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FG Needs $410bn to Deliver Energy Transition by 2060 – Osinbajo

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By Mathew Dadiya, Abuja

Vice President Yemi Osinbajo has said the Federal Government will require $410 billion to deliver the nation’s Energy Transition Plan by 2060.

The projection came as the World Bank and the US EXIM Bank have offered to provide $3 billion as implementation support to the Federal Government of Nigeria.

The Vice President announced this during his remarks on Wednesday, in his office at the global virtual launch of the Nigeria’s Energy Transition Plan – a roadmap to tackle the dual crises of energy poverty and climate change.

Osinbajo said Africa’s increasing energy gaps required collaboration to take ownership of the continent’s transition pathways.

On the need to have a peculiar transition plan, the Vice President said “for Africa, the problem of energy poverty is as important as our climate ambitions. Energy use is crucial for almost every conceivable aspect of development. Wealth, health, nutrition, water, infrastructure, education, and life expectancy are significantly related to the consumption of energy per capita.”

He highlighted the significant scale of resources required to attain both development and climate ambitions adding that Nigeria would need to spend $410 billion above business-as-usual spending- to deliver the Transition Plan by 2060. This, he noted would translate into spending about $10 billion annually. 

The Vice President explained that “the average $3billion per year investments in renewable energy recorded for the whole of Africa between 2000 and 2020 will certainly not suffice.”

Osinbajo said that the inter-ministerial Energy Transition Implementation Working Group he chaired was engaging with partners to secure an initial $10 billion support package ahead of COP27 along the lines of the South African Just Energy Transition Partnership announced at COP26 in Glasgow.

At the virtual event, Mr. Shubham Chaudhuri, Nigeria Country Director for World Bank said the bank plans “to commit over USD 1.5 billion towards the Energy Transition Plan on renewable energy, on power sector reforms, on clean cooking, and wherever opportunities arise.”  

Similarly, Mr. Adam Cortese, CEO, Sun Africa stated that “the launch of Nigeria’s Energy Transition Plan has further accelerated our efforts, proving Nigeria to be fertile grounds for investments in the sector. We are in the final stages of discussion with US EXIM Bank on a USD 1.5 billion financing package.” 

Commenting on the effects of Climate Change in Africa, Osinbajo explained that “climate change threatens crop productivity in regions that are already food insecure, and since agriculture provides the largest number of jobs, reduced crop productivity will worsen unemployment.”

Noting that African nations were rising to the challenge of climate change by signing the Paris Agreement, the Vice President said the current lack of power hurt livelihoods and destroy the dreams of hundreds of millions of young people.

He added that though Africa’s current unmet energy needs were huge, future demand would be even greater due to expanding populations, urbanization, and movement into the middle class. 

Maintaining the the nation’s energy plan was to engage the world, Osinbajo insisted that there was a need for African countries to engage critically on the challenge of climate change.

One of the aspirations of the plan, according to Osinbajo, was the creation of about 340,000 jobs by 2030, and 840,000 by 2060 adding that it also presented a unique opportunity to deliver a true low-carbon and rapid development model in Africa’s largest economy.

Aside the transition plan, the Vice President also announced the launch of the Universal Energy Facility “an innovative, results-based, finance programme that focuses specifically on scaling up electricity access for productive uses.”

Speakers at the event commended Nigeria’s leadership and pioneering role in the region, emphasizing the need for data-driven country-level.

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Business News

News Engineering, Indian Firm Partner for Niger State’s 100MW Solar Project

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From  Dan Amasingha, Minna

​In a major bid to bolster renewable energy infrastructure in North-Central Nigeria, News Engineering Nigeria Limited, in partnership with India-based Mahashakti Energy, has formally declared interest in executing Niger State’s proposed 100-megawatt (MW) solar power project.

​The multi-million-dollar clean energy initiative is slated to be funded by the Islamic Development Bank (IsDB).

​The Managing Director and Chief Executive Officer of News Engineering, Lady Josephine Nwaeze, disclosed this during a strategic visit to Governor Mohammed Umaru Bago at the Niger State Liaison Office in Abuja.

​Leading a joint delegation of both firms, Lady Nwaeze noted that the visit was designed to present the consortium’s technical capability, track record, and readiness to deliver the project in line with international best practices. 

She praised the Bago-led administration for improving security and creating an enabling environment for private sector-driven development.

​Presenting the consortium’s technical profile, Business Development Manager at News Engineering, Engr. Henry Akoji, highlighted the firm’s extensive footprint in Nigeria’s power sector. He revealed that News Engineering has successfully executed over 1,000 electrical installation projects nationwide, spanning high-voltage transmission lines, power distribution networks, and rural electrification infrastructure.

​”Our renewable energy division has deployed over 100 solar mini-grid projects and distributed approximately 5,000 solar home systems across the country,” Akoji stated. 

He emphasized the company’s end-to-end expertise in substation design, transmission line upgrades, project management, and technical capacity building.

​Adding a global perspective, the Director of Mahashakti Energy, Ashok Kansal, highlighted his firm’s specialization in power loss reduction and sustainable grid management. Kansal pointed to successful interventions in India, where Mahashakti reduced aggregate technical and commercial (ATC) losses by 30 to 40 percent.

​He assured the governor that the partnership would leverage cutting-edge technology in solar evacuation and distribution infrastructure to minimize energy losses and guarantee a stable power supply across Niger State.

​Responding to the proposal, Governor Bago commended both entities for their presentation and demonstrated capacity. However, he emphasized that the state government would conduct rigorous due diligence and technical audits on their past projects before finalizing any contractual agreement.

​The proposed 100MW solar initiative forms a cornerstone of Niger State’s broader strategy to bridge its energy deficit, drive industrialization, and expand electricity access.

 The state government is expected to complete its technical evaluation before announcing a preferred partner for the Is isDB-backed project.

​

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Energy and Power

Diri Urges Patience On Bayelsa Independent Power Project

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‎

‎From Mike Tayese, Yenogoa

Governor of Bayelsa State, Senator Douye Diri, has sued for patience on the ongoing installation of the state’s independent power project.

The 60-megawatt gas turbine project, which installation commenced in October this year, was earlier scheduled to be completed by December but suffered some logistical delay.

He called on people of the state to have an open mind about the project, which he said now requires a new completion date due to unforeseen challenges.

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Diri, who undertook an on-the-spot-assessment of the project at Elebele in Ogbia Local Government Area on Wednesday, said like other Bayelsans, he was also disappointed that the December completion deadline could not be met.

He, however, stated that his reaction to the delay had been that of understanding rather than being angry as had been noticed, particularly on the social media.

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‎”You can see I have  gone round the whole facility. It was based on the working agreement and information available at my disposal that I gave the December date. But as it is with every human endeavor, we must all have an open mind, when it comes to issues, particularly technical matters like this.

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‎”I am as disappointed as any other Bayelsan because I believed that we were going to celebrate the 2025 Christmas with our own independent power, but it turned out not to be so.

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‎”I call on Bayelsans to have an open mind. These technical experts are working virtually 24 hours, but delays like this will certainly come” he stated.

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‎The state’s helmsman implored the people to appreciate the work of the engineers, stressing that a minor mistake was capable of jeopardising the millions of dollars expended on the project.

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‎”For 29 years Bayelsa has been in darkness or has endured epileptic power supply. Now that we are getting close to the day of liberation, some people have become impatient. Let us not behave like the proverbial tortoise in the prison for years that asked to be released immediately as the place was smelling the moment he knew it would regain freedom the next day.‎”

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‎Governor Diri gave a thumps up to the technical partners, Jampur Group, and its team on ground as well as the Managing Director of the Bayelsa Electricity Company Limited, Engr. Olice Kemenanabo, saying they were working round the clock to ensure the job was completed. 

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‎”Those who have been following me on this inspection would know that work has not stopped even for one day since it started. I am sure the job is more than 90 per cent complete. So let us hold our fire. 

“Engineer Olice, I am not putting you under any pressure. From the reports I have, Olice is one of the best electrical engineers in Nigeria.”

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The governor, however, hinted that the government was looking at inaugurating the project during its sixth anniversary in February. 

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The MD of the Bayelsa Electricity Company Limited, Kemenanabo, who also spoke, said the state was on the right track towards actualising the project and assured that the alignment of the entire system, including the gas generator and alternator were on course. 

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He also stated that the remaining two turbines would be delivered to the project site in a few days. 

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‎Speaking on behalf of the Jampur Group, Mr. Sherrif Abu-Anif said the company was in good position to meet its own end of the bargain and appreciated the state government for playing its part very well.

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Business News

Edun Seeks Liquidity for Power Sector as NDPHC Declares Calabar Best Power Plant

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By Eze Okechukwu, Abuja

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun yesterday declared that liquidity was the major hindrance required by the troubled power sector to achieve the desired result of producing steady Power in Nigeria.

This is as the Managing Director of Niger Delta Power Holding Company (NDPHC) Chiedu Ugbo informed the Senate Committee on Power in Abuja yesterday that the Calabar Power Generation Company under its ownership was the best performing power plant in the country.

In his submission to the Committee investigating the controversial Make up Gas (MUG) Reprocessing Deal Involving the Ministry of Finance, NDPHC, Calabar Generation Company Limited and ACUGAS Limited, the Minister of Finance pointed out that the need for liquidity into the Power Sector remained the key to unlocking it.

The Minister who made the submission through his Special Assistant, Mallam Dahiru Moyi said the agreements on Gas supply between NPDHC and ACUGAS Limited was inherited by former President Muhammadu Buhari in 2015, following after the agreement was signed in 2011 during President Goodluck Jonathan’s administration.

According to him, “just as the Ministry of Justice was not aware of the contract agreement, the Ministry of Finance was also not part of it from the beginning but since government is a continuum, the Ministry of Finance later came into it for the purpose of facilitating the required liquidity.

“The issues on ground about contracts agreements being investigated by the Senate Committee on Power is not about restructuring but providing the required liquidity which the Ministry of Finance is doing through collaboration with the Nigerian Liquified Natural Gas (NLNG).

 “Since NLNG pays Gas in Dollars, the Ministry is collaborating with it for a practical solution of bringing liquidity into the age long contract agreement through Deed of Transfer.

“Make Up Gas (MUG) belongs to Calabar, Calabar belongs to NDPHC and NDPHC belongs to Federal and State governments with the Federal Government having 52.68%”, he said.

In his own submission before the Committee, the Managing Director of NDPHC, Chiedu Ugbo said the company as a result of the Gas supply agreement with ACUGAS Limited was taking Gas from three out of five units and generating power from Calabar plant to the National Grid which according to him was the best power plant in the entire country.

He said NDPHC went out of its way to construct an 80 kilometres gas pipeline for utilization of MUG in Calabar and Alaoji power plants.

He however lamented that problems relating to systemic transition, frequency and voltage issues have not made the firm achieve the desired results.

In his remarks, the Chairman of the Committee, Senator Enyinnaya Abaribe (APGA, Abia South) thanked the stakeholders for giving the Committee clarity on the issue but added that it was still an ongoing investigation.

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