FG To Generate $23bn From Energy Transition, Target 340,000 Jobs

The Federal Government through the Ministry of Power has revealed that harnessing investment opportunities in the Electricity Transition Plan, will generate a whooping sum of $23bn.

The Power Minister, Adebayo Adelabu, stated this at the 2nd German-Nigerian Symposium on Green Hydrogen on Monday.

“The ETP creates significant investment opportunities such as the establishment and expansion of industries related to solar energy, green hydrogen, and electric vehicles.

“$1.9 trillion is required to get Nigeria to Net Zero by 2060, including $410 billion above usual spending. This additional cost translates to about $10bn annually.

“A $23bn investment opportunity has been identified based on current in-country programmes and projects that are directly related to the Just energy transition,” Adelabu said.

He noted that opportunities are not restricted to revenue generation but would create up to 340,000 jobs by 2030 and 840,000 jobs by 2060 driven mainly by power, cooking and transport sectors.

The Executive Secretary, of Nigeria Extractive Industries Transparency Initiative, Ogbonnaya Orji at the event said in the short term, Nigeria’s gas had the potential to produce blue hydrogen, which, though not as clean as green hydrogen, would be useful in the country’s journey of cleaner energy sources.

“And sadly Nigeria is still battling to put in place and embrace efficient gas commercialisation and utilisation policy. For instance, NEITI’s recent report disclosed a total unremitted revenue of over $8.2bn. These revenues arose from liabilities of government agencies and oil/gas companies.

“A breakdown of the unremitted payments in our report showed outstanding gas royalty of $559.8m and another unremitted sum of $828.8m from unpaid gas flare penalty which indicated that more gas was flared during the period than utilised posing serious dangers to the global zero emissions agenda.

“NEITI is working closely with the Nigerian Upstream Petroleum Regulatory Commission on its ongoing gas commercialisation policy to ensure transparent and effective implementation to reverse the trend of gas flare,” Orji stated.

The Country Director, of GIZ Nigeria and ECOWAS, Markus Wagner, said, “It is crucial to recognise that green hydrogen has the potential to revolutionise our energy landscape. It offers a path to reducing carbon emissions, diversifying energy sources, and boosting economic growth.”