The Federal Government of Nigeria has signed a €20m agreement with the German government to support the country’s energy transition and promote renewable energy development.

According to a press statement on Thursday by the Ministry of Budget and Economic Planning, the agreement, which was finalised the previous day, will be facilitated through the KfW Development Bank and the Africa Enterprise Challenge Fund.

The statement read, “The Federal Government of Nigeria has signed an initial grant of €20m and a Project Agreement with the German government on Energy transition to support climate-friendly development in Nigeria.

“This will be facilitated through the KfW Development Bank and the Africa Enterprise Challenge Fund.”

The signing ceremony took place in the office of the Minister of Budget and Economic Planning, Abubakar Bagudu, who represented Nigeria.

The First Secretary and Head of Development Cooperation at the German Embassy in Nigeria, Dr Karin Jansen, and the representative of the KfW Development Bank, Gerald Keuhnemund, also participated in the signing.

In his remarks, Bagudu outlined the project’s three primary objectives, which include promoting the adoption of renewable energy for improved energy efficiency, expanding vocational training in renewable energy and energy assets, and reducing Nigeria’s reliance on fossil fuels.

He emphasised that the initiative would contribute to Nigeria’s development goals by enhancing energy access to underserved communities and creating economic opportunities for youths and women.

The minister further explained that the project would also help build a skilled workforce capable of sustaining Nigeria’s energy economy. He called for greater synergy among various development programs, particularly the African Enterprise Development Fund, to avoid duplication and enhance support for sustainable energy initiatives in sectors like health and education.

Jansen expressed that the agreement marked a significant milestone as Germany celebrates the 50th anniversary of its Energy Transition Challenge Fund.

She noted that the fund would finance only the most impactful renewable energy projects, strengthening Germany’s financial partnership with Nigeria in its energy transition journey.