1.🚁 Heli view: Nigeria’s green economy takes off – at last

The ambition is remarkable. The Nigerian government has announced plans to plant 2 billion trees.

• That’s more trees than the rest of the world together plants in a year.

Tonal change: Showing off a focus on climate, Nigeria sent the largest African delegation to COP28 in December. 

• Its 1,411 delegates were only trumped by missions from Brazil and China. 

New boss: The focus on climate is led by President Bola Tinubu, who was elected a year ago.

• He personally announced the launch of Nigeria’s first 100 electric buses. 

Stark contrast: Nigeria had long lagged other green economies in Africa, failing to invest in cleantech. 

• In the Environment Performance Index (EPI), Nigeria ranked 168 out of 180 countries.

• In sub-Saharan Africa, it was 41st out of 46 countries on environment and sustainability.

Energy gap: The failure to build a green economy is especially evident in access to electricity. 

• Kenya used a high rate of renewables (95%) to push grid connections to above 80% of the population.

• But Nigeria still only gets 28% of its power from renewables. And 90 million of its people (45%) lack grid power. 

• The country has the highest number of people worldwide without access to electricity, and the gap widened in the past decade. Population growth beat electrification.

Unexpected blindspot: Failing to see the potential of the green economy in the past decade was odd for Nigeria. Its dynamic business community leads the continent in many other sectors.  

• Nigeria had Africa’s largest economy last year (though only 17th by GDP per capita). 

• It was also the continent’s largest oil producer as well as the most prolific film-maker. 

• Its startup ecosystem has produced more unicorns than the rest of the continent together. 

Catching up: Belatedly now Nigerian business and politics are applying the same determination to succeed in the green economy. 

• President Tinubu is creating frameworks for a $2.5 billion carbon market.

• He also promised a “new dawn” in agriculture, which employs 70% of Nigerians, by making it sustainable.

• Bureaucratic changes include a National Council on Climate Change (predating Tinubu) and a Presidential Power Initiative.

• The country also established public alliances for Responsible Battery Recycling, Food and Beverages Recycling and E-waste Producer Responsibility.

Early fruits: Business has started to embrace the green economy now that foreign money is coming.  

• In collaboration with the Chinese government, over $5.8 billion has been invested in adding 3 Gigawatt (or 25% to current grid capacity). 

• A collaboration between the World Bank, AfDB and the Africa Growing Together Fund is supplying $550 million in new funding.

Head scratching: So why did Nigeria’s green economy take so long to take off? Three reasons: 

• Oil: The dominance of hydrocarbons  – and related private interests – hindered energy diversification.

• Politics: Instability and corruption undermined the transition, deterring investors and delaying regulations. 

• Size: Everything is slower in a country with 230 million people that produces 32 million tonnes of waste annually, making it the world’s seventh biggest polluter.

Changing winds: That the green economy seems to accelerate now is mainly due to politics.

• The government gained new momentum and ambitions after the 2023 election.

• Drastic fuel price increases have made the old energy system increasingly painful.

• Awareness of untapped green opportunities is at last taking hold – from critical minerals, ecotourism and electric mobility to 12 million new jobs in renewable energy. 

Future ambitions: Nigeria is already thinking ahead of its peers on the continent. 

• Ifeoma Malo, CEO of the Clean Tech Hub in Abuja, hopes that Nigeria, using its manpower, can lead in technical assistance in the green economy.

Realism needed: The country still has a long road ahead. But few peers have its track record of winning. 

2. Cheat sheet: Five Nigerian climate tech companies on the rise

(i) Clean Technology Hub: A pioneering hybrid for the research, demonstration and incubation of clean and green ideas and technologies in Africa and their validation for commercial-stage development. 

(ii) Arnergy Solar: Cleantech company offering modular, scalable energy solutions. Serving domestic and commercial customers with proprietary cloud-based energy management systems.

(iii) Kaltani: Plastic recycling and waste management company focused on the global plastic epidemic by utilising systematic and scalable steps to reduce pollution and solid waste.

(iv) Oando Clean Energy: Renewable energy subsidiary of Oando Energy Resources, an industry giant. Investing in climate-friendly and bankable energy solutions across Africa.

(v) RecyclePoints: Waste recycling venture focused on consumers with a point-based incentive model to collect sachets, bottles, cans, newspapers and corrugated cartons.

3. Number of the week

5. Q&A: Climate leaders with answers

Abiero Origa is a Manufacturing Manager at Dodai, a Japanese company in Ethiopia assembling and selling electric motorcycles

Q. Ethiopia plans to ban the import of fuel motorbikes – how is that going? A: The public is very supportive. Unlike in Kenya where public transport has been a big player in electric vehicle (EV) adoption, here in Ethiopia it is individuals that most embrace electric mobility. 

Q. Ethiopia achieved its 10-year EV import plan in just 2 years – how? A: Making EVs duty-free helped. Also, the country has plenty of cheap and renewable energy. 

Q. What stands between here and further mass adoption? A: Implementation of charging infrastructure. In Ethiopia, the government is setting up fast chargers in Addis Ababa. However, across the region the relevant stakeholders are yet to address this properly. 

Q. How can you bring down vehicle prices for consumers? A: Acquiring input materials locally will bring down production costs and hence prices.

Q. What about competition? A: That too can bring down prices! Standardisation of spare parts makes them more commonly used and hence cheaper, especially with smaller components such as stands and carriers.

6. Media monitoring

• Renewables: Cape Town plans $213 million for mini-grid upgrades.

• H2 application: Namibia prepares for converting locomotives to hydrogen.

• Mobility: Rwandan national park employs electric motorcycles for wildlife monitoring.

• Health: Climate change is expanding malaria into new regions.

• Agriculture: TradeMark Africa invests $2.1 million to boost Tanzania's horticulture industry.

• Transmission: France pledges support for Morocco's power link to Western Sahara.

• Cars: South Africa anticipates the arrival of three new Chinese SUV models.

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