Saturday, 29 March, 2025
Nigeria, located in West Africa, is the continent’s most populous nation, with an estimated population exceeding 230 million, as of 2025[1]. Nigeria’s economy is driven primarily by its oil and gas sector, agriculture, services, and growing industrial base. As a member of the Organization of the Petroleum Exporting Countries (OPEC), Nigeria holds substantial proven oil reserves (over 37 billion barrels) and is ranked among the top natural gas producers globally, with over 200 trillion cubic feet (TCF) of proven gas reserves.[2]
Despite its rich resource base, over 40 per cent of the population lacks access to reliable electricity, with rural areas being particularly underserved. In response, the government is implementing ambitious reforms to address these issues, focusing on expanding renewable energy, improving energy infrastructure, and embracing energy transition pathways aligned with global sustainability goals.[3]
Nigeria's energy supply is quite renewable, with about 47 per cent coming from renewable sources. Biomass is the largest contributor, making up 43 per cent of the energy mix, mainly used for heating and cooking. Oil is also a major part of Nigeria's energy supply, similar in share to biomass. Natural gas, other renewables, and hydropower make up the rest of the energy mix, primarily used in the power sector. [4] The Renewable Energy Master Plan (REMP) aims to significantly boost Nigeria's renewable electricity supply. The goal is to increase the share of renewable electricity from 13% of total generation in 2015 to 23 per cent by 2025 and 36 per cent by 2030. By 2025, renewable electricity is expected to make up 10 per cent of Nigeria's total energy consumption.[5]
Nigeria's grid-based power systems have a total installed capacity of about 13 GW, but the actual available on-grid peak generation is much lower, around 4.5 GW. The majority of Nigeria's on-grid power generation comes from natural gas power stations, which account for 86 per cent of the total. The remaining 14 per cent is generated by large hydropower plants.[6]
Nigeria’s strategic location, abundant renewable energy potential (particularly solar and hydropower), and growing industrial and transportation sectors provide a strong foundation for emerging technologies such as green hydrogen. Positioned as a regional leader in West Africa, Nigeria is now exploring opportunities to integrate green hydrogen into its energy landscape, supporting decarbonization, energy security, and economic growth in the years ahead.
[1] Nigeria Population 1950-2025 | macrotrends
[2] NIGERIA’S OIL AND GAS RESERVES SOAR: NUPRC UNVEILS IMPRESSIVE FIGURES – Nigerian Upstream Petroleum Regulatory Commission
[3] Nigeria Electricity Access 1990-2025 | macrotrends
[4] NE23-nigeriaenergyroadmap-Report.pdf
In November 2021, during the COP26 conference in Glasgow, President Muhammadu Buhari announced Nigeria's goal to achieve net-zero emissions by 2060.[1] Following this, Nigeria's Energy Transition Plan (ETP) was introduced, which outlines the strategy to reach a net-zero emissions energy system by 2060. The energy sector is a significant contributor to Nigeria's greenhouse gas emissions, accounting for about 65 per cent of the total.[2]
The plan focuses on transforming how energy is produced and used, with an emphasis on emissions-free electricity, electric vehicles, energy efficiency, and carbon capture. Hydrogen is also a key component of this strategy. While the policies are in place, achieving large-scale implementation will require substantial investments and consideration of socio-economic factors. Active participation from the government, businesses, and individuals is essential to drive innovation and reduce costs across the value chain.
Nigeria is aiming to capture a significant portion of the global hydrogen market, which is projected to be worth USD 200 billion by 2030. The country plans to leverage its abundant renewable energy resources, especially solar and wind, to achieve this goal.[3]
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Nigeria has significant potential for renewable energy, particularly solar power. The country receives an average annual global horizontal irradiation between 1,600 and 2,200 kWh/m², with the highest values in the northern regions. The International Renewable Energy Agency (IRENA) estimates that Nigeria could technically generate up to 210 GW of solar photovoltaic (PV) power, even if only 1 per cent of suitable land is used. Additionally, concentrated solar power (CSP) has a potential of about 88.7 GW, mainly in northern Nigeria where direct normal irradiance is highest.[1]
Wind energy potential in Nigeria is moderate, with average wind speeds at 10 meters height ranging from 2.1 to 8 m/s. The highest wind speeds, over 7 m/s, are also found in the northern part of the country. Hydropower is another significant resource, with a large hydro potential of around 24 GW and a small hydro potential of about 3.5 GW, much of which remains untapped. [2] Additionally, Nigeria has substantial biomass resources, particularly agricultural residues, which could be used for power generation to help address the current energy crisis.
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Nigeria and China have signed a significant EURO 7.6 billion green hydrogen energy deal aimed at transitioning from fossil fuels to clean energy. The agreement was signed between the Federal Government of Nigeria, APPL Hydrogen Limited (AHL), and China's LONGi Green Energy Technology Company Limited (LGETCL). This partnership is expected to leverage Nigeria's abundant renewable energy resources, particularly solar and wind, to produce green hydrogen. The project aims to generate approximately 1.2 million tons of green hydrogen-based methanol annually for export, along with medical-grade oxygen and food-grade carbon dioxide.[1]