Champion Olatunji, an energy transition and carbon removal advisor and member of the Washington, DC-based Clean Energy Leadership Institute, says Nigeria’s quest to achieve a clean energy future requires collective action.
He said beyond financial investments, achieving a clean energy future for Nigeria requires a united global front from advanced economies by catalysing public and private sector engagement through targeted incentives, such as tax credits for renewable energy investments, streamlining regulatory processes for clean energy projects, or subsidies that lower the cost of infrastructure development.
Olatunji, in a recent journal article titled ‘The Path to Nigeria’s Clean Energy Future Lies in Collective Action,’ noted that though Nigeria’s 2021 energy transition plan projected an investment of approximately $410 billion by 2060 to achieve its energy access and transition goals, it is not enough to ensure a successful energy transition, noting that a united and collective global front is crucial for scaling up renewable energy, decarbonising economies, and fostering sustainable growth.
He added that achieving a clean energy future also required modernising power grids, as the country’s grids are ageing, resulting in incessant grid collapses.
The expert said the country’s power challenges have ultimately undermined its development and growth, leading to domestic and international companies relocating from Nigeria to other countries with stable electricity.
“Moreover, there is an increased low domestic manufacturing output and slow internet services, leading to youth unemployment as remote gig workers in Nigeria tweet about their frustration of power grid failure, which has resulted in job losses because many employers abroad could no longer deal with the blackout while on important work calls.
“Additionally, households and businesses often compensate for unstable power supply by adopting off-grid solutions, such as standalone gasoline fuel-powered generators—approximately 84 per cent of urban households and 86 per cent of companies use backup power supply systems in Nigeria, primarily based on gasoline fuels,” he said.
Olatunji further made a case for building smarter grids for the uptake of clean energy as well as for facilitating the electrification of societies and industries, adding that Nigeria’s electricity grids must evolve to support energy security while creating economic competitiveness and innovation.
He stated that in alignment with Nigeria’s Energy Transition Plan, which aims to reach 30 gigawatts (GW) of electricity generation capacity by 2030, the country’s energy mix is projected to consist of approximately 70 per cent thermal sources, primarily natural gas, and 30 per cent renewable sources, with approximately N6 trillion ($4 billion) in annual revenue required to maintain a reliable power supply, according to Adebayo Adelabu, the Minister of Power.
He said, “Grid modernisation is fundamental to making Nigeria a competitive and sustainable business hub. The positive news is that this effort is already in motion, as evidenced by the partnership between the Rural Electrification Agency (REA) of Nigeria and Husk Power Systems to deploy up to 250 megawatts (MW) of decentralised renewable energy (DRE) projects in support of the government’s energy access, energy transition, and energy security targets.
“Businesses, households, critical institutions, and workers in the gig economy stand to benefit from the steady power supplied by building smarter grids. Furthermore, business models such as the battery-as-a-service model offered by startups in Nigeria and other African countries can provide affordable, off-grid power to underserved communities, ensuring reliable energy access for schools, healthcare facilities, local industries, and freelance workers.”
Olatunji also called on governments to develop strategic business policies and compelling economic arguments for grid expansion in Nigeria, which can have the direct advantages of increasing clean energy adoption as well as broader indirect benefits like job creation, skill enhancement, improvements in public health, accelerated economic growth, and greater resilience to extreme weather conditions.
He said: “To fully realise its energy potential, Nigeria must embrace a multi-faceted approach that scales up existing technologies and fosters innovation. By investing in decentralised energy systems, such as solar microgrids and battery storage solutions, communities can gain greater energy independence and resilience. These systems not only provide reliable electricity but also create local jobs, empowering small businesses and facilitating the growth of the gig economy.
“The path to sustainable clean energy growth in Nigeria lies in global collective action and in scaling up innovative clean energy solutions. By harnessing the potential of technology, fostering collaboration, and implementing inclusive financing models, the country can turn its energy challenges into opportunities, benefiting all segments of society.”
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