President Bola Tinubu, at the Africa Climate Summit (ACS) in Kenya, has said that Nigeria requires an annual investment of S17.7 billion to meet the unconditional targets in the country’s Nationally Determined Contributions (NDCs).
The president added that Nigeria’s energy transition plan requires $10 billion per annum.
An NDC is a climate action plan nations have put together to cut emissions and adapt to climate impacts.
The president, who is represented by Dr Ishiak Salako, Minister of State for Environment, added that Nigeria’s Energy Transition Plan requires $1.9 trillion in spending up to 2060.
Speaking on Tuesday at the High-Level Leaders Event of the ACS, he said, “In Nigeria, we have articulated our unchanging position to advance climate action without jeopardising economic development. We designed an ambitious Energy Transition Plan to achieve universal access to energy by 2030 and net-zero emissions by 2060 while prioritising industrialisation, job creation, and economic growth.
“Significantly, our plan helps to crystallize the scale of resources needed to deliver climate targets, so that the current financial flows will not suffice. Nigeria’s Energy Transition Plan requires $1.9 trillion in spending up to 2060, including $410 billion above business-as-usual spending. This additional financing requirement translates to about $10 billion per annum but average international financing flows to Nigeria for clean energy have been about $655 million per year over the past decade.
“Similarly, the unconditional target in our Nationally Determined Contributions (NDCs) requires $17.7 billion in investments annually. In 2019/2020, all Sub-Saharan Africa received barely approximately 20 billion USD in climate finance. Annual climate finance flows to Africa are currently just 11% of what we require so more investments have to come to the continent.
“For us in Nigeria, we are presently establishing partnerships with both public and private sector players, driving innovative policy changes, advancing renewable energy projects including on-grid solar and electric vehicle deployment, and exploring innovative financing mechanisms like carbon trading to lay the foundation for an all-encompassing transition.”
The president added that “We recognise that Just Energy Transition Partnerships (JET-Ps) are emerging as an important source of capital for climate-sensitive energy efforts in developing regions and Nigeria wants to be considered for one. My team is currently working on a proposal to the G7 for a JET-P for Nigeria. It is encouraging that South Africa and Senegal have secured JET-Ps, but they must be scaled up across Africa in addition to other strategic financing opportunities.”
The Africa Climate Summit holds from September 4 to 6, alongside the Africa Climate Week 2023 (ACW). The event gathers government, policymakers, practitioners, business and civil society on climate issues. Both events are hosted by the Government of Kenya.
