Key facts
- Nigeria's crude oil production hit a six-year high in June, averaging 1.56 million barrels per day.
- Nigeria has become an Association country with the International Energy Agency (IEA).
- The IEA aims to expand its engagement with major emerging and developing economies.
- Nigeria has committed to carbon neutrality by 2060.
- Nigeria plans to develop 277 GW of total installed renewable capacity and over 104,000 mini-grids by 2030.
Nigeria has been admitted as an Association country to the International Energy Agency (IEA), a significant step reflecting its growing influence in the global energy sector. The decision, made in June, was solidified in September with a meeting in Abuja between IEA Executive Director Fatih Birol and Nigerian Vice President Kashim Shettima and Minister of State for Petroleum Resources Ekperikpe Ekpo. Nigeria joins other sub-Saharan African nations like South Africa, Kenya, and Senegal as an IEA Association country.
Nigeria's association with the IEA is seen as a milestone, with Vice President Shettima highlighting the country's strategic importance and the benefits of accessing the IEA's expertise for its energy ambitions. Birol described Nigeria's inclusion as a landmark moment for Nigeria, Africa, and the IEA, emphasizing the partnership's role in supporting Nigeria's energy security, potential, and access to electricity and clean cooking solutions.
The IEA's move to include Nigeria aligns with its strategy to broaden engagement with major emerging and developing economies. Nigeria, Africa's most populous nation and a significant oil and gas producer, is also developing its renewable energy capacity. With Nigeria's association, the IEA now represents over 80% of global energy demand.
Despite facing challenges such as meeting growing demand and mobilizing investment, Nigeria's crude oil production reached a six-year high in June, averaging 1.56 million barrels per day. This increase was attributed to stable production and a crackdown on oil theft. The Nigerian National Petroleum Company (NNPC) works with international oil companies to produce and export resources that heavily contribute to the country's GDP.
In parallel with its fossil fuel activities, Nigeria is pursuing its green transition goals, aiming for carbon neutrality by 2060 under its Energy Transition Plan. The government has pledged $5 million for renewable energy development and projects significant fuel cost savings by 2060 through a shift to domestic renewables. Projections indicate a substantial increase in solar power installations and solar panel manufacturing output in the coming years. Additionally, plans are underway to list the Dangote Petroleum Refinery and Petrochemicals in what could be the continent's largest initial public offering.