Nigeria secures $3b from world Bank and US Exim Bank for implementation of net-zero by 2060

The Federal Government of Nigeria has demonstrated its commitment to a clean and sustainable future with the global launch of the country’s Energy Transition Plan.

At the launch event, hosted by His Excellency, The Vice President of Nigeria Prof. Yemi Osinbajo SAN, announcements amounting to about $3 billion were made in support of this plan by The World Bank and by US Exim Bank through Sun Africa.

“We plan to commit over $1.5 billion towards the Energy Transition Plan on renewable energy, on power sector reforms, on clean cooking, and wherever opportunities arise,” said Shubham Chaudhuri, Nigeria Country Director, World Bank. 

“The launch of Nigeria’s Energy Transition Plan has further accelerated our efforts, proving Nigeria to be fertile grounds for investments in the sector. We are in final stages of discussion with US EXIM Bank on a $1.5 billion financing package,” said Adam Cortese, CEO, Sun Africa. 

The launch of the plan, attended by several government officials, private sector partners, development finance institutions, philanthropies, and international organizations, showcases the country’s political leadership in the global energy sector, and especially on the African Continent and demonstrates the willingness and capacity of the global community in supporting a just, equitable and inclusive energy transition. 

At COP26 in Glasgow last year, His Excellency President Buhari announced Nigeria’s ambition to achieve net-zero by 2060 drawing on insights from the country’s Energy Transition Plan which was developed through the Energy Transition Commission to chart out Nigeria’s unique energy transition pathway. The Plan supports the country’s objectives of achieving universal access to energy by 2030 and a carbon-neutral energy system by 2060, while also providing enough energy to power industry and other productive uses. The Plan is supported by Sustainable Energy for All and the COP26 Energy Transition Council (ETC).

Given the urgency for accelerated action on climate aligned with the Paris Agreement, Nigeria is looking for more partners in innovation and finance at scale to enable a stable transition in energy markets and bottom-up transition pathways across energy markets, adaptation and resilience, nature-based solutions, clean cooking, gender, and green jobs. 

“For Africa the problem of energy poverty is as important as our climate ambitions. Energy use is crucial for almost every conceivable aspect of development,” said His Excellency Professor Yemi Osinbajo, SAN, Vice President of Nigeria, speaking at the launch.

“Although Africa’s current unmet energy needs are huge, future demand will be even greater due to expanding populations, urbanization, and movement into the middle class. It is clear that the Continent must address these energy constraints and would require external support and policy flexibility to deliver this”.

Analysis from the Energy Transition Plan shows that Nigeria needs USD 410 billion above business-as-usual spending across the economy, which translates to about USD 10 billion per year through to 2060 in order to achieve its objectives. 

Nigeria has championed the cause for a just, equitable and inclusive energy transition in its role as Global Theme Champion on Energy Transition at the UN High-Level Dialogue on Energy (HLDE), and submitted an ambitious UN Energy Compact which featured its immediate priorities to electrify 25 million people across 5 million homes and leverage natural gas resources to address access to clean cooking by 2027. This ambition is backed by an integrated energy planning tool launched earlier this year which demonstrates how Nigeria will utilize geospatial data and modelling to identify the mix of technologies and spending required to achieve universal energy access.

The launch also featured remarks from prominent Nigerian Ministers and officials, including, Hon. Mr. Mohammed Abdullahi, Minister of Environment, Hon. Engr. Abubakar Aliyu, Minister of Power, Hon. Mr. Babatunde Fashola, SAN, Minister of Works and Housing, Hon. Ms. Zainab Ahmed, Minister of Finance, Engr. Ahmad Salihijo, Managing Director, Rural Electrification Agency of Nigeria, as well as Ministers from other African countries, including Hon. Dr. Aissatou Sophie Gladima, Minister of Petroleum and Energies, Senegal, and Hon. Prof. Dr. Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy, Egypt, and international community leaders including from the United Nations, Sustainable Energy for All, The World Bank, African Development Bank, IRENA, The Rockefeller Foundation and the Global Energy Alliance for People and Planet.

All speakers commended Nigeria for their leadership and pioneering role in the region, emphasizing the need for data-driven country-level energy transition plans that recognise the unique pathways each country would need to take in order to achieve a just, inclusive and equitable energy transition for all.