Federal Govt Secures €21m German Funding For Clean Energy Transition

The federal government has secured a financial boost from Germany to advance its energy transition agenda, with a combined funding commitment of €21 million to strengthen renewable energy development, energy efficiency, and 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) will provide an additional €9 million to the Nigeria Energy Support Programme (NESP) in 2024, as well as an additional €12 million for the newly launched Energy Transition Challenge Fund (ETCF).

The special adviser, strategic communication and media relations to the Minister of Power, Bolaji Tunji, stated that the Minister of Power, Adebayo Adelabu, who represented Nigeria at the event, described the funding commitment as a major step towards building a sustainable and secure energy system that can accelerate the nation’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 said. “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), 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 round of funding is expected further to scale up renewable energy deployment in underserved areas and stimulate private investment in off-grid and mini-grid solutions.

Meanwhile, the Energy Transition Challenge Fund (ETCF) is designed to support innovative projects that contribute to Nigeria’s long-term decarbonisation and green growth objectives. The Fund will serve as a platform for co-financing clean energy ventures and strengthening local capacity for climate-resilient energy development.