The Federal Government has unveiled a strategy to attract substantial investments for infrastructure improvements, aiming to capitalize on the global hydrogen economy, which is projected to reach $200 billion by 2030.
Ambassador Nicholas Ella, the Permanent Secretary at the Ministry of Petroleum Resources, stated that incorporating hydrogen into the country’s energy framework could play a pivotal role in achieving the objective of a 20 percent reduction in carbon emissions by 2030. Vice President Kashim Shettima emphasized the importance of developing human capital in hydrogen technologies for the success of a hydrogen economy in Nigeria.
This strategic push for adopting hydrogen as an alternative energy source was underscored at the first National Conference on Hydrogen, organized by the Ministry of Petroleum Resources and the Foundation for Sustainable Social Responsibility in Emerging Africa, with the theme “Building a Hydrogen Economy for Nigeria,” held in Abuja on Tuesday.
In his keynote address, the Vice President, represented by Sadiq Wanka, the Special Adviser to the President on Power Infrastructure in the Office of the VP, emphasized that developing pilot programs in various applications is essential for cultivating domestic expertise to leverage the expansive global hydrogen economy.Shettima highlighted that regional cooperation with other nations within the sub-region and across the continent in embracing hydrogen would enhance its domestic viability.He also reflected on the 2015 Paris Agreement, which was adopted by 196 parties at COP21 and has significantly shaped climate discussions over the past decade.
The Vice President stated that partnerships with development organizations and countries that are further along in their hydrogen initiatives are crucial for facilitating knowledge transfer. He noted, “The investment needed to establish the infrastructure for hydrogen transport and storage is substantial and can only be supported by the private sector.
“By designing our extensive natural gas pipeline systems with future hydrogen transport in consideration, we can significantly lower these costs and attract capital,” Shettima added.He further noted that the nation’s energy transition plan outlines an ambitious objective of reaching a net-zero economy by 2060, alongside a commitment to achieve 9GW of renewable electricity supply by 2030, with natural gas playing a pivotal role as a transition fuel.
In a virtual address, the Permanent Secretary emphasized the need for substantial investments in upgrading infrastructure, constructing electrolysis facilities for green hydrogen production, and developing supportive policy frameworks to ensure the country secures its share in the growing market.
“The National Conference on Hydrogen serves as a critical platform for in-depth discussions surrounding the technology, policy, financing, and infrastructure essential for establishing a strong hydrogen economy.”
Germany, Japan, and South Korea have collectively committed over $70 billion to enhance hydrogen supply chains and technology. For Nigeria to enter this emerging market, significant investments are needed to upgrade infrastructure, build electrolysers for green hydrogen, and create supportive policies. The development of infrastructure, including pipelines, hydrogen refueling stations, and export facilities, poses a major challenge that requires collaboration between government and industry stakeholders.
Nigeria faces challenges in its energy sector, but these challenges also present opportunities for innovation, job creation, and economic growth. The country is expected to create over 300,000 jobs related to a hydrogen-based economy by 2035, as stated by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. He noted that Nigeria’s energy demand is projected to double by 2050 and emphasized the country’s goal to become a key player in the global hydrogen market. The minister highlighted that leveraging Nigeria’s resources for green hydrogen production could help reduce emissions and support the decarbonization of transport, power generation, and heavy industry.
Ekperikpe Ekpo highlighted Nigeria’s commitment to achieving net-zero emissions under the Paris Agreement, emphasizing the role of hydrogen in this effort. He explained that both green hydrogen, sourced from renewable energy, and blue hydrogen, derived from natural gas with carbon capture, present opportunities to meet environmental goals. Nigeria’s natural gas reserves of 206 trillion cubic feet and substantial solar resources, with about 2,000 hours of sunshine annually, make the country well-positioned for hydrogen production. Aliyu Mijinyawa, Chairman of the Foundation for Sustainable Social Responsibility in Emerging Africa, noted that the conference focused on exploring hydrogen energy potential, aiming to establish Nigeria as a leader in the global hydrogen market to foster economic growth, energy security, and climate action.