Nigeria to spend $10bn annually for energy transition

Nigeria has set its sights on a substantial goal, aiming to spend $10 billion annually to achieve its energy transition plan by the year 2060, with an estimated total of $400 billion required. This ambitious plan was discussed by Kola Karim, the Chairman of Shoreline Group, in an exclusive interview with CNBC Africa. The initiative stems from Nigeria's acknowledgment of the pressing need to address both energy deficiency and climate change. Kola emphasized the necessity of a strategic transition plan to avoid further exacerbating these challenges in the long run. Nigeria, having pledged to the Paris Agreement and declared a net-zero emission policy, recognizes that without concrete steps towards energy transition, the country risks perpetuating its energy poverty status. The Chairman stressed that the $10 billion annual expenditure is essential to meet the obligations outlined in international agreements and elevate Nigeria's energy landscape. To effectively pave the way towards net-zero emissions by 2060, Kola highlighted the importance of collaborative efforts with key partners such as Sustainable Energy for All, the Rockefeller Foundation, and the Global Energy Alliance for People and Planet. Leveraging Nigeria's abundant natural resources, particularly its vast gas reserves and potential for hydro and solar energy, is pivotal in developing a diversified energy portfolio. It is crucial to implement robust policies that drive sustainable energy practices and ensure the delivery of value across the sector. Additionally, Kola emphasized the need for a well-structured power sector to facilitate efficient energy distribution and usage. Although Nigeria heavily relies on fossil fuels for revenue generation and economic stability, Kola underscored the urgency of transitioning towards renewable energy sources like solar and wind. With the global focus on increasing gas production post-pandemic, Nigeria's natural gas reserves present a significant opportunity for economic growth. By capitalizing on its resources and fostering investments in renewables, Nigeria can accelerate its energy transition journey. Kola emphasized the importance of creating an enabling environment in the power sector to attract investments and ensure their sustainability, while also highlighting the vital role of global financial institutions in supporting Nigeria's energy diversification efforts. Nigeria's commitment to spending $10 billion annually for energy transition reflects a proactive approach towards achieving net-zero emissions by 2060. By harnessing its natural resources and collaborating with international partners, Nigeria aims to chart a sustainable path towards energy sufficiency and environmental conservation.