UPDATED: Climate Change: Nigeria reaffirms commitment to Just Energy Transition

Nigeria is committed to pursuing a just and equitable energy transition, Minister of Budget and Economic Planning Abubakar Bagudu said on Tuesday in Abuja.

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The minister, who was the keynote speaker at the Global South Peer Learning Workshop on Country Platforms for Climate Action and Just Energy Transition, stated that the country had established institutions diligently implementing its Energy Transition Plan.

“Our Energy Transition Plan (ETP) is a homegrown, data-backed strategy for achieving net-zero emissions fairly and equitably by 2060,” he told the participants, explaining that the plan, unveiled in 2022, has become the country’s national policy, providing a framework that aligns climate ambition with the country’s development needs.
He stated that the country had prioritised five sectors, including power, transport, cooking, oil and gas, and industry, which account for about 65 per cent of Nigeria’s total greenhouse gas emissions. He added that universal energy access, poverty reduction, economic growth, and job creation remained the nation’s goals.
Mr Bagudu noted that Nigeria’s energy transition plan is multifaceted, targeting emission reductions and enhancing sustainability across all key economic sectors.
He said, “Decarbonising power is central to our strategy in the power sector. Nigeria plans to aggressively expand its generation capacity through renewable sources, such as solar and wind, while strengthening its national grid and distribution networks.

“The transport sector’s priority is to reduce emissions through a two-pronged strategy that involves shifting to cleaner fuels and vehicles while expanding mass transit. Nigeria is promoting Compressed Natural Gas (CNG) and Electric Vehicles (EVS) to replace gasoline and diesel in road transport.”

He pointed out that the Presidential CNG Initiative was launched to convert mass transit vehicles to run on CNG, utilising gas reserves to reduce tailpipe emissions and lower fuel costs.

He informed the audience that President Bola Ahmed Tinubu unveiled a bold initiative to launch an initial fleet of 100 electric buses in Nigeria’s major cities, while prioritising cooking and household energy to facilitate the swift replacement of traditional firewood, kerosene, and charcoal.

He added that the federal government had significantly increased access to Liquefied Petroleum Gas (LPG), distributed LPG cylinders and stoves, and implemented policies to ensure LPG was affordable and available.

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Mr Bagudu emphasised that Nigeria has undertaken significant policy and regulatory reforms to create an enabling environment for its climate goals.

He cited the “Climate Change Act of 2021” as landmark legislation that provides a legal framework for climate action across all sectors.

The Act, the minister stated, establishes systems to incorporate climate considerations into national planning and outlines five-year carbon budgets with annual emissions targets.

Mr Bagudu stated, “It (the Act) also establishes the National Council on Climate Change (NCCC) to oversee the implementation of climate policies and ensure that the country stays on track toward the net-zero 2060 target.

“Additionally, Nigeria has updated its Nationally Determined Contribution (NDC) under the Paris Agreement, enhancing the targets and aligning them with the net-zero vision. For instance, Nigeria enacted the Electricity Act 2023 in the power sector, liberalising the electricity market and allowing state governments and private investors to generate, transmit, and distribute power.

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“In the oil and gas sector, the Petroleum Industry Act (PIA) 2021 overhauled the regulatory framework for the industry. The PIA includes provisions that support the country’s climate objectives; for example, it increased penalties for gas flaring and requires companies to develop gas utilisation plans, encouraging investments in gas processing facilities that support a transition fuel strategy, the establishment of the Host Communities Fund that can finance local environmental and development projects, and aid just transition efforts in oil-producing regions.”

The minister stated that Nigeria had established innovative institutional mechanisms to cohesively drive its Energy Transition Plan and climate agenda.

He explained, “The National Council on Climate Change (NCCC) is at the apex. This is complemented by the Energy Transition Inter-Ministerial Working Group, a high-level body implementing the Energy Transition Plan (ETP).”

Mr Bagudu pointed out that Nigeria recognised climate change as a global phenomenon that no country can tackle alone, emphasising that the government has been active on the international stage, championing the interests of the Global South and forging partnerships for climate action.

“Nigeria’s diplomacy is guided by the principle of ‘common but differentiated responsibilities,’ acknowledging that while all nations must act on climate, developed countries should support developing nations with finance and technology,” he said.

During the United Nations Framework Convention on Climate Change (UNFCCC) negotiations, the minister stated that Nigeria continues to be a key player in the African Group of Negotiators and the G77+China coalition, advocating for outcomes that reflect Africa’s needs.

He stated that Nigeria strongly supported the establishment of a Loss and Damage Fund at COP27 to assist vulnerable countries in mitigating the impacts of climate-related disasters.

He stated that Nigeria also emphasised adaptation through the Africa Adaptation Initiative and other platforms, arguing that adapting to climate impacts (droughts, floods, desertification) is as urgent as mitigation.