The Federal Government yesterday sought global support for its Energy Transition Plan, ETA, estimated to cost about $1.9 trillion in the next 60 years.
The plan, which requires an investment of $10 billion annually to fund projects in mini-grids and renewable energy sectors, also aims at de-carbonising Nigeria’s hydrocarbons.
Speaking at the opening ceremony of the ECOWAS Sustainable Energy Forum, ESEF, part of the International Energy Transition Week – Nigeria, Vice President Yemi Osinbajo lamented that despite the global push for energy transition, very little funding had been channeled to African countries.
Prof. Osinbajo, who was represented by the Minister of Power, Abubarkar Aliyu, noted that lack of access to finance remained the biggest challenge for accelerating action on energy access and climate goals in Africa.
He said: “Only 2%, about USD60 billion, of the USD2.8 trillion invested in renewable energy from 2000 to 2020 came to Africa.
The West African region received just 7% of that, about USD4 billion. To reach our goals, sufficient capital must be made available in the region, and we must do our part in creating the enabling environment for these funds.
“For the sake of emphasis, it is relevant to note that Nigeria’s Energy Transition Plan (ETP) would require funding of about USD1.9 trillion up to 2060. USD410 billion of this amount is above usual spending and implies that we need to mobilize an additional USD10 billion per annum.“
The success of universal energy access and carbon neutrality is dependent on effectiveness in crowding in these investments.
“Our government plans to roll out a set of policy measures that would attract financing and investments of up to USD10 billion and create scalability of programs of over USD30 billion over the coming decades.
These policy measures and programs would be leveraged on, to catalyze the Nigeria ETP specifically on renewable power.”
Earlier, the President of the ECOWAS Commission, Dr. Omar Touray, disclosed that about half of ECOWAS citizens lacked access to modern energy service, adding that in the rural areas, just 10 per cent had access to clean energy.
energy security need to be addressed and that access to financing and technology are crucial if we want to succeed.
”If the EU is the world’s leading actor in climate change, it is not only because of the ambitious goals that we have set for ourselves, but also of our commitment to help others to attain this.
“During the African Union/European Union summit we launched the EU EU Africa Global Gateway investment package with the Africa EU Green Energy Initiative as a key component to consolidate existing investments or to launch new ones.
“In the framework of the new world, the annual indicative programme 2021 2027 of the EU, we are planning to allocate 600 million Euros of grants funding in the sustainable energy sector in West Africa alone.
”The EU considers equity and I quote from the message that I have been asked to convey as a key partner in the domain of sustainable energy and has the wish and the vision for a close cooperation in the future”.