How Nigeria can achieve sustainable, renewable energy — EU

The European Union has outlined a clear path for Nigeria to achieve sustainable, renewable energy, emphasizing that the key lies in fostering robust partnerships and creating a supportive ecosystem for innovation.¹ The recommendations, shared at the Nigeria Renewable Energy Innovation Forum (NREIF), highlight that Nigeria possesses the necessary human talent and natural resources to become a leader in the green energy transition.²

The EU’s Core Recommendations

The EU’s strategy for Nigeria is built on a “creative partnership” model involving three key pillars: the public sector, the private sector, and research institutions.³

1. Public-Private Sector Partnerships (PPPs): The EU argues that while the public sector is responsible for providing the necessary policy and regulatory frameworks, the private sector brings the agility, technical expertise, and investment needed to implement projects.⁴ This collaboration is seen as the most effective way to deploy sustainable energy solutions, particularly for off-grid systems in rural areas.⁵ The EU is already backing this approach with a €100 million energy sector program, aiming to add 400 megawatts of new renewable capacity by 2027.⁶
2. Harnessing Nigerian Ingenuity: The EU has praised Nigeria’s “abundant and exceptional human talent and natural resources.”⁷ The recommendation is for Nigeria to leverage this potential by creating innovation ecosystems that will lead to breakthroughs in clean energy technology and business models. This includes building local capacity and developing industries for local content.⁸
3. Research and Innovation: The EU stresses the importance of research institutions in providing evidence-based insights into energy demand, consumer behavior, and resilient business models.⁹ This data is crucial for ensuring that innovation truly serves local communities and leads to sustainable solutions.

Challenges and Opportunities

The EU’s recommendations come at a time when Nigeria’s energy sector is heavily reliant on fossil fuels.¹⁰ The country’s overdependence on oil and gas for more than 80% of its energy mix has created significant challenges, including:

• Financial Constraints: The initial high cost of acquiring and installing renewable energy technologies, such as solar panels and batteries, remains a significant barrier for many Nigerians.¹¹ The country’s weak manufacturing sector means that most of these components must be imported, further increasing costs.
• Institutional and Regulatory Hurdles: A fragmented and uncoordinated regulatory environment, bureaucratic red tape, and a lack of consistent policy implementation have deterred potential investors.¹²
• Infrastructure Gaps: An outdated and inadequate transmission and distribution infrastructure makes it difficult to integrate renewable energy sources into the national grid effectively.¹³

Despite these challenges, the EU and other international bodies see immense potential. Nigeria’s vast solar, wind, and hydropower resources are largely untapped. Programs like the Nigeria Energy Support Programme (NESP), co-funded by the EU and Germany, and the GET.invest Nigeria initiative are designed to mobilize private sector investment and provide the necessary support to bridge these gaps.¹⁴

By implementing the EU’s recommendations, particularly through a concerted effort to foster partnerships and create a more conducive regulatory environment, Nigeria can move closer to achieving its ambitious goals of a sustainable and resilient energy sector, which is central to its broader energy transition plan.¹⁵