Shettima Woos Investors for Nigeria’s Green Energy Transition
• Nigeria needs $410bn additional investment to achieve net-zero pathway, says presidency Michael Olugbode in Abuja Vice President Kashim Shettima has called for urgent policy reforms, stronger public-private partnerships, and
Nigeria's Vice President Kashim Shettima has urged investors to step in to help the country meet its ambitious green energy transition targets. Speaking at the second edition of the Decarbonising Infrastructure in Nigeria (DIN) Summit in Abuja, Shettima revealed that the nation requires an additional $410 billion in investments by 2060 to achieve its net-zero pathway.
The summit, organized by the Office of the Vice President with assistance from the National Council on Climate Change and UNIDO, aimed to explore ways to bridge the financing gap in Nigeria's green infrastructure sector.
Shettima stressed that while the government would remain an essential player in financing the transition, it cannot provide all the capital required. He emphasized the need for stronger public-private partnerships, innovative risk-sharing mechanisms, and a prepared pipeline of projects that can attract both domestic and foreign investments.
The vice president highlighted that investment in green infrastructure in Nigeria faces policy, financial, technical, and institutional challenges, but these obstacles can be overcome through collaboration among stakeholders.
The summit also focused on the importance of converting ideas into viable projects that investors can assess, finance, and implement. Shettima identified key questions investors typically ask before committing capital, such as the clarity of the policy environment, the credibility of the revenue model, the adequacy of addressing technical issues, and the allocation of risks among parties involved.
He noted that the DIN Summit 2.0 could play a significant role in addressing these concerns and facilitating meaningful investments in Nigeria's green infrastructure.
In addition to Shettima's remarks, the summit discussed the need for early-stage project preparation, blended finance, and risk-sharing mechanisms to attract private capital. The African Development Bank's Alliance for Green Infrastructure in Africa, seeking to mobilize $500 million in early-stage blended finance, was highlighted as an example of such efforts.
Furthermore, the summit acknowledged the financing gap in Nigeria, with UNIDO Sub-Regional Representative Ambassador Philbert Abaka Johnson stating that tracked climate finance flows into the country averaged only $2.5 billion annually in 2021 and 2022, compared to the estimated annual requirements of $29.7 billion.
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