways, and the action should be decisive and urgent.

Energy poverty is as important for Africa as our climate ambitions.

The consumption of energy is crucial for almost every aspect of development. Wealth, health, nutrition, water, infrastructure and education are all significantly related to the consumption of energy per capita.

Nigeria would need to spend an additional 410 billion dollars each year to deliver our transition plan by the year 2060. That averages out to about 10 billion dollars per year.

“The average 3 billion dollars per year investments in renewable energy recorded for the whole of Africa between 2000 and 2020 will not be enough,” he said.

As Vice President of the US, he chaired the Energy Transition Implementation Working Group.

According to him, the organization is currently engaging with partners to secure an initial 10 billion dollar support package ahead of COP27. Speaking on how climate change affects Africa, Osinbajo explained that climate change threatens crop productivity in regions that were already food insecure, and since agriculture provides the largest number of jobs, reduced crop productivity will only worsen unemployment rates.

“We can’t keep delaying; other countries are already taking action. African nations are rising to the challenge, Pakistan and India have both pledged to stop emitting within a decade.

Current power shortages are causing real issues with people’s livelihoods, and they’re destroying the dreams of hundreds of millions. We need to fix our electricity problem as soon as possible.

Africa’s energy demand is growing, and it will continue to grow as populations expand, cities grow and people become more affluent.

“It is clear the continent’s policies must change in order to address its energy constraints. External support and policy flexibility are needed to deliver this.”

“Unfortunately, in the wider responses to the climate crisis, we are not seeing careful consideration and acknowledgement of Africa’s aspirations.”

Mr. Osinbajo explained that the plan had the potential to create 340,000 jobs by 2030 and 840,000 by 2060. Furthermore, he said it would present a unique opportunity to deliver a true low-carbon development in Nigeria’s largest economy.

Shubham Chaudhuri, the Nigeria Country Director for World Bank, said at the virtual event that over 1.5 billion dollars would be committed from the Bank’s resources towards renewable energy and reforms in power generation, clean cooking, and any opportunities related to these areas.

CEO Adam Cortese of Sun Africa said, “The inauguration of Nigeria’s Energy Transition Plan has accelerated our plans to work in the Nigerian energy sector.”

“We are in the final stages of discussion on a $1.5 billion deal with the US EXIM Bank,” he said.

The speakers at the event commended Nigeria’s leadership and pioneering role in the region. They emphasized the need for country-level energy plans that take into account the unique pathways each country would need to take in order to achieve a just, inclusive, and equitable energy transition for all. There were also remarks from Nigerian Ministers and officials, including the Minister of Energy, Mohammed Abdullahi; Minister of Environment, Abubakar Aliyu; Minister of Power and Works, Babatunde Fashola; Finance minister, Zainab Ahmed; Managing Director of Rural Electrification Agency, Ahmad Salihijo. Other speakers included Deputy Secretary-General of UN, Amina Mohammed; Minister of Petroleum and Energies from Senegal Sophie Gladima; Minister of Electricity and Renewable Energy from Egypt Mohamed El-Markabi. Representatives from The UN , Sustainable Energy for All (SE4ALL), The World Bank, ADB, IRENA – International Renewable Fuel Association (IRENA) , Rockefeller Foundation & Global Energy Alliance for People and Planet attended the event as well.(NAN)


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