Nigeria Needs to Turn Energy Policies into Real Projects, Says Official

The Presidency has called on Nigeria to turn its energy policies and climate promises into projects that can attract the investments needed to change the country's energy sector.

Ibrahim Shelleng, the Senior Special Assistant to the President on Climate Finance and Stakeholder Engagement at the National Council on Climate Change (NCCC), made this statement at the first Sustainable Energy Summit held by BudgIT Foundation in Abuja on Wednesday.

The summit was themed "Financing Nigeria’s Energy Future: Closing the Gap Between Policy Commitment and Investment." It brought together government officials, development partners, private sector representatives, and civil society groups to discuss how Nigeria can connect its energy policies with actual investment.

Mr Shelleng stated that Nigeria has the necessary policies, natural resources, and investment opportunities to change its energy sector. But there is no reliable connection between policy promises and projects that can attract investment.

"What we still lack is a sufficiently reliable bridge between policy commitments and investable transactions. And that is the gap we must now close," he said.

Nigeria’s Energy Transition Plan estimates that the country will need about $1.9 trillion in investment to reach net-zero emissions by 2060. This includes around $410 billion more than what would typically be spent.

Mr Shelleng pointed out that this figure should not be seen just as a financial burden but as a great investment opportunity in areas like renewable energy, gas infrastructure, electricity transmission and distribution, clean cooking, electric mobility, industrial energy efficiency, battery storage, green hydrogen, and decentralized energy systems.

He explained that the main challenge is not the availability of global capital but why not enough of it is reaching viable Nigerian projects at affordable costs and within reasonable time.

"An inspiration is not yet an investment opportunity. A policy announcement is not a bankable project," he emphasized.

He added that investors need feasibility studies, credible demand assessments, permits, land documentation, environmental safeguards, reliable financial models, clear revenue arrangements, and risk management plans before they invest.

Mr Shelleng mentioned that regulatory uncertainty, institutional fragmentation, currency risks, inflation, limited access to long-term naira financing, and inadequate early-stage capital are some reasons that discourage investment in Nigeria’s energy sector.

On the role of public finance in the energy transition, Mr Shelleng said the government cannot finance this alone. Instead, it should use public and concessional funds to lower investment risks and attract more private capital.

He stated that public resources should focus on early-stage project development, public infrastructure, and underserved markets where government help can improve the commercial viability of energy projects.

Mr Shelleng also urged pension funds, insurance companies, commercial banks, development finance institutions, and the capital market to play a bigger role in financing the country’s energy transition.

He suggested that projects generating revenue mainly in naira should, when possible, be financed with local currency to reduce risks from foreign exchange changes.

He also called on Nigerian financial institutions to improve their ability to assess renewable energy, energy efficiency, and other climate-related investments. He noted that lack of familiarity with these projects could lead to them being wrongly seen as too risky.

The concerns raised at the summit come as Nigeria faces a huge financing need for its energy transition.

In December 2025, PREMIUM TIMES reported that the Nigerian Extractive Industries Transparency Initiative (NEITI) told lawmakers Nigeria would need about $1.9 trillion to meet its net-zero energy targets by 2060.

NEITI stated that around $410 billion of this amount would be needed for gas infrastructure and warned that inadequate financing could hinder the country’s energy transition.

The federal government has set an ambitious goal to mobilize climate finance.

In January, President Bola Tinubu stated Nigeria aims to mobilize up to $30 billion each year in climate and green industrial finance as the government works to speed up energy transition reforms and improve electricity access.

Mr Shelleng said achieving these goals will need a stable and coordinated policy environment where investors can clearly understand the approval process, tariff arrangements, contractual obligations, and ways to resolve disputes.

He noted that the Electricity Act has opened up chances for states to be more involved in electricity market development. But he warned that this decentralization needs to be matched with regulatory coordination and institutional capacity.

Tengi George-Ikoli, Country Manager of the Natural Resource Governance Institute (NRGI), also spoke. She said Nigeria's energy transition cannot happen without enough, affordable, and fair climate finance.

Ms George-Ikoli stated Nigeria is at a crucial point in its transition, facing climate change effects while having major potential for renewable energy investments.

"The climate ambition that we might have, the energy future we want to see, cannot be realized without capital. Otherwise, it remains an aspiration," she said.

She called for Nigeria to engage more actively in shaping the global climate finance system and ensure that funding available to fossil fuel-producing countries is fair, credible, accessible, and usable.

She urged participants to move beyond just setting goals and develop practical ways to mobilize finance and deliver projects.

The push for new financing methods is already in motion.

In March, PREMIUM TIMES reported that the House of Representatives Committee on Renewable Energy supported a private-sector idea to set up Nigeria’s first dedicated Green and Climate Finance Bank.

The promoters of this proposed bank aim for $100 million in initial capital and plan to use it to raise funds for climate-smart investments and Nigeria’s clean energy transition.

Nigeria has also seen investment commitments in renewable energy.

In October 2025, the federal government announced over $400 million in new investment commitments into the country’s renewable energy manufacturing sector, which includes solar panels, smart meters, battery storage, and recycling. These investments are expected to create over 1,500 direct jobs.

Vahyala Kwaga, Country Director of BudgIT Nigeria, mentioned that the shifting global energy market offers Nigeria a chance to draw more investments into renewable energy and diversify its economy.

Mr Kwaga noted that a 2026 NRGI study mentioned at the summit found global investment in green energy grew tenfold between 2019 and 2024.

He said Nigerian firms received about a fifth of Africa's mini-grid financing from 2019 to 2023, and Nigeria has also become a major recipient of international public finance for clean energy.

He stressed that these trends make it essential for Nigeria to have "honest and pragmatic conversations" about how to finance its energy future.

Helen Bodunde, National Secretary of Resource Justice Network Nigeria, said Nigeria’s energy policies must match with real financial commitments.

Ms Bodunde called for more use of blended finance, public-private partnerships, and climate-aligned financial tools to move projects from policy documents to real action.

She also called for more investment in human capacity and for communities, women, and young people to benefit directly from the energy transition.

"Promises alone cannot power homes, industries, or dreams," she said.