Economic Transformation: FG Announces Over $3 Trillion Investment For Energy Transition

The Minister of State for Petroleum Resources (Oil), Dr Heineken Lokpobiri, has disclosed that Nigeria will spend a total sum of $3.1tn to transit from fossil fuel to cleaner and renewable energy….CONTINUE READING

Lokpobiri said the nation had projected $1.9tn for energy transition plan, while $1.2tn was estimated for renewable energy plan in 2060, making a sum of $3.1tn altogether.

He made this known at the 54th Annual Meeting of the World Economic Forum, in Davos, Switzerland.

In a post on his X handle Thursday, the minister said he, alongside Vice President Kashim Shettima, and other global leaders, had emphasised the nation’s commitment to responsible fossil fuel exploration, leveraging cutting-edge technologies.

He also highlighted that Nigeria’s energy policies aligned with the Organisation of the Petroleum Exporting Countries expectations, showcasing the country’s “dedication to sustainable practices.”

However, on the issue of transitioning from fossil fuels, Lokpobiri said, ”Africa, Nigeria in particular, will not rely on aids and grants to transition to cleaner and renewable energy sources in 2060.

“Our 2060 projected energy transition plan and renewable energy plan stands at $1.9tn and 1.2tn respectively”.

He said, “At the 54th Annual Meeting of the World Economic Forum (Davos 2024), I seized the platform to outline our strategic initiatives, reinforcing Nigeria’s position as an attractive investment destination in the oil sector. Thus, I invited prospective investors to join us on this transformative journey, ensuring mutual prosperity and sustainable energy solutions.

“Alongside Vice President Kashim Shettima and global leaders, I emphasised our commitment to responsible fossil fuel exploration, leveraging cutting-edge technologies. I also highlighted the fact that our energy policies align with OPEC expectations, showcasing our dedication to sustainable practices.

“However, on the issue of transitioning from fossil fuels, I emphasised that Africa, Nigeria in particular, will not rely on aids and grants to transition. Our 2060 projected energy transition plan and renewable energy plan stands at $1.9tn and $1.2tn respectively.”

To achieve the energy transition and renewable energy plans, the minister stressed that there would be need for “an increased investment in our oil and gas sector so as to bolster our economy and guarantee energy security”.

He added that with the large deposit of mineral resources, domestic control of the mining and production would yield more climate finance to Africa, and not aid or grant.

“To this end, the transition conversations should move towards trade and partnerships, and not just deadlines,” he stated.

Ireporteronline reports that to deliver on its climate target and energy transition plan, President Bola Tinubu, had earlier said that the country would have to spend $17.7bn annually.