Nigeria targets $50b in hydrogen exports

Nigeria is intensifying efforts to become a leading exporter of green hydrogen, with a plan to generate up to $50 billion in hydrogen revenue and produce four million tonnes of green ammonia annually by 2060.

This plan, reinforced yesterday in Abuja at the Nigeria4H2 Project Result workshop—an initiative that assesses the country’s potential to transition from fossil fuel dependency to cleaner energy sources—shows that the Economic Community of West African States is seeking to shift towards green hydrogen.

The project, spearheaded by the Energy Commission of Nigeria (ECN) and supported by partners including the West African Science Service Centre on Climate Change and Adapted Land Use (WASCAL) and the German government, has become a flagship initiative under President Bola Tinubu’s Renewed Hope Agenda.

Speaking on behalf of Vice President Kashim Shettima, presidential adviser Dr. Tope Fasua noted that the project remains a cornerstone of Nigeria’s green transition strategy.

The government considers green hydrogen, produced using renewable energy from solar and wind, as a vital tool for economic diversification, job creation, and achieving international climate targets, he noted.

Shettima highlighted Nigeria’s natural resources, including abundant sunlight, wind potential, and a youthful population, as key strengths in developing a scalable green hydrogen economy.

The strategy extends beyond energy transformation to include green ammonia production as a solution to Nigeria’s fertiliser deficit, which has limited agricultural productivity and contributed to food insecurity.

The green ammonia generated from hydrogen will support local agriculture and open up export opportunities.

Projections from the Nigeria4H2 study indicate that, under three viable production scenarios, Nigeria could produce over 4 million tonnes annually by 2060, drastically reducing reliance on imported fertilisers and reinforcing domestic food systems.

The Executive Director of WASCAL, Dr. Emmanuel Ramde, indicated that strong regulatory frameworks and skills development remain the primary strategies for the region to unlock green hydrogen. He noted that the initiative has established a solid foundation for green hydrogen development, incorporating input from key Nigerian universities and building on findings from the earlier H2Atlas project.

He emphasised the necessity of creating a national hydrogen strategy and regulatory framework to attract investment and accelerate deployment.

To achieve these objectives, stakeholders at the event called for coordinated public-private partnerships, investments in renewable infrastructure, and the development of local value chains.

The government has been advised to expedite licensing for hydrogen projects, provide tax incentives, and support the domestic manufacturing of key components such as electrolysers and fuel cells.

On the policy front, the Energy Commission of Nigeria announced that a comprehensive National Hydrogen Policy and Strategy has been drafted. The document details objectives such as energy security, economic growth through hydrogen exports, emissions reduction, and a strong innovation ecosystem. The strategy is based on seven core pillars, covering industrial applications, transportation, power generation, export markets, and both green and blue hydrogen technologies.

Speaking at the event, Director General of ECN, Mustapha Abdullahi, who was represented by Director of Renewable Energy, ECN, Ibrahim Sulu, stated that implementation would be overseen by a proposed National Hydrogen Council, chaired by the Vice President, supported by a think-tank secretariat and subcommittees focusing on domestic adoption and export development. Pilot projects, including a 50MW solar-hydrogen plant in Kano and hybrid solar-hydrogen rural mini-grids, are scheduled for rollout between 2026 and 2028.

According to him, looking towards 2035, Nigeria expects to generate $10 billion annually in hydrogen revenue, create up to 500,000 jobs, and reduce industrial carbon emissions by 20 per cent.

Plans also include hydrogen-powered transport systems such as buses for the Lagos Bus Rapid Transit network, and green hydrogen integration into major industrial facilities like the Dangote Refinery and Indorama.

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