The World Bank and the US Export-Import Bank (Exim Bank) through Sun Africa have committed $3 billion in investment to Nigeria’s energy transition plan.
The goal of Nigeria’s Energy Transition Plan is to achieve universal access to energy by 2030 and a carbon-neutral energy system by 2060, while also accelerating economic growth and development.
Mr Laolu Akande, Senior Special Assistant to the President on Media & Publicity (Office of the Vice President) disclosed this in a statement on Wednesday.
At the launch, hosted by Vice President Yemi Osinbajo (SAN), announcements amounting to about $3 billion were made in support of the plan by The World Bank and by US Exim Bank through Sun Africa.
“We plan to commit over USD 1.5 billion towards the Energy Transition Plan on renewable energy, on power sector reforms, on clean cooking, and wherever opportunities arise,” said Shubham Chaudhuri, Nigeria Country Director, World Bank.
“The launch of Nigeria’s Energy Transition Plan 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 USD 1.5 billion financing package,” said Adam Cortese, CEO, Sun Africa.
The launch was attended by several government officials, private sector partners, development finance institutions, philanthropists, and international organisations.
At COP26 in Glasgow in 2021, President Muhammadu Buhari 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 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 Plan is supported by Sustainable Energy for All and the COP26 Energy Transition Council (ETC).
“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,” Osinbajo said at the launch.
“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.”
Analysis from the Energy Transition Plan shows that Nigeria needs $410 billion above business-as-usual spending across the economy, which translates to about $ 10 billion 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.