Nigeria and Germany have signed a €20 million (~N35.5 billion) renewable energy deal to support Nigeria’s clean energy goals and help the country move away from fossil fuels.
The agreement was signed on Wednesday and will be carried out through the KfW Development Bank and the Africa Enterprise Challenge Fund (AECF).
According to a statement from the Ministry of Budget and Economic Planning, the deal is described as a grant that will promote renewable energy use and support job training in the energy sector.
“This agreement will help Nigeria use more clean energy and give young people and women more economic opportunities,” said Abubakar Bagudu, Nigeria’s Minister of Budget and Economic Planning.
The minister said the project focuses on three key goals:
- Helping people switch to solar and other renewable energy sources.
- Providing training for energy-related jobs.
- Reducing Nigeria’s reliance on oil and gas.
He added that the project will increase energy access for underserved communities and support sectors like healthcare and education.
“We also want to make sure different development programmes work together, so we don’t repeat the same things,” Bagudu said.
Dr Karin Jansen, First Secretary at the German Embassy in Nigeria, described the agreement as part of Germany’s longstanding commitment to Africa’s energy future.
“This is a big step, especially as Germany celebrates 50 years of its Energy Transition Challenge Fund,” she said.
Also at the event was Gerald Keuhnemund, a representative of KfW Development Bank, which has been instrumental in financing climate-related projects across Africa.
What you should know
Germany has consistently increased support for African climate action.
Its energy investments across several African countries are focused on renewable energy projects, particularly mini-grids and solar farms.
This new deal aligns with Nigeria’s national efforts.
The renewable deal will go a way in addressing power shortages in Nigeria, where an estimated 150 million people are without access to reliable electricity.
Early this year, the country completed its first ever interconnected mini grid infrastructure at a reported cost of over $9.2 million.
1 Euro = 1,779 Naira