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Challenges & Opportunities for Nigerian-German Cooperation in the Global Energy Transition
Jennifer Morgan in UNILAG, © UNILAG 202
Visit of Jennifer Morgan - German State Secretary & Special Envoy for International Climate Action.
In the wake of the continued impact of the global climate crisis and global energy transition, Mrs. Jennifer Morgan, the Special Envoy for International Climate Action at the German Federal Foreign Office, paid a three-day visit in May 2024 to Nigeria (Abuja and Lagos). The goal of her visit was to gain deeper insight into the energy transition scene in the country, as well as advocate for collective efforts to promote cleaner and more sustainable energy.
Giving a public lecture at the University of Lagos, Mrs. Jennifer Morgan highlighted the fact that, all over the world, we are experiencing multiple crises at once - debt, development, energy, climate and food security. At the same time, we are also in the middle of a global economic transformation. This new kind of economy aims at inclusive growth, energy security and universal access to clean & affordable energy. It is increasingly based on renewable energies such as solar, wind and green hydrogen.
“These are the sectors, where the jobs of now are growing and the jobs of the future can be found.”, she stated.
Challenges
As a result of the changes in the global energy system, there will soon be a decrease in the demand for oil and gas. While the expansion of renewables is going hand-in-hand with the just and orderly transition away from fossil fuels, economies like Nigeria’s, that are dependent on fossil fuels, still continue to face the adverse effects caused by the global climate crisis. Firstly, these effects pose various challenges to the country, such as extreme heat waves, flooding and poor air quality (health risks) which endanger not only lives but also cause food insecurity.
Secondly, further delay in intentional actions to slowly reduce Nigeria’s investment in new coal, oil or natural gas projects, poses a great risk that such investments will become stranded assets in the long run. Nevertheless, many fossil fuel exporting countries, have realised these challenges and are already taking successful steps to shift their investments away from coal, oil and gas into renewable energy.
Opportunities
Describing Africa as a “huge basket of untapped energy potential”, State Secretary Morgan, pointed out a host of benefits that exist for Nigeria in the global energy transition. With rapid renewable energy expansion, Nigeria could not only increase energy access and affordability but also prevent worse climate impacts, thus creating better, healthier and safer lives for all.
Also, she pointed out the vast opportunities for Nigeria in solar energy. She highlighted the fact that 60% of the best spots for solar panels are in Africa, yet only 1% of the world's installed solar capacity is on the African continent. Nigeria is also rich in critical raw materials, like Lithium, which are in high demand in the renewables-based economy. Nigeria can harness this potential for massive expansion of renewable energy and reposition itself in the changing global energy market. According to Mrs. Morgan, the decisions Nigeria makes in the coming few years will be vital in determining its path.
Other important opportunities which the global energy transition could offer Nigeria, are the creation of new jobs and increased access to electricity. The opportunity to build new industries for the “markets of the future” will translate to decent well-paid jobs for a growing population.
Nigerian-German Partnership
Germany has had an energy partnership with Nigeria since 2008. During her visit, Mrs. Jennifer Morgan aimed to further discuss with the Nigerian Government on ways to advance this energy partnership as an instrument for effective dialogue on energy cooperation and also on climate change action. She also met with civil society groups and other stakeholders in the energy and climate sector.
The outcomes of this partnership are varied and have the potential to be further intensified. For example, the agreement between Siemens Energy and the Nigerian government aims at accelerating the implementation of the Presidential Power Initiative (PPI) and improve the grid for electricity supply in Nigeria. This has already improved nationwide power supply by more than 10%, which is vital for economic development. Also, Germany is working with Nigeria and other countries in the region to share its experience with vocational training and to raise the quality of local training. This includes professions such as solar engineering.
Bearing in mind that energy transition must be just, Mrs. Morgan believes that in the long run, Nigeria could become a shaper and beneficiary of the emerging global green hydrogen market. That is why as part of the German Nigerian Energy Partnership, Germany has opened the Nigerian-German Hydrogen Office in Abuja.
“The aim is to connect decision-makers and experts from Nigeria, Germany and beyond to explore how green hydrogen can help move forward green industrialisation and to strengthen, diversify and decarbonise the Nigerian economy”, she said.
In conclusion, in order to achieve transformative change and sustainable growth, coordinated action is necessary at both national and intentional levels. It is important that such actions are swift. According to Jennifer Morgan,
“We have no time to lose. The climate crisis increases risks and costs, causes damage to the economy and destroys livelihoods. The longer we wait to change things, the worse it will get. The sooner we act, the better.”