Nigeria Energy Transition Plan



Since the 2060 Net-Zero commitment at COP26 and the unveiling of the Energy Transition Plan (ETP) on which the commitment was based, the ETP has been fully approved by the Federal Executive Council. In addition, an Energy Transition Implementation working group (ETWG) chaired by H.E Vice President Yemi Osinbajo SAN and comprising of several key ministers has been set up. The core members of the ETWG include the Ministers for Environment, Finance, Power, Works & Housing, Petroleum and Foreign affairs.

Sustainable Energy for All (SEforALL) and the Global Energy Alliance for People and Planet (GEAPP) support the working group through a dedicated secretariat, The Nigeria Energy Transition Office (ETO). The ETO currently functions through the Office of the Vice President.

Concrete objectives have been defined for the Working Group to ensure a clear focus and accountability:

Secure at least $10 billion financing commitment to kickstart the implementation of Nigeria’s Energy Transition Plan by COP27.

Secure 3-5 agreements with Original Equipment Manufacturers (OEMs) to begin the local manufacturing/assembly of key technologies such as electric vehicles, and decentralized solar systems in Nigeria by 2025.


Secure 1-2 agreements for skills and knowledge transfer with private sector leaders, research institutions and other partners, with immediate focus on upskilling labor for the power and cooking sectors.

Play a leadership role for Africa by promoting a fair, inclusive and equitable energy transition in Africa that will include Gas as a “transitionary fuel” , ending energy poverty and supporting industrialization.

Streamline existing and new government related energy transition initiatives (e.g., Decade of Gas, Solar Naija programme) to align with energy transition plan and Net Zero by 2060 commitment.

As highlighted by the Energy Transition Plan, Nigeria offers significant investment opportunities across the energy sector and political will for the energy transition exists at the highest level of Government.

The Federal Government of Nigeria (FGN) has implemented several sector reforms, put in place enabling policies/incentives, launched ambitious programmes and made investment-grade data publicly available to demonstrate its investment readiness:

Aggressive reforms have led to reaching cost reflective grid-based electricity tariffs for the first time since privatization and a 75% increase in collections.

FGN passed the Climate Change Bill in 2021 with provisions for the establishment of a climate change council and a carbon market.

The Nigerian government also submitted an ambitious Energy Compact to the United Nations (UN) as part of the United Nations High Level Dialogue on Energy.

The Nigerian Government submitted its updated NDCs in 2021. The Federal Ministry of Environment is harmonizing Nigeria’s NDCs with its energy transition pathway and other climate change efforts

Pioneer status is available to companies involved in independent power generation, the legislation provides a tax holiday of an initial three-year period, renewable for an additional two-year period. A Liquefied Petroleum Gas (LPG) Cylinder Manufacturing company has also been approved for the ‘Pioneer Status’ incentive.

FGN introduced feed-in tariffs (FIT) as a tariff regulatory mechanism to accelerate investment in renewable energy sources. The FIT regime guarantees a stable price for electricity generated from renewables for a fixed duration, thereby securing adequate returns on Investment.

FGN has embarked on extensive solar mini grids and off grid programmes such as the Nigeria Electrification Project, the Energizing Economies Initiative, the Energizing Agriculture Project, the Energizing Education Programme, and the Interconnected Mini-Grid Acceleration Scheme via The Rural Electrification Agency (REA)

The government has also shown leadership in Decentralized Renewable Energy (DRE) by deploying solar + storage solutions to government buildings, universities and health facilities.

The Nigerian Integrated Energy Planning Tool provides publicly accessible community-level data for the least-cost mix of solutions to meet demand for a variety of energy services, including electrification, clean cooking, and productive uses.