FG, Germany strengthen partnership with €21m boost for energy transition

Abdullateef Fowewe

The Federal Government of Nigeria has announced a significant leap in its energy transition efforts through a technical cooperation agreement with the Government of Germany.

This partnership according to a statement by FG formalised by a Joint Declaration of Intent on Bilateral Energy Transition Dialogue and Cooperation, seeks to accelerate Nigeria’s shift toward a sustainable, low-carbon energy future.

Germany has committed €21 million to support Nigeria’s renewable energy expansion and energy efficiency projects.

The funding includes €9 million for the ongoing Nigeria Energy Support Programme (NESP) and €12 million for the newly established Energy Transition Challenge Fund (ETCF).

These resources, coupled with platforms such as the Green Line of Credit for SMEs and the GET.invest private investment hub, aim to empower Nigerian entrepreneurs, small and medium enterprises, and energy developers to advance clean energy innovation.

The initiative will empower businesses and SMEs by providing access to vital funding, technical support, and investment opportunities to develop renewable energy solutions.

Communities and consumers stand to benefit from improved electricity access, greater reliability, and more affordable power as renewable energy projects expand nationwide.

Government officials will also gain strengthened capacity to carry out decarbonisation strategies and update regulatory frameworks critical to the energy sector’s modernisation.

In addition, private sector investors can expect clearer pathways for collaboration and partnerships with German companies, boosting confidence in Nigeria’s energy market and encouraging technology transfer.

Adebayo Adelabu, Minister of Power, highlighted the partnership’s shift from dialogue to “actionable technical assistance,” emphasizing its role in constructing “a comprehensive ecosystem for sustainable energy growth.”

He noted the alignment of this collaboration with other government initiatives, like the Presidential Power Initiative (PPI), aimed at modernizing Nigeria’s energy infrastructure and creating jobs within the renewable energy value chain.

The Federal Government concluded that this strategic investment “reflects a commitment to Nigeria’s clean energy future,” showing that “international collaboration, combined with domestic policy and private sector engagement, can accelerate the country’s transition to a resilient, low-carbon energy system.”