REPORTS

The Federal Republic of Nigeria’s National Energy Compact, aligned with its National Electrification Strategy and Implementation Plan under preparation and the UN Sustainable Development Goal 7 (SDG7), serves as a roadmap for accelerating the pace of access to energy towards ensuring affordable, reliable, inclusive, sustainable, and clean energy for the Nigerian people.
 

Nigeria is the most populous country and the second largest economy in SubSaharan Africa. It is endowed with vast fossil fuel (crude oil and natural gas) and renewable energy resources, especially hydroelectric and solar, and a vibrant private sector, giving Nigeria a unique opportunity to redefine energy access for millions. This National Energy Compact for Nigeria aims to accelerate the pace of access to electricity from 4 percent to 9 percent per annum and the pace of access to clean cooking from 22 percent to 25 percent per annum to achieve universal access by 2030. Nigeria is also committed to increasing the renewable energy share in the generation mix from 22 percent to 50 percent. The private sector will need to play an increasingly critical role towards meeting these targets, and Nigeria aims to mobilize US$15.5 billion in private investment for last mile electrification.

To achieve these ambitious targets, a time-bound and realistic action plan is included in the Compact. The action plan outlines the various reform actions to be taken across five pillars: (a) expanding power generation and investment into transmission and distribution infrastructure at competitive costs; (b)working towards financially viable utilities that provide reliable service; (c) incentivizing private sector participation to unlock additional resources; (d) embracing distributed renewable energy (DRE) and clean cooking solutions for affordable last mile access; and (e) leveraging the benefits of increased regional integration.
 

Recognizing that success requires collective effort, the Federal Government of Nigeria calls upon development partners, philanthropies, the private sector, and civil society to join this transformative journey in accelerating the pace of access to energy and help in mobilizing US$23.2 billion in financing needed for last mile electrification, including US$15.5 billion from the private sector. The Federal Government of Nigeria is committed to implementing the action plan included in the Compact to address the bottlenecks across the energy value chain to help in mobilizing the needed financing that will help provisioning of reliable, affordable, inclusive, sustainable, and clean energy and contribute to economic growth and development of the country and the region.