Nigeria to save $121bn via renewable energy adoption

Nigeria stands to save $121 billion in fuel costs by shifting its power generation mix to 90% renewable energy, the Federal Government announced. This projected saving is seen as a significant economic benefit for businesses, households, and the government itself. The government is actively encouraging greater private sector involvement in renewable energy investments and electricity market reforms to enhance industrial competitiveness and accelerate economic growth.

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The ETP projects that transitioning to 90 per cent renewable energy in our power mix will yield fuel savings of $121bn. These are savings that will accrue to Nigerian businesses, Nigerian consumers, and the Nigerian state. The additional capital expenditure required, approximately $10bn annually above business-as-usual, is not a burden to be mourned; it is an investment to be mobilised.

Minister of Power, Joseph Tegbe, stated at the Lagos Chamber of Commerce and Industry's 2026 Renewable Energy Outlook Conference that Nigeria's Energy Transition Plan (ETP) positions renewable energy as a core economic strategy, not just a climate commitment. The ETP projects that the transition will yield substantial fuel savings, with the required additional capital expenditure of approximately $10 billion annually viewed as a necessary investment rather than a burden.

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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. Nigeria and South Africa led Africa in solar power growth in 2025, and that leadership position is not accidental

The conference brought together government officials and private sector stakeholders to discuss the future of renewable energy and power sector reforms. The ETP aims for a total installed electricity generation capacity of 277 gigawatts by 2060, with solar power anticipated to be the primary energy source. Nigeria and South Africa led Africa in solar power growth in 2025, a position attributed to Nigeria's vast solar resources, growing private investment, and supportive government policies.

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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

Natural gas will continue to play a crucial role as a transition fuel while renewables are scaled up. With approximately 202 trillion cubic feet of proven reserves, Nigeria has sufficient gas resources for reliable baseload capacity. Tegbe urged manufacturers, processors, logistics operators, and technology firms to embrace renewable energy solutions and leverage opportunities presented by the Electricity Act 2023, signaling the decline of diesel generators as primary power sources.

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I say to the manufacturers, the processors, the logistics operators, and the technology firms in this room: the era of the diesel generator as your primary power source is drawing to a close. Embedded generation, industrial mini-grids, renewa