Nigeria, Germany Seal €21 Million Deal to Boost Energy Transition

Nigeria has intensified its push toward a sustainable energy future with the signing of a fresh bilateral agreement with Germany worth €21 million to support renewable energy expansion and efficiency improvement.

The pact, formalised through a Joint Declaration of Intent on Bilateral Energy Transition Dialogue and Cooperation, underscores both nations’ commitment to advancing Nigeria’s low-carbon growth agenda through technical collaboration and targeted funding.

Under the arrangement, Germany will channel €9 million into the ongoing Nigeria Energy Support Programme (NESP) and another €12 million into the newly created Energy Transition Challenge Fund (ETCF).

The initiative also links with Germany’s Green Line of Credit for SMEs and the GET.invest platform to stimulate private investment in renewable projects across Nigeria.

The agreement is expected to benefit small businesses, energy developers, and consumers by widening access to finance, strengthening technical capacity, and improving electricity reliability and affordability.

It also aims to enhance government agencies’ ability to implement decarbonisation policies and build a modern regulatory framework for clean energy.

Minister of Power, Chief Adebayo Adelabu, described the partnership as a shift “from dialogue to actionable assistance,” saying it would “build a comprehensive ecosystem for sustainable energy growth.”

He added that the agreement complements existing efforts such as the Presidential Power Initiative (PPI), which seeks to modernise Nigeria’s power infrastructure and attract international investors.

Officials said the partnership reflects a strategic effort to combine global expertise with Nigeria’s domestic reforms, positioning the country for long-term energy security and job creation within the renewable sector.