Page 213 - NEW ENERGIES Beyond Data

Energy Transition In Nigeria:

Challenges and Opportunities for

Economic Growth

Engr. Paul Iyogun
Performance Based Grant Project Manager

Nigeria is committed to achieving about 36% of its total electricity generation from renewable energy
sources as part of its contribution to the UN climate change goals. In alignment with this ambition, the
new Electricity Act mandates distribution companies to source approximately 10% of their power from
renewable energy. These initiatives aim to reduce greenhouse gas emissions and displace generators in
underserved and off-grid communities.

However, the nation’s transition to clean energy is hindered by several factors, chief among them being
access to finance. Renewable energy, though critical, often struggles to attract private investment compared
to sectors like oil and gas. Another challenge is the macroeconomic impact of the transition, exacerbated by

the lack of local production capacity and insufficient data to support electrification planning and policy-
making.

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