Improved Power Supply Underway As Nigeria Partners Germany, Signs €20 Million Renewable Energy Deal

• Renewable energy is still an emerging sector in Nigeria as the federal government continues to push for a transition to cleaner energy
• The government has signed a landmark deal with the German government to accelerate Nigeria's energy transition
• This deal will serve three major objectives, as the Federal Minister for Budget and Economic Planning has said

Legit.ng journalist, Ruth Okwumbu-Imafidon, has over a decade of experience in business reporting across digital and mainstream media.

In a bid to accelerate Nigeria’s transition to renewable energy, the federal government has signed a €20 million deal with the German government.

This deal will be co-facilitated by the KfW Development Bank and the Africa Enterprise Challenge Fund.

The Federal Ministry of Budget and Economic Planning released a statement announcing the deal on Thursday, after the signing was done on Wednesday, 18 June 2025.

FG partners with Germany to promote renewable energy

Commenting on the agreement, Abubakar Bagudu, Minister of Budget and Economic Planning, explained that it would achieve three objectives for Nigeria.

The deal would facilitate the expansion of vocational training in renewable energy across Nigeria. It would also promote the adoption of renewable energy and reduce the nation’s dependence on fossil fuels for energy.

Bagudu added that this move was critical to achieving Nigeria’s development goals, as it would also bring energy to underserved communities, creating economic opportunities for Nigeria’s young population.

The expansion of training facilities would also help Nigeria build a skilled workforce to power the renewable energy sector, the PUNCH reports.

According to the statement, the government signed an initial grant of €20 million and a Project Agreement with the German government to drive climate-friendly activities in Nigeria.

The signing ceremony was attended by Abubakar Bagudu, Minister of Budget and Economic Planning, representing Nigeria; Gerald Keuhnemund, a representative of the KfW Development Bank; and Dr. Karin Jansen, the First Secretary and Head of Development Cooperation at the German Embassy in Nigeria.

Dr. Jansen described the agreement as a significant milestone coming at a time that Germany marked the 50th anniversary of its Energy Transition Challenge Fund.

She stressed that the fund would only be used for the most impactful renewable energy projects in Nigeria, as Germany partners with Nigeria in the energy transition journey.

The Nigerian government has also put a timeline to ban the importation of solar panels, while boosting local production.

Lagos State to establish renewable energy university

Along the same lines, the Lagos State government has shared plans to establish a renewable energy university to build capacity in this emerging sector.

The state governor, Babajide Sanwo-Olu, has also pledged to build a $150 million lithium battery assembly plant at the Lekki Free Trade Zone.

Both initiatives are in response to the erratic electricity supply that has severely damaged businesses in the state.

Investors focus on renewable energy

Meanwhile, investors around the globe are showing increased interest in clean energy technologies.

Legit.ng reported that despite global uncertainties, the investment in clean energy technologies is set to strike a record in 2025.

This means that investors remain optimistic despite challenges such as the Trump-led US administration’s stance on renewable energy.

Source: Legit.ng