• Nigeria targets $410B for clean energy, 277 GW by 2060
• Power demand rising amid population growth, fiscal strain
• Reforms, private investment key to energy sector overhaul

Nigeria plans to raise about $410 billion by 2060 to overhaul its power system and expand clean energy sources, Vice President Kashim Shettima said during the opening of the Nigerian Renewable Energy Innovation Forum 2025, held Oct. 14-15. According to local media reports dated Oct. 21, the target is to reach an installed power capacity of 277 gigawatts (GW), up sharply from the current operational capacity of 13–15 GW.

The ambitious plan comes as public finances remain under pressure. The projected 2025 federal budget of roughly $36 billion includes an estimated $8.5 billion deficit, representing nearly a quarter of government spending. Nigeria’s public debt stood at nearly $97 billion in the first quarter of 2025, according to the Debt Management Office.

The government is seeking to balance its energy goals with fiscal discipline through financial reforms and private investment. In August 2025, it approved a $2.6 billion refinancing plan to clear debts owed to 27 power producers between 2015 and 2023.

Meanwhile, electricity subsidies have been reduced by 35% after a targeted tariff hike, easing pressure on the national treasury. Local reports indicate that more than $400 million has already been committed to domestic production of solar panels, batteries, and electricity meters.

The World Bank estimates that only 61% of Nigerians had access to electricity in 2023. With a population growing by 2.5% to 3% annually, Nigeria could add 130 million people by 2050. Rapid population growth and industrial expansion are driving up demand. The International Finance Corporation projects that electricity consumption could double by 2030.

A 2023 study in Energy Research & Social Science found that the power sector loses about $1.9 billion annually, more than the federal health budget, due to technical inefficiencies, unpaid bills, and high grid costs, which threaten the system’s long-term viability.

Abdel-Latif Boureima