Nigeria and Germany have signed a landmark €20 million agreement aimed at accelerating Nigeria’s energy transition and reducing the country’s reliance on fossil fuels through the promotion of renewable energy and vocational training.
Announced by Nigeria’s Ministry of Budget and Economic Planning on Thursday, the deal was formalized in Abuja during a signing ceremony attended by Senator Abubakar Bagudu, Minister of Budget and Economic Planning, Dr. Karin Jansen, First Secretary and Head of Development Cooperation at the German Embassy, and Gerald Keuhnemund, a representative of the German development bank KfW.
The initiative, supported by KfW and the Africa Enterprise Challenge Fund (AECF), marks a strategic collaboration to foster climate-resilient growth and broaden access to sustainable energy in Nigeria.
The €20 million grant will fund projects aimed at improving energy access, especially in underserved regions, and will support capacity-building initiatives in the renewable energy sector.
“This partnership demonstrates our commitment to shifting towards a more sustainable and inclusive energy future,” said Minister Bagudu.
“Our three-pronged goal is clear: increase the adoption of renewable energy technologies, build a skilled workforce through vocational training, and reduce our dependence on fossil fuels.”
Bagudu emphasized that the energy transition plan will prioritize disadvantaged communities, aiming to create economic opportunities for youth and women while enhancing energy efficiency in critical sectors such as health and education.
He also urged better coordination among development partners to ensure synergies across Nigeria’s various energy programs.
Dr. Karin Jansen hailed the agreement as a milestone achievement, noting that it coincides with the 50th anniversary of the German Energy Transition Challenge Fund.
“This financing will be directed exclusively toward high-impact renewable energy projects,” she said.
“It reaffirms Germany’s enduring commitment to Nigeria’s green development ambitions.”
The funding is expected to catalyze further investments in clean energy and vocational training, reinforcing Nigeria’s pursuit of sustainable economic growth while strengthening bilateral ties between Africa’s largest economy and Europe’s industrial powerhouse.
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