EXCLUSIVE: Nigeria Needs $410 Billion for Energy Transition, One of the Highest Among Developing Nations

Nigeria will require a staggering $410 billion to fully transition to clean energy by 2060, according to Senator Abubakar Atiku Bagudu, the Minister of Budget and Economic Planning. 

The figure represents one of the largest financial needs among developing nations pursuing a net-zero emissions future.

Speaking during the Global South Peer Learning Workshop on Country Platforms for Climate Action and Just Energy Transition in Abuja, Bagudu stressed that the scale of Nigeria’s energy transition ambition demands significant global partnership and investment.

“Achieving net-zero emissions by 2060 will require over $410 billion in additional investment. This is not something we can shoulder alone,” Bagudu said.

Nigeria’s Energy Transition Plan (ETP), launched to guide the country’s shift toward a low-carbon economy, outlines major funding gaps in power generation, clean cooking, transportation, and infrastructure. 

Of the $410 billion, at least $23 billion has been identified as investment-ready, but mobilizing the remainder will require robust international collaboration.

Nigeria’s $410 billion target places it among the most financially demanding transitions in the Global South. For comparison:

South Africa, Africa’s most industrialized nation, secured an $8.5 billion Just Energy Transition Partnership (JETP) with international donors in 2021, with further investments projected but still far below Nigeria’s needs; Indonesia, another developing economy with high energy demands, is aiming for $600 billion by 2060, although its energy mix is more reliant on coal than Nigeria’s; India, with a significantly larger population, estimates over $1 trillion will be needed by 2030 alone to meet its renewable energy and emissions targets.

Bagudu emphasized that while Nigeria is committed to the transition, the pathway must be just and equitable.

“Climate justice must take center stage. Developing nations cannot be expected to make the same sacrifices without corresponding support,” he added.

As one of Africa’s largest economies and oil producers, Nigeria’s progress toward clean energy is seen as critical in the continent’s collective fight against climate change.