Nigeria’s Renewable Shift Targets $686.8bn Fuel Savings By 2060

The federal government’s shift towards renewable energy is progressively encouraging households investments in solar energy as alternative sources of electricity.

 At the largest scale, Nigeria’s shift to domestic renewables is projected to generate USD 686.8 billion in fuel cost savings by 2060 according to its Energy Transition and Investment Plans (ETIP).

These projections depend on infrastructure delivery as Nigeria’s ETIP targets 277 GW of total installed capacity and over 104,000 mini-grids by 2030. 

Nigeria is currently moving towards unveiling the Renewable Asset Management Company (RAMCO), which is described as strategic answer to long-term energy financing.

The Rural Electrification Agency (REA) is set to launch RAMCO on Wednesday August 26, 2026 in Abuja heralding a new era of advancing distributed renewable energy access in Nigeria.

The REA MD, Abubakar Aliyu, revealed that RAMCO is intended to provide a specialized platform for the professional management, optimization, and long-term sustainability of renewable energy assets.

Meanwhile, the Sustainable Energy for all (SEforALL), has advised countries to sustain investment in the ETIP strategy as that is another major source of energy security.

The SEforALL observed that the Strait of Hormuz crisis is a reminder of how exposed the global energy system remains to geopolitical disruption. 

It is also notes that the COVID-19, the Russia-Ukraine war, and conflicts in the Middle East have each revealed the same structural vulnerability and dependence on imported fossil fuels carries real and recurring costs.

According the organization, 74 per cent of the world’s population live in countries that are net importers of fossil fuels, with developing countries particularly exposed.  While 655 million people remain without electricity and 2 billion still rely on polluting fuels for cooking, every price spike widens import bills and drains scarce foreign exchange, competing directly with the investment needed to expand electricity access and clean cooking. 

Countries in this position have limited room to absorb shocks, it said.

The SEforALL therefore said that solution to this could be promoting more in-country energy generation.

According to the organization a country generating its own solar or wind power is not exposed to supply disruptions originating thousands of kilometres away.

The development of ETIPs, which are country-owned frameworks that help governments move from fossil fuel dependence toward domestically produced clean energy, could be a key starting point.

By identifying priority sectors and technologies, shaping investment pipelines, and translating transition commitments into concrete plans, ETIPs can help countries  reduce import dependence, direct investment where it is most needed, and build more resilient energy infrastructure.

The savings, as evidenced by the ETIPs that SEforALL has helped develop, are substantial. 

Aside from Nigeria, it said that in Barbados, where fossil fuels account for 91 per cent of electricity generation, the ETIP projects BBD 15.6 billion (7.8 billion USD) in fuel cost savings by 2035. 

Also, Ghana’s ETIP targets a 90 per cent reduction in domestic oil and gas consumption, saving approximately USD 180 billion in fuel costs by 2060. 

In Sierra Leone’s ETIP is projected to deliver USD 4.7 billion in import savings, with green hydrogen replacing fossil fuels from 2040. 

“At the largest scale, Nigeria’s shift to domestic renewables is projected to generate USD 686.8 billion in fuel cost savings by 2060 according to its ETIP.

These projections depend on infrastructure delivery. Nigeria’s ETIP targets 277 GW of total installed capacity and over 104,000 mini-grids by 2030.” it said.

Sierra Leone’s ETIP allocates USD 5.5 billion for grid upgrades and storage critically in a system where 46 per cent of electricity is currently lost in distribution.

The region warrants particular attention. 

The Philippines sourced 95 per cent of its crude imports from Gulf countries, Vietnam 88 per cent, Malaysia 69 per cent, Thailand 59 per cent, Singapore 52 per cent, Indonesia 20 per cent. 

At the same time, the region is projected to account for more than 25 per cent of global energy demand growth by 2035.

Electricity demand has more than doubled in two decades, growing at around 3.3 per cent annually, with fossil fuels absorbing the vast majority of that growth. 

Without structural change, growing demand will increase rather than reduce the region’s exposure to supply disruptions, it said.

The SEforALL is currently developing an Energy Transition and Investment Roadmap for the ASEAN region, working with member states on a shared approach to energy security.

Covering power, transport, industry, buildings and agriculture, the roadmap identifies where domestically and regionally generated clean energy can displace imported fossil fuels and quantifies the investments needed to enable that transition. 

As ASEAN Member States rely on many of the same fuel suppliers, they share common energy security risks. Strengthening cross-border electricity interconnections allows surplus renewable generation in one country to meet demand in another, enhancing energy systems reliability and resilience in ways that national planning alone cannot achieve. This is where regional planning matters, and what the ETIR is designed to support. 

The region is also well positioned to strengthen its role in clean energy value chains. ASEAN holds nearly half of the world’s nickel reserves and around one-fifth of global rare earths reserves critical inputs for batteries, wind turbines, electric vehicles, and other clean energy technologies. 

By developing domestic and regional value chains, ASEAN can capture greater economic value, create new industries and jobs, and reduce dependence on imported clean energy equipment,  rather than simply replacing fuel imports with technology imports.

“Emergency measures address immediate shortfalls. Transition plans address the underlying structure. The technology and financing mechanisms to build more resilient energy systems are available. The constraint is usually planning capacity and investment coordination, which is precisely what ETIPs are designed to support,” SEforALL stated.