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Germany Commits $24.3 Million to Power Nigeria's Energy Transition

Germany Commits $24.3 Million to Power Nigeria's Energy Transition
Monday, 10 November 2025 16:06
  • Germany committed €21 million ($24.28 million) to fund Nigeria's clean energy transition and capacity building.
  • The funding targets the existing Nigeria Energy Support Programme (€9M) and the newly created Energy Transition Fund (€12M).
  • Nigerian Energy Minister Adebayo Adelabu hailed the deal as a shift from dialogue to concrete technical assistance.

Germany granted €21 million ($24.28 million) to Nigeria to support its energy transition and strengthen its clean energy capacity. A statement from the Nigerian presidency published the financing announcement on Saturday, November 8, 2025.

This financing allocates €9 million to the Nigeria Energy Support Programme (NESP) and €12 million to the newly created Energy Transition Fund (ETCF). The funds will primarily accelerate renewable energy development, enhance energy efficiency, and promote the transition toward a low-carbon model.

Nigerian Minister of Power, Adebayo Adelabu, praised the agreement. Adelabu emphasized the agreement marks "the passage from dialogue to concrete technical assistance," establishing the foundations for an ecosystem supporting sustainable energy growth.

Climate Parliament notes Nigeria possesses vast, under-utilized potential in solar, wind, hydro, and biomass energies. Insufficient electrical infrastructure, complex regulatory procedures, and a lack of investment currently hamper the sector's development.

To leverage this immense energy potential, the Energy Commission of Nigeria (ECN) signed a Memorandum of Understanding (MoU) in October 2025. The deal secures a €100 million investment from London-based UNIDACO Limited targeting the energy transition. Additionally, a €20 million grant, financed by KfW Development Bank and the Africa Enterprise Challenge Fund, supports renewable energy development and local skills enhancement.

Nigeria targets carbon neutrality by 2060. Consequently, the government implemented the "Energy Transition Plan" (ETP). This plan defines a timetable and framework for reducing emissions across five key sectors: power, cooking, oil and gas, transport, and industry.

This article was initially published in French by Ingrid Haffiny (intern)

Adapted in English by Ange Jason Quenum

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