Stated energy transition goals Energy policy priorities Reduce GHG emissions by 20% Ensure 48% of the population use Achieve 30% on-grid electricity (unconditional) and 47% (conditional) by lique昀椀ed petroleum gas and 13% use from renewables, 13 GW off-grid 2030 compared to business as usual improved cookstoves by 2030 renewable energy, and reduction Reduce emissions by 50% from current Achieve 2.5% annual reduction in of grid transmission and levels by 2050 and achieve net-zero distribution losses to 8% of 昀椀nal energy intensity in all sectors energy consumption by 2030 emissions between 2050 and 2070 Achieve zero gas 昀氀aring by 2030 highest rates of energy poverty in the world. The Country analysis electricity access rate stands at 25% for rural populations for whom biomass and waste are the Key progress on ETI primary source of energy for cooking. Conversely, Nigeria has one of the highest costs of electricity Nigeria ranks 108 out of 120 countries on the ETI 127 in the world at an average of $0.52/kWh. 2023 and is the largest economy and richest oil “Development 昀椀nance institutions and other resource centre of the African continent, as well as donors, wealthier, high-emitting countries, and the largest gas consumer and producer of West international NGOs are well-placed to support this 124 Africa. Over the last 10 years, Nigeria’s overall agenda through 昀椀nancing and research, and by ETI score has improved (3%), while its system encouraging constructive engagement on subsidy performance scores have fallen slightly (1%). The reform and justice and social responsibility in energy country’s growing population and array of socio- 128 transition more broadly.” economic issues mean it needs sustainable energy sources to meet the increasing needs for all sectors Nigeria’s energy transition creates signi昀椀cant of the economy. High scores on regulation and investment opportunities, including establishing political commitment, relative to other enabling and expanding industries for solar, hydrogen dimensions, are evidenced by the country’s notable and electric vehicles, and using its vast natural power-sector reforms and plans to accelerate its gas resources for economic development. A clean energy transition and meet key development Renewable Energy Roadmap was produced goals, including achieving net zero by 2060. with the International Renewable Energy Agency and the Energy Commission of Nigeria Key imperatives and policies in place in January 2023 that “encompasses all key sectors of the Nigerian energy system to Nigeria’s Climate Change Act, which was signed provide additional context for energy policy into law in November 2021, “provides the legal discussions on how increased ambition in terms framework and a bold institutional arrangement of renewable energy – beyond current government 129 for action on climate change. The Act established policy and targets – can be realised”. a National Council on Climate Change, chaired by the President, to lead work under the Act and help What’s next? mainstream climate change action into the country’s development agenda. … The vital next step is Overall, the energy transition in Nigeria still requires for the Council to publish Nigeria’s 昀椀rst carbon signi昀椀cant investment from the government and budget as requested by law and put in place support from its citizens. Prioritizing economic efforts to monitor implementation and compliance”, development, along with proper planning and 125 according to global think tank ODI In addition, strengthening institutional and 昀椀scal frameworks, the launch of the country’s Energy Transition Plan can help Nigeria accelerate its transition. Based in August 2021 sets out a timeline and framework on lessons learned from other countries, the for achieving reduction in emissions across 昀椀ve key government could identify (and support) low- sectors: power, cooking, oil and gas, transport, and carbon energy solutions, especially in the rural industry. These two important steps and a revised and peri-urban areas of Nigeria; place greater nationally determined contribution are reliable signs emphasis on innovation in new energy infrastructure of Nigeria’s future. Nevertheless, challenges remain development; improve energy ef昀椀ciency in small and to turn these commitments into action. medium-sized enterprises; explore the effective use of domestic funding; and harmonize different energy As ODI points out, a “major obstacle to Nigeria’s policy frameworks. Together with the Renewable transition away from fossil fuels is the high levels Energy and Energy Ef昀椀ciency Associations-Alliance, of government subsidies for their production and the World Economic Forum is engaging key consumption. Progress on reforming fossil fuel public- and private-sector stakeholders to further subsidies has been challenging, as consumers understand Nigeria’s energy transition policy plans, expect accessible energy and affordable pricing associated investment barriers to accelerate the from the government as a bene昀椀t of being a major clean energy transition, and practical solutions to 126 Nigeria currently has one of the oil producer”. address those barriers. Fostering Effective Energy Transition: 2023 Edition 60