World Bank, US-Exim Pledge US$3bn To Nigeria’s 2060 Energy Transition Plan

The World Bank and US Export-Import Bank (US Exim), through Sun Africa, have together committed US$3bn to support Nigeria’s Energy Transition Plan, which is part of the Federal Government’s commitment to a clean and sustainable future which was launched on Wednesday by Vice President Yemi Osinbajo.

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. It is supported by Sustainable Energy for All and the COP26 Energy Transition Council (ETC).

Recall that at the COP26 in Glasgow last year, Nigeria’s President Muhammadu Buhari announced the country’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.

Speaking at the launch attended by several government officials, private sector partners, development finance institutions, philanthropies, and international organizations,

According to Professor Osinbajo, “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.

“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.”

Also speaking at the event, Shubham Chaudhuri, Nigeria Country Director, World Bank, said the commitment is towards “the Energy Transition Plan on renewable energy, on power sector reforms, on clean cooking, and wherever opportunities arise.”

For Adam Cortese, Chief Executive Officer of Sun Africa said the launch “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 US$1.5bn financing package.”

The launch according to a statement showcases Nigeria’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.

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.

Analysis from the Energy Transition Plan shows that Nigeria needs US$410bn above business-as-usual spending across the economy, which translates to about US$10bn 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, Mohammed Abdullahi, Minister of Environment; Engr. Abubakar Aliyu, Minister of Power; Babatunde Fashola, Minister of Works and Housing; Mrs. Zainab Ahmed, Minister of Finance; Engr. Ahmad Salihijo, Managing Director, Rural Electrification Agency of Nigeria; as well as Ministers from other African countries, including Dr. Aissatou Sophie Galadima; Minister of Petroleum and Energies, Senegal; and Prof. Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy, Egypt. There were international community leaders including 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.

The 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.

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