Green Energy Zones in Nigeria

Green Energy Zones in Nigeria: Unlocking renewable potential through legislative action

Domestic renewable energy manufacturing has become a priority in the Global South, particularly in Nigeria, given the country's abundant renewable resources, solar, wind, hydropower, and biomass. However, despite Nigeria’s vast potential, it has yet to fully capitalise on its renewable energy resources. Addressing this gap requires financial investment and infrastructure development and strong legislative backing. This is where the Green Energy Zones Dialogue as part of the Parliamentarians for Climate Finance Project undertaken by Climate Parliament (CP) and the United Nations Industrial Development Organization (UNIDO) plays a crucial role.

The Green Energy Zones Dialogue, held in Abuja at the United Nations House, brought together Nigerian parliamentarians, policymakers, government officials, investors, and development partners to strategize on accelerating green energy investments. It underscored the need for legislative and policy frameworks to support Nigeria’s transition to renewable energy, promote domestic manufacturing, and establish Green Energy Zones (GEZs) as hubs for clean industrialisation.

Renewable energy potential and the need for green energy zones

According to IRENA’s Renewable Energy Roadmap for Nigeria the country has one of the highest solar energy potentials in Africa. Peak solar regions include Sokoto, Katsina, Kano, and Borno, where solar irradiance ranges between 3.5–7.0 kWh/m²/day, with annual sunshine hours exceeding 2,600. However, despite this immense potential, solar power accounts for less than 1% of total electricity production, highlighting a significant gap and investment opportunity.

Beyond solar, wind energy in northern Nigeria has an estimated potential of up to 2,000 MW, while hydropower potential stands at over 14,750 MW, with currently installed capacity at approximately 2,062 MW. Investing in these renewable energy sources will not only support economic growth through job creation and local manufacturing but also align Nigeria with global energy transition goals and green growth objectives. Ultimately expanding renewable energy access can improve livelihoods, enhance public health, and provide reliable electricity to communities, driving broader social and economic development.

Industrial zones and their renewable energy potential

Nigeria’s four major industrial zones have the potential to become GEZs, integrating renewable energy into economic activities.

The Lagos-Abeokuta-Ibadan-Osogbo corridor is the country's financial and commercial hub, with a strong industrial base. It has high solar irradiance, making it ideal for large-scale photovoltaic installations, while agricultural waste from farming activities offers opportunities for bioenergy production.

In the Benin-Sapele-Warri region, industries such as timber, rubber, oil refining, and petrochemicals dominate. Biomass energy from timber and agricultural waste holds significant potential, alongside hydropower from the region’s rivers, which could support small-scale hydroelectric projects.

Further north, the Abuja-Kaduna-Kano-Jos zone encompasses key sectors such as textiles, agriculture, mining, and manufacturing. With abundant sunshine, large-scale solar farms are a viable energy solution, while strong wind speeds, particularly in Kano and Jos, make wind power an attractive option.

Meanwhile, the Onitsha-Aba-Enugu-Owerri-Port Harcourt industrial cluster thrives on trade, small-scale manufacturing, coal mining, and oil and gas production. Its high solar irradiance makes large-scale photovoltaic installations feasible, and the availability of industrial and agricultural waste presents opportunities for bioenergy conversion.

The Green Energy Zones Dialogue reinforced the need for policy-driven industrial decarbonisation in these zones, emphasizing renewable energy-powered industrial parks to attract investment and enhance Nigeria’s global competitiveness.

Legislative and policy framework: The role of parliamentarians for climate finance

One of the key takeaways from the Green Energy Zones Dialogue was the need for strong legislative action to support the development of renewable energy and industrial decarbonisation. The Parliamentarians for Climate Finance project is designed to empower Nigerian lawmakers with the knowledge and tools to champion policies that will unlock green investments.

At the dialogue, legislators discussed addressing regulatory barriers to renewable energy adoption, developing incentives for green manufacturing and local production of solar panels, wind turbines, and battery storage, establishing financing frameworks for industrial players to transition to clean energy, and ensuring that climate finance mechanisms are embedded in national policies to attract both public and private sector investments.

The event underscored the importance of parliamentary action in translating Nigeria’s energy transition ambitions into tangible legislative reforms that will facilitate GEZs as industrial and energy transition hubs.

Overcoming challenges to renewable energy investment

Despite Nigeria’s strong renewable energy potential, several barriers hinder large-scale investment. Complex regulatory approval processes slow project execution, weak national grid infrastructure limits the integration of renewable energy, and high initial capital requirements deter private-sector participation.

The Green Energy Zones Dialogue explored pathways to overcome these challenges through regulatory reforms that streamline approval processes, financial incentives such as tax breaks and subsidies, capacity-building programs to train stakeholders on climate finance and green industrialisation and strengthening public-private partnerships to mobilise investment and expertise.

A critical point raised, was the need for a monitoring and implementation framework to track policy commitments and hold stakeholders accountable. Parliamentarians recognised the need for legislative oversight on green energy investments and their integration into national development plans.

The way forward: Scaling green energy zones

The Green Energy Zones Dialogue concluded with a clear roadmap for scaling these zones across Nigeria. The approach includes ensuring that GEZs are integrated into Nigeria’s Nationally Determined Contributions and Energy Transition Plan. It also involves developing a bankable pipeline of green projects with investor-friendly policies, expanding off-grid solutions, mini-grids, and hybrid renewable systems to support industrial zones. Finally, it aims to integrate climate-smart solutions such as sustainable agriculture and forestry to enhance climate resilience.

By leveraging parliamentary advocacy, private-sector engagement, and international partnerships, GEZs will become a cornerstone of Nigeria’s renewable energy transition and industrial decarbonisation efforts.

Conclusion

Nigeria stands at a pivotal moment in its renewable energy and industrial transformation journey. The Green Energy Zones Dialogue, as part of the Parliamentarians for Climate Finance Project, has laid the foundation for policy-driven solutions that will unlock green investments, drive industrial competitiveness, and accelerate climate action.

With legislative support, investor confidence, and strong policy frameworks, Nigeria has the potential to become a leader in renewable energy manufacturing, green industrialisation, and sustainable economic growth. The momentum from this dialogue must now translate into actionable policies, investment-friendly regulations, and a clear roadmap for scaling GEZs nationwide.

The future of Nigeria’s energy transition is green powered by policy, investment, and innovation.