Federal Government Commits N450 Billion to Renewable Energy and Poverty Reduction
The Nigerian government has committed N450 billion towards advancing renewable energy and reducing poverty in the country. This announcement was made by the Minister of Humanitarian Affairs and Poverty Reduction, Professor Nentawe Yilwatda, during the national budget roundtable and panel discussion at Covenant University, Ota, Ogun State. The event, organized by the Centre for Economic Policy and Development Research (CEPDeR) of Covenant University in collaboration with the University of Warwick, centered around the theme “National Budgeting as a Critical Tool for Reducing Poverty and Inequalities in the Era of Energy Transitions.”
Addressing Multidimensional Poverty
Professor Yilwatda referenced the 2022 National Multidimensional Poverty Index (MPI), which indicates that 63% of Nigerians—approximately 133 million people—are living in multidimensional poverty. Within this group, 42% are in extreme poverty, and 40% lack access to electricity. He highlighted that about 85 million Nigerians remain without electricity, a statistic that correlates closely with those living in extreme poverty.
“Energy poverty limits business growth, affects education and healthcare, and deepens inequality,” Yilwatda said, emphasizing that the government’s focus on renewable energy is intended to close this gap and lift more Nigerians out of poverty.
Allocation of Funds
The N450 billion committed by the government will be used for various initiatives to reduce energy poverty and foster sustainable development:
- N200 billion will be allocated to renewable energy infrastructure development.
- N150 billion will be directed toward supporting the development of solar, wind, hydro, and coal-based energy systems, with the goal of providing electricity access to 5 million households by the end of 2025.
- N100 billion will be set aside for the training of 250,000 Nigerians in renewable energy technologies, aimed at creating sustainable jobs in the green economy.
Long-Term Goals and Job Creation
The government’s commitment to renewable energy is not only about improving access to electricity but also about creating jobs, advancing education, and promoting economic inclusion. Yilwatda stressed that the transition to renewable energy would create new “smart and green jobs,” particularly for underserved communities. The training of 250,000 Nigerians will focus on skills in solar, wind, hydro, and thermal energy, ensuring that these workers contribute to the green economy.
Poverty Reduction Programs
In addition to the renewable energy plan, the federal government continues to implement poverty reduction initiatives, including the conditional cash transfer scheme, which targets 15 million households. So far, over 5 million Nigerians have benefited from this scheme, with recipients verified through the national social register and digital ID verification systems.
The government also plans to create 2 million additional jobs by skilling and upskilling unemployed and underemployed Nigerians and linking them to private sector opportunities.
Challenges to Progress
Despite these ambitious goals, Yilwatda flagged several critical challenges hindering progress, such as funding gaps, infrastructure deficits, skills shortages, and inconsistent policies. He called on the private sector to partner actively with the government to achieve these renewable energy goals and ensure the sustainability of the green transition.
This investment in renewable energy and poverty reduction is a significant step towards addressing Nigeria’s energy challenges and improving the quality of life for millions of Nigerians, while also contributing to the global movement towards a green economy.
