Nigeria's push for cleaner energy is unfolding amid significant foreign investment, with Chinese companies playing a major role in the country's power sector. According to the International Energy Agency (IEA), China was the largest bilateral financier of energy infrastructure in Africa between 2013 and 2021. However, this investment has been heavily skewed towards fossil fuels, particularly gas-fired power plants.
Key projects include the 1,350 MW Geregu II gas power plant, built by China's Sinohydro and financed by the Export-Import Bank of China. While Nigeria has vast renewable potential, especially in solar, Chinese investment in this area remains limited. The Zungeru hydropower plant, a 700 MW project constructed by Sinohydro, is a notable exception, representing a major clean energy asset.
Analysts note that Chinese engagement aligns with Nigeria's own Energy Transition Plan, which aims for net-zero by 2060 but still relies on natural gas as a 'transition fuel'. The strategic priorities for Chinese firms appear to be securing energy projects that guarantee returns, often through government-backed contracts, rather than leading a shift to wind or solar at scale.
The broader context involves geopolitical competition, as Western nations also seek to finance Nigeria's energy transition. The success of Nigeria's goals will depend on diversifying its investment partners and technology sources to build a more balanced and sustainable energy mix.
