– Nigeria’s Energy Transition Presents $410bn Investment Opportunity, Says Vice President
By Obas Esiedesa, Abuja
The Federal Government has signed renewable energy deployment agreements worth $500 million with five state governments and the Netherlands Development Organisation (SNV) to boost solar power generation and expand local production of solar panels and battery storage systems in Nigeria.
The agreements, facilitated through the Rural Electrification Agency (REA), were signed with Bayelsa, Ogun, Lagos, Akwa Ibom, Kano, and the Federal Capital Territory. The initiative is expected to add about 3,950 megawatts of renewable energy capacity across the country.
Speaking at the Nigeria Renewable Energy Innovation Forum (NREIF) held in Abuja, Vice President Kashim Shettima said Nigeria’s ongoing energy transition represents an estimated $410 billion investment opportunity between now and 2060.
Shettima reaffirmed the Federal Government’s commitment to creating an enabling environment for private sector participation in clean energy production, emphasizing that local content development and technology transfer are central to the administration’s energy strategy.
The forum, themed “Implementing the Nigeria First Policy: Facilitating Local Content Development and Manufacturing in the Renewable Energy Ecosystem,” brought together government officials, investors, and industry stakeholders to discuss strategies for deepening local participation in the renewable energy value chain.
According to the Vice President, over $23 billion will be required to expand electricity access and connect millions of Nigerians still living in energy poverty.
“But beyond access lies the grander ambition: to deliver a power system capable of 277 gigawatts of total installed capacity by 2060 — driven by renewables, storage, grid expansion, and clean technology infrastructure,” Shettima said.
“These are not just figures; they are opportunities for job creation, industrial expansion, private capital mobilization, and inclusive growth.”
He stressed that the government alone cannot address the nation’s energy challenges, calling for greater involvement of private sector players and development partners.
“To unlock the full potential of Nigeria’s energy transition, we need our industrialists, innovators, and financiers to take bold steps.
We also count on our state governments to champion renewable industrial clusters and serve as engines of green growth across the federation,” he added.
Also speaking, the Minister of Power, Chief Adebayo Adelabu, said government investments over the past two years have improved average electricity generation from 4,000MW in 2023 to 5,300MW in 2025.
Adelabu noted that efforts are ongoing to improve liquidity and attract further investment into the power sector.
“We are deepening payment assurance frameworks, promoting cost-reflective tariffs, and encouraging local and international financiers to invest in our growing project pipeline — from on-grid expansion to distributed renewable solutions,” he said.
“The future of Nigeria’s power sector will be shaped not by imports, but by what we build, assemble, and innovate here at home.”
In his remarks, the Managing Director/CEO of REA, Engr. Abba Aliyu, said under the new deals, Ogun will get 1,100MW, Lagos 150MW, Akwa Ibom 1,100MW, Kano 1,100MW, and the FCT 500MW.
He disclosed that the REA currently manages an active and expected project portfolio of about $3 billion in the renewable energy sector.
“The theme, ‘The Nigeria First Policy,’ captures our collective aspiration to domesticate the technologies, industries, and capabilities that will power our energy future,” Aliyu said.
“To secure our long-term sustainability and economic competitiveness, we must ensure that what we deploy is increasingly designed, assembled, and manufactured in Nigeria.”
Aliyu emphasized that the REA’s mandate now extends beyond electrification to fostering local manufacturing and value-chain development in renewable energy technologies.
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