Nigeria and Ghana have made significant progress in developing policies and plans for a just energy transition, but the real challenge lies in implementation. Both countries have enacted laws and established agencies to drive the transition, including Nigeria's Climate Change Act and Electricity Act, and Ghana's Renewable Energy Act. However, the question remains whether these institutions, along with the required funding, can deliver reliable and affordable power to citizens. A just energy transition will be measured by the availability of power, fairness of bills, and protection of vulnerable communities.
Nigeria has taken steps to decentralize its electricity market, with 16 states transitioning to regulate their intrastate electricity markets by July 2026. The Electricity Act 2023 aimed to break the monopoly and bring power closer to the people. However, decentralization also presents new challenges, such as ensuring state regulators can enforce standards, attract investors, and protect consumers from multiple layers of charges. The law cannot guarantee that the woman in Owerri will see fewer hours of darkness, only delivery can.
Nigeria's climate goals are ambitious, with a commitment to reduce emissions by 20% below business-as-usual by 2030, rising to 47% with international support. The Energy Transition Plan outlines a roadmap for the transition, but it requires significant investment, estimated at $410bn between 2021 and 2060. The plan includes an initial $23bn pipeline, with $17bn expected from the private sector. However, the challenge lies in coordinating institutions to implement the plan and managing the required funding.
Ghana's story is similar, with a solid framework in place, including the Renewable Energy Act and an updated Nationally Determined Contribution (NDC) with 47 adaptation and mitigation programs. However, the implementation of these programs is hindered by institutional and financial challenges. Ghana's energy sector is plagued by debt, with the government paying $1.47bn in 2025 to clear energy sector debt and restore a World Bank guarantee. This raises questions about the fiscal space to build a new energy system.
Both Nigeria and Ghana face significant challenges in attracting private investment to support their energy transitions. The required funding is substantial, and governments are looking to private capital, concessional loans, and development finance to bridge the gap. However, private money is not charity, and citizens deserve to know the return on investment, including the number of megawatts generated, jobs created, and cost per unit.
Civil society plays a crucial role in ensuring that energy projects are affordable, equitable, and sustainable. Climate groups, energy access organizations, and community leaders must ask critical questions about project implementation, including whether communities were consulted and whether benefits will reach vulnerable populations. A solar farm is not automatically "just" because it is green; it must also be equitable and sustainable.
International partners, including the World Bank, AfDB, and Green Climate Fund, can provide critical support to Nigeria and Ghana in their energy transitions. However, their involvement also underscores the need for transparency and accountability in the use of funds. Journalists and civil society must scrutinize the terms of financing, including whether it is a grant, loan, or guarantee, and ensure that money committed is actually spent and effectively used.
Key points
- Nigeria and Ghana require $410bn in investment to achieve their energy transition goals.
- Both countries face significant challenges in implementing their energy policies and plans, including institutional and financial hurdles.
- A just energy transition in Nigeria and Ghana will be measured by the availability of reliable and affordable power, fairness of bills, and protection of vulnerable communities.
