Nigeria’s clean energy transition entered a new phase this week as the Federal Government announced the mobilization of over $2 billion to de-risk solar investments and accelerate the shift toward renewable energy adoption nationwide.
The disclosure was made by Mallam Abba Abubakar Aliyu, Managing Director of the Rural Electrification Agency (REA), while representing the Honourable Minister of Power, Chief Adebayo Adelabu, at the 4th International Conference of the Renewable Energy and Energy Efficiency Associations Alliance (REEEAA), held in Lagos.
Aliyu explained that the financing pool includes $750 million from the World Bank’s Distributed Access through Renewable Energy Scale-up (DARES) programme, $200 million from the African Development Bank (AfDB), $190 million from the Global Energy Alliance for People and Planet (GEAPP), and an additional $800 million currently under negotiation with multilateral partners.
“The Federal Government has absorbed nearly all non-operational risks through dollar-denominated grants and guarantees,” Aliyu stated. “We now expect Nigerian banks to move beyond micro-level support and provide large-scale financing for developers and clean energy entrepreneurs.”
He revealed that leading financial institutions—including Access Bank, FCMB, and Stanbic IBTC—have already entered renewable partnerships, citing FCMB’s ₦100 billion solar funding memorandum of understanding as a model for industry replication.
According to REA data, Nigeria imported 1,721 MW worth of photovoltaic solar panels between June 2024 and June 2025—second only to South Africa on the continent.
Yet, over 45 percent of the country’s 226 million citizens still lack access to reliable electricity. This energy gap, Aliyu said, costs the economy $25 billion annually in lost productivity.
Bridging this deficit will require $23 billion in new investments, while the successful implementation of the National Energy Transition Plan (ETP) is estimated to cost $410 billion. To this end, the Federal Government allocated ₦1.7 trillion in its 2025 budget toward energy-related projects across multiple ministries and agencies.
Aliyu reaffirmed that the Federal Government remains committed to decentralizing power generation through mini-grids, renewable clusters, and private-sector-led systems.
Germany’s government, through GIZ, also reaffirmed its partnership with Nigeria, pledging €35.6 million in fresh support for renewable energy development.
The Deputy Head of Mission at the German Embassy in Nigeria, Mr. Johannes Lehne, highlighted upcoming engagements under the Energy Transition Challenge Fund, which will provide co-investment grants and advisory support for clean energy startups.
Both countries will further consolidate their cooperation at the Nigeria–Germany Ministerial Dialogue scheduled for November 4, 2025, in Berlin, covering climate, energy, agriculture, and investment collaboration.
In his closing remarks, Prof. Abubakar Sambo, Chairman of REEEAA’s Board of Trustees (BOT), represented by Dr. Sunny Akpoyibo, Vice Chairman of the BOT called for discipline and accountability in translating commitments into measurable impact.
“The momentum for energy transition is undeniable,” he said. “What remains is the discipline to implement, monitor, and sustain these efforts.”
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