…says Nigeria risks missing out on billions in private capital
Stakeholders in the nations energy space have called for caution in the Nigeria energy transition process, noting Nigeria is an oil dependent nation.
Orji Ogbannaya Orji, executive secretary, Nigeria Extractive industry Transparency Initiative (NEITI) described the process of Nigeria’s critical journey to energy transition as a challenge which must be tackled with great caution and reforms.
The secretary stated this in his opening remarks at the second edition of the Rembinar Dialogue Series on Monday, April 28, 2025, tagged: Tax Bills & Implications for Energy Transition organised by NEITI and OrderPaper, Nigeria.
The Rembinar had as panelists, Terseer Ugbor, the deputy chairman, House of Representatives Committee on Environment, Nkiruku Maduekwe, DG, National Council on Climate Change (NCCC), Dieter Ahmad Bassi, director, Policy, Planning and Strategy (PPS), NEITI and Olumide Idowu founder/Executive Director, International Climate Change Development Initiative Africa (ICCDI), Africa
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Oke Epia, convener/ founder/CEO, OrderPaper noted that the energy transition was coming on the backdrop of Nigeria transiting to Net Zero by 2060, increasing renewable electricity to 23% by 2025 and 36% by 2030.
He added that the transition also aimed to give 30 million homes access to clean cooking and energizing agriculture ,textile production, cold storage using gas as a transition fuel as well as electrifying 5 million households with solar solutions.
In his remarks, Orji stressed that the country risks missing out on billions in private capital that could support global green manufacturing and energy solutions.
“The success of Nigeria’s Energy Transition Plan, particularly in scaling renewable energy, promoting green finance, and instituting carbon pricing , will significantly depend on the design and effective implementation of our tax policies,” he said
Orji emphasised the need for tax reforms to support renewable energy development, including tax exemptions for renewable energy components, tax credits for clean energy investments, and accelerated depreciation allowances for green technologies.
“At present, critical measures are missing from our fiscal proposals — including VAT exemptions on renewable energy components, tax credits for clean energy investments, and accelerated depreciation allowances for green technologies”.
The NEITI boss stressed that “Embedding the environmental costs of emissions within Nigeria’s fiscal framework will not only raise much-needed revenue but also incentivize cleaner industrial practices, aligning tax policy with our 2060 Net-Zero ambition”
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“To achieve this, Nigeria must:
Introduce targeted incentives for renewables, energy efficiency, and energy storage technologies;
Develop a comprehensive Green Fiscal Framework anchored in transparency and accountability;
Reallocate fossil fuel subsidies to support off-grid renewable energy solutions” he said
Dieter Ahmad Bassi in his comments listed key tax incentives for renewable energy to include VAT exemption on renewable energy equipment such as solar panels.
He further noted Tax rebates for energy investments, zero tax /royalties on specific gas and liquid projects, tax deductions on expenses related to clean energy initiative among others
Tersee Ugbor listed gaps in the tax reforms to include great emphasis on gas for commercialisation rather than as a bridge for renewables.
