In 2017, Nigeria supplied 77% of its primary energy with bioenergy, primarily traditional biomass, driven by low access to electricity. Oil is the second largest source of primary energy, accounting for 13% in 2017. Nigeria’s COVID-19 stimulus plan includes a domestic gas utilisation programme aimed at reducing the country’s reliance on oil and a solar homes program. Investing in natural gas expansion increases the risk of stranded assets and is a missed opportunity for further renewable energy investment. Remaining energy supply comes from gas (10%), renewables (0.4%) and coal (0.02%).
Natural gas supplies about 77% of electricity generation in Nigeria. The remaining generation is supplied almost entirely by hydropower. Nigeria’s 2015 National Renewable Energy and Energy Efficiency Policy (NREEEP) targets over 23 GW of renewable capacity including large hydropower by 2030; however, Nigeria is not on track to meet this target.
Nigeria’s 2018 draft revised National Energy Policy includes a target to reduce energy-related GHG emissions to 15% in the long-term. The policy also targets a 30% share of coal in the country’s energy mix by 2030, though little progress has been made. The oil and gas sector accounted for 56% of government revenue in 2019. Nigeria’s economy entered into recession in 2016 following the fall in international oil prices and again impacted by oil price collapse in 2020 due to COVID-19.
Nigeria approved its revised National Climate Change Policy in June 2021, though details of the policy are not yet available.