The African Development Bank (AfDB) has said that Nigeria has the potential to lead lithium-ion battery manufacturing.
In its revised economic outlook for 2024, which was recently published on its platform, the bank noted that this potential is feasible with the discovery of over 3,000 lithium pegmatite bodies in Nigeria.
The AfDB also stated that the country can leverage its gas reserves to support the net-zero transition.
It said:
- “Exploiting Nigeria’s large gas reserves, estimated at 206.53 trillion cubic feet, and addressing gas flaring can support the net-zero transition.
- “Abundant solid and critical minerals present opportunities for green development. with the discovery of more than 3,000 lithium pegmatite bodies, Nigeria can lead lithium-ion battery manufacturing. The benefits include green job creation and climate change mitigation.”
However, the bank noted that in order to bring in green funding and investment, a blueprint is needed for these kinds of opportunities.
Nigeria needs $247 billion in climate finance through 2030
It further observed that the country needs about $247 billion in climate financing through 2030 if it is to achieve its Nationally Determined Contribution.
It added that the private sector can play a critical role in climate fund mobilisation.
The bank said:
- “Nigeria needs $247 billion in climate finance through 2030 to implement its Nationally Determined Contribution. Investment is needed in clean energy, including 8 gigawatts of solar energy.
- “The private sector has the potential to mobilize climate finance. Innovative financing opportunities include green bonds for energy efficiency and sukuk bonds for resilient transport infrastructure.
- “Restructuring the sovereign wealth fund also presents an opportunity for climate finance.”
