Germany granted €21 million ($24.28 million) to Nigeria to back its energy transition and build its clean energy capacity.
The funding splits into €9 million for the Nigeria Energy Support Programme (NESP) and €12 million for the new Energy Transition Fund (ETCF). These funds will accelerate renewable energy projects, improve energy efficiency, and support the shift to a low-carbon economy.
Nigerian Minister of Power, Adebayo Adelabu, welcomed the deal. He highlighted that it moves the process from discussion to practical technical support, laying the groundwork for sustainable energy growth.
Climate Parliament points out that Nigeria has large, untapped solar, wind, hydro, and biomass resources. But weak electrical infrastructure, complex regulations, and limited investment slow the sector’s development.
To tap into this potential, the Energy Commission of Nigeria (ECN) signed a Memorandum of Understanding (MoU) in October 2025. The agreement secures a €100 million investment from London-based UNIDACO Limited for the energy transition. On top of that, a €20 million grant from KfW Development Bank and the Africa Enterprise Challenge Fund will support renewable energy projects and local skills training.
Nigeria aims to reach carbon neutrality by 2060. The government launched the Energy Transition Plan (ETP), which sets a timeline and framework to cut emissions across power, cooking, oil and gas, transport, and industry.
source: www.ecofinagency.com
African Energy Council