Nigeria Needs $400 Billion to Bridge Energy Deficits

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Bloomberg News

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(Bloomberg) — Nigeria needs more than $400 billion to meet its energy requirements and achieve zero emissions from fossil fuel.

The bulk of the money — $310 billion — is required to build electricity generation, transmission and distribution infrastructure, and $75 billion is needed for buildings, President Muhammadu Buhari said in emailed statement. Another $41 billion will help fund industry and transport facilities.

The president didn’t indicate a timeframe for the spending plan, though the West African nation would require the support of developed countries to bridge the funding gap, which exceeds the country’s yearly energy budgets for the next 30 years, he said.

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Buhari, who addressed the United Nations General Assembly this week, is under pressure to show how Africa’s most populous nation will ultimately transition away from carbon fuels. With the funding needs almost matching the size of country’s gross domestic product last year, his press release amounted to a statement of indefinite goals, unachievable to him without massive outside assistance.

Under the Paris Climate Agreement, Nigeria has pledged to cut carbon emissions by 20% over the next decade as part of an effort to overcome its energy challenges. While the government is encouraging the private sector to invest in electricity to end blackouts, it’s also injecting 10% of the 2.3 trillion naira ($5.6 billion) intended to spur a recovery from the coronavirus pandemic toward providing solar power for households.

The government plans to provide electricity to 5 million households and 20 million people using solar energy solutions, as a first step toward closing the country’s energy access deficit by 2030, the president said.    

©2021 Bloomberg L.P.

Bloomberg.com

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