Briefing Paper

How a Production Subsidy can Boost Nigeria’s Renewable Energy Sector, Growth and Employment

Despite Nigeria’s status as a major global energy producer, access to electricity is severely limited and
much of the country’s population is energy poor. A lack of reliable electricity forces homes and
businesses to rely on non-ecofriendly private generators to create their own supply. Nigeria is often referred to as a diesel-powered economy, which has hindered its growth and development. The country’s energy mix is dominated by hydro and natural gas sources, and fossil fuel exports are the primary source of
government revenue and foreign exchange. Mitigating the consequences of climate change caused by CO2
emissions is a priority for Nigeria, along with reducing energy poverty by developing renewable energy
sources and meeting international requirements, including the UN’s Sustainable Development Goals and
the Paris Climate Agreement.