Nigeria's Energy Transition Plan: An Overview and Entry Points for Non-State Actors
This paper analyzes Nigeria's Energy Transition Plan (ETP), outlining its objectives for decarbonization, job creation, and socio-economic development. It details the significant financial investment required, projected impacts on various sectors, and the institutional framework governing the transition. The analysis also emphasizes the importance of a 'just transition' and identifies key strategic engagement opportunities for non-state actors, including NGOs, the private sector, and academia.
Natural Resource
Governance Institute
Nigeria's ETP:
Overview & Entry Points for Engagement with Non-State Actors
Tengi George-Ikoli
Senior Officer
Natural Resource Governance Institute
October 2024
Decarbonization plan to deliver low carbon economy...
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Lifting 100 million people out of poverty
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Bringing modern energy services
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Renewable sector expansion – solar energy, hydrogen & renewables
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Promote fair, inclusive & equitable transition
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Gas to fuel power & cooking sectors
65% of Nigeria's total emissions
Power
48 MtCO2e
Transport
43 MtCO2e
Cooking
40 MtCO2e
Industry
29 MtCO2e
Oil and Gas
19 MtCO2e
Nigeria's decarbonization plan comes with benefits ... for a price
Net Job Creation Per Sector
Comparison of net jobs created by 2030 and 2050 (in thousands).
2030 Projections (340k net jobs created)
2050 Projections (940k net jobs created)
OPEX vs CAPEX Investment Needs
Values in billion USD (approximate from visual).
$1.9 trillion
is required to get to net zero by 2060 including
$410 billion
Above business-as-usual spending
Institutions Guiding the Transition
Different institutions have been given the responsibility to guide the transition...
Climate Change Act 2021
Provides legal backing to NCCC to oversee and coordinate all climate change efforts, including the energy transition.
Energy Transition Office (ETO)
Under the supervision of the office of former Vice President, the ETO initially led the implementation of the Energy Transition Plan.
FMoPR Department of Climate Change
The continuity and force of the Energy Transition Plan under the new administration remains unclear.
"However, the pace at which Nigeria can respond depends on its ability to assess its preparedness to transition and design a sustainable energy transition process that supports that transition."
But are all these plans 'just'?
An energy transition characterized by equity and justice, in terms of both the process and the outcomes.
- • A well-governed transition
- • Supports people's right to a say in the decision-making process
- • Prioritizes policy outcomes that minimize economic inequality, environmental injustice, and social exclusion
- • Inextricably linked to international climate justice
What's missing?
Responsible Phase-out of fossil fuels
- • Economic diversification
- • Environmental remediation for oil communities
- • Inclusion of marginalized voices in decision-making
- • Mitigation of environmental, economic and social impacts
Responsible Phase-in to renewables
- • Equitable mining/extraction of minerals for RE
- • Access to renewable energy value chain
- • Energy Security
- • Green jobs
- • Expansion of energy mix
- • Innovation, R&D & local solutions
Entry Points for Non-State Actors
Collaboration with NGOs and Civil Society
- •Advocacy
- •Public awareness & grassroots mobilization
- •Community-based projects
Private sector engagement
- •RE investment
- •Innovation
Academic & research institutions
- •Research into RE & best practices
- •Knowledge exchange & capacity building programs
Financial institutions
- •Fund mobilization & investment in RE
- •Innovative financing mechanisms
International development partners
- •Technical assistance & capacity building
Entry-points for Labour
- •Align policies with energy transition goals
- •Skills development and training programs
- •Promote social dialogue and stakeholder engagement
- •Create incentives for green job creation
- •Implement labour standards and protections
- •Data collection and labour market analysis
- •Promote gender inclusivity in the ET
- •Public awareness & advocacy