Mobilizing Investments for Clean Energy in Nigeria

The report outlines Nigeria's need for approximately $410 billion by 2060 to meet its Energy Transition Plan targets. It identifies three priority areas: scaling rural electrification via distributed solar, using natural gas as a transition fuel, and strengthening the national grid's transmission and distribution networks. To address these, the report proposes four solutions: increasing local currency (naira) funding to reduce exchange rate risks, establishing revenue assurance funds to mitigate off-taker risk for large-scale solar, creating technical assistance accelerators for local developers, and implementing policies to prioritize domestic natural gas production.

• Nigeria requires an estimated $410 billion by 2060 to achieve the energy access and transition targets set in its Energy Transition Plan (ETP), with an initial requirement of $10 billion in the first year.
• The off-grid solar market in Nigeria has grown by an average of 22% annually over the last five years. Solar mini-grids could potentially attract $9.2 billion in annual market investments, while mesh grids could save households and companies $4.4 billion per year.
• Despite having the capacity to generate 12,522 MW of electric power from existing plants, Nigeria's transmission and distribution infrastructure can only support the dispatch of slightly over 4,000 MW.
• Foreign exchange volatility and inflation (which reached approximately 16% in 2022) hinder clean energy investment, as developers often face long waits for official dollar rates and are forced to use black market rates that are over twice the official rate.
• Large-scale solar projects are frequently stalled due to off-taker risk and revenue collection issues within electricity distribution companies (DISCOs); specifically, 14 large-scale solar projects have been stalled for several years.
• While Nigeria has vast natural gas reserves, only about 1% are currently produced. Maximizing these resources could add approximately $18.3 billion in gross value added (GVA) to the local economy.
• The report proposes using blended finance and local currency facilities, such as those provided by InfraCredit, to reduce credit risk and attract domestic institutional capital like pension funds.

APA

World Economic Forum (2023). Mobilizing Investments for Clean Energy in Nigeria. https://www3.weforum.org/docs/WEF_Mobilizing_Investment_for_Clean_Energy_in_Nigeria_2023.pdf

Chicago

World Economic Forum. Mobilizing Investments for Clean Energy in Nigeria. 2023. https://www3.weforum.org/docs/WEF_Mobilizing_Investment_for_Clean_Energy_in_Nigeria_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Mobilizing Investments for Clean Energy in Nigeria |date=May 2023 |url=https://www3.weforum.org/docs/WEF_Mobilizing_Investment_for_Clean_Energy_in_Nigeria_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023mobilizing, author = {{World Economic Forum}}, title = {{Mobilizing Investments for Clean Energy in Nigeria}}, institution = {World Economic Forum}, year = {2023}, month = may, url = {https://www3.weforum.org/docs/WEF_Mobilizing_Investment_for_Clean_Energy_in_Nigeria_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }