The Federal Government of Nigeria has secured a financial boost from Germany to advance its energy transition agenda, with a total funding commitment of €21 million directed towards strengthening renewable energy development, improving energy efficiency, and increasing private sector participation.
The announcement was made during the Working Group on Power, Energy and Climate meeting held on November 3, 2025, in Germany, where both countries signed a Joint Declaration of Intent on Bilateral Energy Transition Dialogue and Cooperation.
Under the new arrangement, Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) is providing an additional €9 million to the Nigeria Energy Support Programme (NESP) in 2024, along with another €12 million for the newly launched Energy Transition Challenge Fund (ETCF).
Bolaji Tunji, special adviser on strategic communication and media relations to the Minister of Power, Adebayo Adelabu, said in a press release that the funding commitment marks a major step toward building a sustainable and secure energy system capable of accelerating Nigeria’s socio-economic transformation.
“The financial mechanisms, including the ‘Green Line of Credit’ for our SMEs and the mobilisation of private investment through GET.invest, are critical enablers,” Adelabu stated. “When combined with the technical expertise now formalised in our Joint Declaration, we are building a comprehensive ecosystem for energy success.”
The Nigeria Energy Support Programme (NESP), which has been jointly implemented by Nigeria and Germany over the years, focuses on expanding access to clean energy, promoting energy efficiency, and supporting policy reforms in the power sector. The new funding is expected to further scale up renewable energy deployment in underserved areas, enhance power generation capacity, and stimulate private investment in off-grid and mini-grid solutions.
The Energy Transition Challenge Fund (ETCF) is designed to support innovative projects that align with Nigeria’s long-term decarbonisation and green growth objectives. The Fund will act as a co-financing platform for clean energy ventures and help strengthen local capacity for climate-resilient energy development.
Both countries reaffirmed their commitment to maintaining the momentum of the partnership, ensuring that the energy transition brings tangible socio-economic benefits to Nigerians.
According to the statement, the meeting also reviewed ongoing progress under the Presidential Power Initiative and highlighted the importance of private sector participation in achieving Nigeria’s national energy goals. Germany further proposed that NGEP meetings be institutionalised and held annually at the level of undersecretaries from 2026 to enhance coordination and accountability in the energy partnership.
