Nigeria’s energy mix is characterized by a heavy reliance on biofuels for residential use and natural gas for electricity generation. While the country is a leading global producer of oil and gas, traditional biomass still accounts for approximately 40–45% of the total primary energy supply as of 2024–2025.

Nigeria is positioning itself as a major player in the global green hydrogen market, aiming to generate $50 billion in export earnings and produce four million tonnes of green ammonia annually by 2060. The country’s strategy leverages its abundant solar and wind resources to decarbonize its energy-intensive industries and create a new revenue stream beyond fossil fuels.

Key Projects and Partnerships

• Nigeria-China Green Hydrogen Deal: In February 2025, the Nigerian government signed a €7.6 billion agreement with APPL Hydrogen Limited (AHL) and China’s LONGi Green Energy Technology.
  • Location: Liberty Free Trade Zone, Akwa Ibom State.
  • Output: Target production of 1.2 million tonnes of green methanol annually and 1.1 GW of clean electricity.

• Nigeria-Germany Partnership: Collaborative efforts through the German-Nigerian Hydrogen Office in Abuja focus on technical exchange, policy development, and securing future offtake for Germany’s energy needs.
• Pilot Initiatives (2026–2028): Planned projects include a 50MW solar-hydrogen plant

Strategic Objectives

• Economic Goals: Nigeria targets $10 billion in annual revenue from hydrogen by 2035 and the creation of 500,000 jobs.
• Agricultural Impact: A primary focus is green ammonia production to close the domestic fertilizer gap, reducing reliance on imports and improving food security.
• Industrial Integration: Plans involve integrating green hydrogen into major facilities like the Dangote Refinery and the Lagos Bus Rapid Transit (BRT) system for cleaner transportation.