Renewable Energy: Nigeria, Netherlands partner to advance solar energy, rural electrification
As Nigeria targets a 30% renewable energy contribution to its energy mix by 2030, the country is partnering with the Netherlands to expand solar power and rural electrification.
Engagement between visiting Dutch firms and Nigerian stakeholders is expected to lead to new investments, knowledge transfer, and long-term partnerships that will drive the country’s clean energy transition forward.
Speaking during the trade mission, Rogier Van Tooren, Head of Mission at the Netherlands Ministry of Foreign Affairs, emphasized the Netherlands’ extensive experience in solar power installations despite its limited sunlight.
He highlighted Nigeria’s abundant solar resources as a key advantage, noting that Dutch firms are eager to contribute their expertise to optimize solar power generation and grid solutions.
“The Netherlands is very proud to be here today with a group of Dutch companies active in Nigeria’s solar power and energy market. You have something very special that we envy in the Netherlands: abundant sunshine. The potential is enormous, and we are eager to contribute our expertise in optimizing solar power generation and grid solutions,” Van Tooren said.
Bengt Van Loosdrecht, Ambassador-designate of the Kingdom of the Netherlands to Nigeria, reiterated the commitment to supporting Nigeria’s clean energy transition. He stressed the importance of removing obstacles for international private sector investments, ensuring that Dutch companies can actively contribute to Nigeria’s growing renewable energy market.
“It boils down to taking away all obstacles for the private sector, including international players, to contribute to renewable energy and the grid. This market is too big and too interesting to ignore,” Van Loosdrecht stated.
He added that the visit aims to foster partnerships between Dutch companies and Nigerian businesses to enhance access to electricity through innovative solar technologies.
The Federal Government has also reaffirmed its commitment to deepening private sector participation in the renewable energy space.
To support these efforts, Abba Abubakar Aliyu Managing Director of the Rural Electrification Agency (REA) said that the government has committed over $750 million to renewable energy projects, with an additional $200 million from the Japan International Cooperation Agency (JICA). According to him, the federal budget also includes over $100 billion dedicated to solar energy initiatives.
Similarly, Emmanuel Lonaza, Deputy Director of the Nigerian Investment Promotion Commission (NIPC), outlined key incentives, including a pioneer tax status offering up to five years of tax holidays for new investors and a one-stop investment center to ease business registration and operations.
He emphasized that the country has vast untapped opportunities, further reinforced by the Renewable Energy Master Plan, a strategic framework aimed at increasing the share of renewables in Nigeria’s energy mix.
Lonaza noted that the Renewable Energy Master Plan, last updated in 2012, set ambitious targets, including:
Generating 10% of Nigeria’s electricity from renewables, achieving a 30% renewable energy contribution to the national electricity mix, developing over 8,000 megawatts (MW) of renewable energy capacity by 2025.
However, he said that with 2025 already underway and many of these targets yet to be fully realized, Lonaza stressed that this gap represents a significant opportunity for investment.
To encourage foreign direct investment (FDI), the NIPC has introduced several policy incentives, including the Pioneer Status Tax Holiday. Under this scheme, eligible investors receive three years of tax exemption upon entry, A possible two-year extension based on reinvestment and business expansion, and A total of up to five years of tax relief to support business growth.
“This initiative is designed to allow investors to reinvest profits into their businesses rather than paying taxes in the initial years,” Lonaza explained.
Umar Mohammed, Head of Renewable Energy at the Nigerian Electricity Regulatory Commission (NERC), detailed Nigeria’s robust regulatory framework designed to attract investors. He emphasized ongoing reforms, including a renewable energy auction in collaboration with the World Bank and a net metering regulation that will enable consumers to sell excess power to the grid.
He said, The commission is also supporting sub-national electricity regulatory agencies, with 10 states already establishing their versions of NERC to facilitate investments at the state level.
For her part, Caroline Kemen Niagwan, Deputy Comptroller-General of Customs, assured investors of streamlined trade facilitation measures. She highlighted zero percent import duties on solar panels, simplified customs procedures, and programs such as the Authorized Economic Operator Program, which ensures faster clearance for compliant businesses.
“Another one is the Authorized Economic Operator Program, which we just launched. We launched on the 14th of February, and implementation started on the 17th of February. This is an initiative of the World Customs Organization of the safe framework of standards, and it’s to enhance security in the international supply chain as well as facilitate legitimate trade,” she explained.
