Achieving Nigeria’s ETP

As the world migrates towards an eco-friendly environment, several nations, including Nigeria, have pledged to contribute to a low-carbon economy. For this reason, the Nigerian government launched the Energy Transition Plan (ETP). The ETP establishes the country’s strategy to reach a net-zero emissions energy system by 2060 whilst improving energy access. However, developing supporting policies is critical in achieving Nigeria’s ETP.

In 2023, 92 million Nigerians still lack access to stable, clean, reliable electricity. At the same time, the world is also experiencing the grave effects of climate change, as seen in changes in weather patterns associated with social-economic effects, etc. Hence, more than before, energy transition plans are crucial and cannot be treated with a business-as-usual approach.

Achieving Nigeria’s ETP will require the adoption of clean technologies. Integrating solar and wind into the energy mix is a way to reduce the country’s reliance on fossil fuels while closing the energy gap. The ETP also seeks to adopt innovations like electric vehicles and stoves, irrespective of income strata.

Unfortunately, over 40% of Nigerians live in poverty. As a result, there is more demand for cheap cooking fuels with the low upfront cost, such as firewood, charcoal, etc., regardless of their carbon footprints. For example, studies have shown income to be the determining factor for adopting clean cooking facilities. Given this, research on low-carbon energy solutions for low-income households is needed, especially in the rural areas of Nigeria, to identify appropriate and affordable low-cost technologies.

Policies are needed to promote technological innovations that support the Nigerian ETP. Although the country has several policies on renewable energy integration into the energy mix, these policies have different targets. To ensure that the ETP is implemented successfully, it is crucial to have relevant institutions coordinate and harmonize these policies, strategies, and targets. More frameworks that promote deploying renewable energy technologies should be developed, including incentives for renewable energy investments, such as tax credits and feed-in tariffs, to encourage private sector investments in renewable energy.

Finally, there is a need for the development of innovative financing mechanisms to support cost reduction in deploying clean energy technologies. Access to finance is often a significant barrier, particularly for small and medium-scale enterprises (SMEs). Innovative financing mechanisms, such as green bonds and banks, can help mobilize private sector finance for renewable energy projects.

Also, given the escalating debt situations of many developing countries, including Nigeria, especially in the aftermath of COVID-19 and the Russian- Ukrainian conflict, Nigeria can consider Debt for Climate Swaps in her climate finance mix.

Whilst the ETP is commendable, Nigeria’s past efforts to make its energy system more sustainable through policies, such as the Nigerian Renewable Energy Master Plan, among others, have fallen short of their goals. To avoid repetition, challenges like financial barriers, lack of technical expertise, and the issue of grid integration, particularly with intermittent renewable energy sources like solar and wind power, must be addressed. Energy stakeholders need to collaborate to deploy innovative technologies tailored to respond to the population’s power needs.

The above-outlined actions are not exhaustive but can help in achieving Nigeria’s ETP. The ETP requires significant investments from the government and support from its citizens. A large part of the populace is more concerned with providing their “daily bread” than with reducing their carbon footprint. To implement the ambitious target enshrined in the ETP, the government must develop programs to break the perpetual cycle of poverty, increasing citizens’ ability to purchase climate-friendly technologies.