Nigeria attracts $500m in energy transition investments in 10-month

November 02, 2024

By Samuel Ogunsona

Nigeria’s energy transition efforts have attracted over $500 million in investments over in just 10 months.

This milestone is attributed to the Federal Government’s strategic initiative promoting gas as a key transition fuel. The investment boost is expected to support the country’s goal of achieving universal energy access by 2030 and becoming carbon-neutral by 2060.

The Special Adviser to President Bola Tinubu on Energy, Mrs. Olu Verheijen, disclosed that the fiscal incentives introduced to deepen the penetration of Compressed Natural Gas (CNG), Liquified Petroleum Gas (LPG), and Liquified Natural Gas (LNG) have yielded impressive results.

She said, “We have launched the Presidential CNG initiative specifically to create a CNG ecosystem capable of achieving Nigeria’s objective of transiting to cleaner transportation fuels and easing the impact of the removal of fuel subsidies in Nigeria, the CNG initiative has so far attracted over $5 million in private investments in addition to government financing. And today, Nigeria has more than 125 vehicle conversion facilities, up from seven in 2023.”

These incentives include waivers on import duties and Value Added Tax (VAT) on the sale and distribution of LNG, CNG, LPG, and associated equipment.

The energy transition plan, launched in August 2022, aims to lift 100 million people out of poverty, reduce Nigeria’s carbon footprint, drive economic growth, and create jobs.

The plan envisions the development of 250 GW of installed electricity capacity, 90% of which will be renewable, by 2050.

She said, several millions of Nigerians particularly women and children, live with a harmful health and environmental effects of cooking with firewood and charcoal.

“For them, the very act of cooking becomes a life-threatening event. For these people, we are determined to provide affordable access to clean cooking options by way of gas and electric boat, and these fiscal incentives are designed to achieve this all-important goal, which is in line with the United Nations SDG, seven on creating affordable and accessible energy.” she said