Nigeria seeks improved access to electricity, poverty power with Energy Transition Plan For long, the African continent has been beset with excruciating energy challenges. Across the countries that make up the continent, over 600 million people lack access to electricity while as many as 900 million are believed to live without access to clean cooking energy. Nigeria, the world’s largest black nation, is heavily impacted by these challenges. In an effort to ensure that electricity is made more available and accessible to more Nigerians, the Federal Government recently launched the Energy Transition Plan (ETP) in Abuja.
Many have noted that of all previous efforts by African governments to provide access to electricity for all, the recent global launch of Nigeria’s Energy Transition Plan (ETP), is the most audacious, coordinated and courageous move to attain the goal.
Stakeholders in the energy sector, as well as global leaders across the continent, were unanimous in their verdict at the launch that with adequate investments, Nigeria and Africa could attain universal access to energy by 2030 as well as a carbon-neutral energy system by 2060. These goals, they noted, would boost economic development and eradicate poverty
The event, held on Wednesday August 24, was hosted by the Vice President, Professor Yemi Osinbajo. Several government officials, private sector partners, development finance institutions, philanthropies, and international organisations It was the day the Nigerian government made a bold statement about its commitment to a clean and sustainable future with the global launch. At the event, there were announcements of possible future support by partners. The World Bank made a commitment of $1.5 billion. Another $1.5 billion financing package from a US-based financial institution is also in the offing.
Experts said the ETP 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 to support a just, equitable and inclusive energy transition.
While speaking at the COP26 in Glasgow last year, President Buhari had 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 Energy Transition 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 Energy Transition Plan is supported by Sustainable Energy for All and the COP26 Energy Transition Council (ETC).
At the global launch in Abuja, the conveners of the event highlighted some objectives that the ETP will achieve. They noted that the plan demonstrated Nigeria’s commitment and ambition in achieving carbon neutrality while also ending energy poverty. The plan, it is believed, has the capacity to lift 100 million people out of poverty, drive economic growth, and bring modern energy services to the entire population; create awareness to drive demand in other African countries by emphasising the need for data-driven country-level energy transition plans in order to achieve a just, inclusive and equitable energy transition for all ahead of the ‘African COP’ hosted by Egypt; mobilise new partners by showcasing existing support for data-driven energy transition planning from international partners, including Sustainable Energy for All, The World Bank, The Rockefeller Foundation, and the Global Energy Alliance for People and Planet; mobilize investors and the private sector by showcasing concrete projects to deliver the transition goals while creating significant market opportunities; and to announce new opportunities for solar energy companies to obtain results-based finance from the Universal Energy Facility as part of a new financing window focused on supporting Stand-Alone Solar for Productive Use.
In his speech, the chief host, Vice President Osinbajo, informed the guests that Nigeria is seeking $10 billion from international partners to fund the nation’s new Energy Transition Plan, annually. Osinbajo said a roadmap to tackle the dual crises of energy poverty and climate change is by engaging with partners to secure an initial $10 billion support package ahead of COP27 along the lines of the South African Just Energy Transition Partnership announced at COP26 in Glasgow.
His words: “Nigeria would need to spend $410 billion above business-as-usual spending to deliver our Transition Plan by 2060, which translates to about $10 billion per year. Also, Africa’s increasing energy gaps require collaboration to take ownership of the continent’s transition pathways. And the action should be decisive and urgent.
“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. Wealth, health, nutrition, water, infrastructure, education, and life expectancy are significantly related to the consumption of energy per capita.”
While highlighting the significant scale of resources required to attain both development and climate ambitions, Osinbajo informed that the average $3 billion per year investments in renewable energy recorded for the whole of Africa between 2000 and 2020 was certainly not enough. He noted that the Nigeria Energy Transition Plan was designed to tackle climate change and deliver SDG7 by 2030 and net-zero by 2060, while centring the provision of energy for development, industrialisation and economic growth.
“We anchored the plan on key objectives including lifting 100 million people out of poverty in a decade, driving economic growth, bringing modern energy services to the full population and managing the expected long-term job losses in the oil sector due to global decarbonisation.
“Given those objectives, the plan recognises the role natural gas must play in the short term to facilitate the establishment of baseload energy capacity and address the nation’s clean cooking deficit in the form of LPG.
“The plan envisions vibrant industries powered by low-carbon technologies; streets lined with electric vehicles and livelihoods enabled by sufficient and clean energy.” While speaking on other aspirations of the roadmap, the Vice President explained that the plan has the potential to create about 340,000 jobs by 2030 and 840,000 by 2060. It also presents a unique opportunity to deliver a true low-carbon and rapid development model in Africa’s largest economy, he stated.
“We are currently implementing power sector initiatives and reforms focused on expanding our grid, increasing generation capacity, and deploying renewable energy to rural and underserved populations,” he noted. Aside from the transition plan, the Vice President announced the launch of the Universal Energy Facility, described as “an innovative, results-based, finance programme that focuses specifically on scaling up electricity access for productive uses.”
He explained further: “The Universal Energy Facility will provide grant payments to enable solar companies to expand their operations to small and medium-sized enterprises across Nigeria, while crowding-in additional private capital.
“Projects supported by the Universal Energy Facility will help grow businesses and create jobs, making them key contributors to our Energy Transition Plan. I’d like to encourage solar companies in attendance today to engage with this innovative financing opportunity, which is being managed by Sustainable Energy for All.”
Osinbajo also spoke on the effects of Climate Change in Africa. Hear him: “Climate change threatens crop productivity in regions that are already food insecure, and since agriculture provides the largest number of jobs, reduced crop productivity will worsen unemployment.
“It is certainly time for decisive action, and we just cannot afford to delay. African nations are rising to the challenge. All African countries have signed the Paris Agreement and some countries – South Africa, Sudan, Angola, and Nigeria have also announced net-zero targets.”
Lamenting the dire energy poverty on the African continent, Osinbajo said: “The current lack of power hurts livelihoods and destroys the dreams of hundreds of millions of young people.
“And although Africa’s current unmet energy needs are huge, future demand will be even greater due to expanding populations, urbanisation and movement into the middle class.
“It is clear that the continent must address its energy constraints and would require external support and policy flexibility to deliver this. Unfortunately, in the wider responses to the climate crisis, we are not seeing careful consideration and acknowledgement of Africa’s aspirations.”
Emphasising the importance of collaboration, he noted that, “we developed our Energy Transition Plan to engage with the rest of the world in a serious, thorough and data-backed manner. There is a clear need for African nations to engage more critically and vocally in conversations on our global climate future.
“More importantly, we need to take ownership of our transition pathways and design climate-sensitive strategies that address our growth objectives. This is what Nigeria has done with our Energy Transition Plan.”
Nigeria Country Director for World Bank, Mr. Shubham Chaudhuri announced that the multilateral institution plans, “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.”
Lending his voice to the commitment, the CEO, Sun Africa, Mr. Adam Cortese said that, “the launch of Nigeria’s Energy Transition Plan has further accelerated our efforts, proving Nigeria to be fertile grounds for investments in the sector. Other speakers at the event commended Nigeria’s leadership and pioneering role in the region, noting 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. The global launch also featured remarks from Nigeria’s Ministers and officials, including, Ministers of Environment: Mr Mohammed Abdullahi, Power; Abubakar D. Aliyu, Power (State); Mr Goddy Jedy-Agba, Works and Housing; Mr Babatunde Fashola, Finance, Budget and National Planning; and Mrs Zainab Ahmed, Finance. There was also the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mr Mele Kyari; and the Managing Director, Rural Electrification Agency, Engr. Ahmad Salihijo.
Other speakers included the Deputy Secretary-General, United Nations, Amina J. Mohammed; Minister of Petroleum and Energies from Senegal, Dr. Aissatou Sophie Gladima; Minister of Electricity and Renewable Energy from Egypt, Prof. Dr. Mohamed Shaker El-Markabi; UN Secretary-General’s Special Envoy for Climate Ambition and Solutions, Mr Michael Bloomberg; as well as representatives of the United Nations, Sustainable Energy for All, The World Bank, African Development Bank, The International Renewable Energy Agency (IRENA), The Rockefeller Foundation and the Global Energy Alliance for People and Planet.