Speaking at the event, the Minister of Power, Joseph Tegbe, said the country’s Energy Transition Plan (ETP) was not merely an environmental commitment but a comprehensive economic roadmap designed to unlock long-term growth and stability
KaNo —
The Federal Government has projected that Nigeria could save up to $121 billion in fuel costs by transitioning to a power generation mix dominated by renewable energy.
It describe the move as a critical economic strategy capable of reducing costs for businesses, households, and government operations.
The government made this known on Wednesday during the Lagos Chamber of Commerce and Industry’s 2026 Renewable Energy Outlook Conference held in Lagos.
During the event,policymakers and private sector stakeholders gathered to discuss the future of Nigeria’s power sector and strategies for driving industrial competitiveness.
Speaking at the event, the Minister of Power, Joseph Tegbe, said the country’s Energy Transition Plan (ETP) was not merely an environmental commitment but a comprehensive economic roadmap designed to unlock long-term growth and stability.
According to him, the plan envisions a power generation mix comprising up to 90 per cent renewable energy, which could deliver massive cost savings over time.
He added that while achieving this target would require an estimated additional capital expenditure of about $10 billion annually above current levels, such spending should be seen as a strategic investment rather than a financial burden.
“The additional capital expenditure required is not a burden to be mourned; it is an investment to be mobilised,” he stated.
The conference, themed “Nigeria’s Energy Transition Agenda: Power Sector Transformation for Industrial Competitiveness,” provided a platform for stakeholders to assess ongoing reforms and identify opportunities for private sector participation in the country’s evolving electricity market.
Tegbe noted that the Energy Transition Plan targets a total installed electricity generation capacity of 277 gigawatts by 2060, with solar energy expected to play a dominant role in the future energy mix.
“The ETP outlines the need for a total installed power capacity of 277 gigawatts by 2060. Solar energy will be the dominant force in this new landscape,” he said.
According to the minister, this progress is driven by the country’s abundant solar resources, increasing private sector investments, and supportive policy environment.
Despite the focus on renewables, Tegbe emphasised that natural gas would continue to play a vital role as a transition fuel, ensuring energy stability as renewable capacity expands.
“With proven reserves of approximately 202 trillion cubic feet, Nigeria possesses the gas endowment to maintain reliable baseload capacity whilst renewables are scaled. Gas is not our destination, but it is an indispensable companion on the journey,” he explained.
He urged stakeholders in the manufacturing and industrial sectors to begin shifting away from reliance on diesel generators and embrace cleaner and more efficient energy solutions enabled by recent reforms in the electricity sector.
“I say to manufacturers, processors, logistics operators, and technology firms: the era of the diesel generator as your primary power source is drawing to a close,” Tegbe said.
He pointed out that new opportunities have emerged under the Electricity Act 2023, including embedded generation, industrial mini-grids, renewable energy procurement agreements, and direct connections to independent power producers.
He added that revenues within the sector nearly doubled between 2023 and 2025, rising from about N850 billion to over N1.5 trillion.
Tegbe called on the organised private sector to deepen its involvement in ongoing reforms, particularly at the state level, where new electricity markets are being developed.
“We need the private sector to participate actively in state electricity market consultations, ensuring that tariff frameworks, grid access rules, and renewable energy procurement mechanisms are commercially sound,” he said.
Also speaking at the conference, the Managing Director and Chief Executive Officer of the Rural Electrification Agency, Abba Aliyu, stressed that renewable energy must evolve beyond its traditional role of providing basic electricity access in rural communities.
According to him, the next phase of Nigeria’s energy transition should focus on using renewable energy to drive industrialisation, manufacturing growth, and digital infrastructure development.
Aliyu noted that the global economy is becoming increasingly dependent on electricity due to advancements in artificial intelligence, data centres, electric mobility, and high-tech manufacturing processes.
“The future economy will be electricity-intensive, and countries that cannot provide reliable, affordable, and clean power will struggle to compete,” he said.
He explained that Nigeria has a unique opportunity to leverage renewable energy to strengthen its manufacturing base, create jobs, boost exports, and position itself as a regional hub for clean energy.
Aliyu highlighted the importance of decentralised energy solutions such as mini-grids, solar-plus-storage systems, and distributed energy resources, describing them as essential infrastructure for economic growth.
“A mini-grid that powers homes changes lives. But a mini-grid that powers homes, a rice mill, a cold room, a welding cluster, a clinic, a digital services hub, and a market changes an economy,” he said.
He further observed that the continued reliance on diesel generators by manufacturers has significantly increased production costs, reduced competitiveness, and limited expansion opportunities.
Aliyu urged policymakers, investors, and industry leaders to accelerate the deployment of renewable energy systems while ensuring proper regulatory frameworks, grid integration, and market coordination.
The conference concluded with a strong consensus among stakeholders on the need for deeper collaboration between government and the private sector to unlock investment, improve energy reliability, and support Nigeria’s transition to a cleaner and more competitive economy.
Experts at the event emphasised that while the transition to renewable energy would require significant investment and structural adjustments, the long-term benefits—including cost savings, improved energy access, environmental sustainability, and economic growth—far outweigh the initial challenges.
As Nigeria continues to grapple with persistent power shortages and high energy costs, the shift towards renewable energy is increasingly seen as both an economic necessity and a strategic opportunity to reposition the country for sustainable development in the decades ahead.
