Elsie UdohNigeria, Africa’s largest oil producer, has long depended on fossil fuels for energy and economic stability.
However, with global climate concerns, fluctuating oil prices, and the push for sustainable energy solutions, the country is strategically trying to transition towards cleaner alternatives. Over the next decade, Nigeria aims to significantly reduce its reliance on fossil fuels through well-defined policies and initiatives.
Join our WhatsApp ChannelHere are four major ways the nation works towards this goal and how it impacts you.
Expanding Renewable Energy Infrastructure
Nigeria is prioritising renewable energy sources like solar, wind, and hydropower to diversify its energy mix. Several initiatives have been put in place to accelerate this initiative.
These include:
1. Solar Power Projects
The government has launched an ambitious plan to electrify five million homes with solar power, impacting around 25 million Nigerians.
This move will not only reduce fossil fuel dependence but also create an estimated 250,000 jobs.
2. Renewable Mini-Grids
In March 2025, Nigeria secured a $200 million deal with WeLight, an African renewable energy firm, to install hundreds of renewable mini-grids across rural areas.
These grids are expected to supply electricity to over two million people, increasing the share of renewables in the national grid.
3. Hydropower Development
Nigeria is also expanding hydropower projects, with the Mambilla Hydroelectric Power Station being a notable example.
Once completed, it will provide an additional 3,050 megawatts of clean energy.
What This Means for You
With this initiative, Nigerians might experience:
- More stable electricity supply
- Lower power costs in the long run and
- New job opportunities in the renewable energy sector.
Transitioning to Natural Gas as a Bridge Fuel
While Nigeria shifts towards renewables, natural gas is being positioned as a transitional fuel to reduce emissions and maintain energy security. This will be done through:
1. Compressed Natural Gas (CNG) Adoption
The Presidential CNG Initiative aims to convert 150,000 petrol-powered vehicles to CNG by the end of 2025, with a long-term target of one million conversions by 2027.
CNG is a cleaner alternative to petrol and diesel, offering up to a 40% reduction in transportation costs and lower carbon emissions.
2. Gas-Fired Power Plants
Nigeria plans to construct nine new gas-fired power plants, adding nearly 6,000 megawatts of capacity by 2037.
These plants will utilise the country’s vast natural gas reserves, ensuring a more sustainable energy supply.
3. LNG Export Expansion
Nigeria is leveraging its liquefied natural gas (LNG) exports to generate revenue and transition from crude oil dependency while promoting cleaner energy domestically.
What That Means for You
- Potentially lower fuel prices
- Reduced air pollution and
- Cheaper transportation alternatives.
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Implementing Low-Carbon Regulations and Policies
Regulatory frameworks are being strengthened to encourage sustainable practices in the energy sector.
1. Decarbonisation Requirements for Oil Licenses
From January 2025, all oil license applicants must prove low carbon emissions and have a renewable energy integration plan.
The Nigerian Upstream Petroleum Regulatory Commission introduced the Upstream Petroleum Decarbonisation Template (UPDT) to guide compliance.
2. Methane Emission Reduction Plans
Nigeria is implementing strict regulations to curb methane emissions in oil and gas operations.
Companies are required to adopt energy-efficient technologies and carbon capture methods.
3. Carbon Trading and Green Bonds
The government is exploring carbon markets and issuing green bonds to finance renewable energy projects.
By 2025, investments in green bonds are projected to surpass N1 trillion, supporting climate-friendly initiatives.
What This Means for You
- Stricter environmental policies that could lead to cleaner air and water
- New investment opportunities in green finance.
Encouraging Private Sector Participation in Clean Energy
Public-private partnerships are key to Nigeria’s clean energy transition. The government is actively engaging businesses to drive renewable energy adoption through:
1. Investment in Renewable Energy Startups
Through financial incentives and subsidies, the government is attracting private sector investments in clean energy startups that focus on solar, wind, and biofuels.
2. Public-Private Energy Collaborations
Nigeria’s partnership with WeLight to install mini-grids demonstrates the government’s commitment to leveraging private sector expertise to expand renewable energy access.
3. Incentives for Green Technologies
Tax breaks and duty waivers are being offered to companies investing in energy-efficient technologies, encouraging large-scale adoption of clean energy solutions.
What This Means for You
- More job opportunities in the clean energy sector and
- Increased competition leading to lower costs for renewable energy solutions.
Conclusion
Nigeria’s transition from fossil fuels to sustainable energy sources is a crucial step towards economic diversification and environmental sustainability.
By expanding renewable energy infrastructure, utilising natural gas as a bridge fuel, implementing low-carbon policies, and fostering private sector participation, the country is laying the foundation for a cleaner and more resilient energy future.
Although challenges such as infrastructure deficits and financial constraints persist, these initiatives represent significant progress in Nigeria’s journey toward energy sustainability.
With continued investment and policy implementation, the country is well on its way to reducing fossil fuel dependence by 2035, and these changes will directly impact you through cleaner energy, better job prospects, and a more stable economy.
Elsie Udoh is an SEO content writer who specialises in writing engaging stories that resonates with diverse audiences. She studied mass communication at the Lagos State University.
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