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FG advances hydrogen policy for clean energy transition

Key points

  • FG says draft national hydrogen policy is at an advanced stage
  • Government seeks to utilise Nigeria’s low-carbon hydrogen resources
  • ECN says global hydrogen market could reach $50bn in coming decades
  • Nigeria plans to leverage gas reserves to develop a hydrogen economy
  • EU backs capacity building and energy transition initiatives

Main story

The Federal Government says it is creating the enabling environment for the effective utilisation of Nigeria’s low-carbon hydrogen resources as part of efforts to diversify the country’s energy mix and accelerate the transition to cleaner energy.

The Minister of Innovation, Science and Technology, Dr Kingsley Udey, stated this on Tuesday at the opening of a three-day summit on the Low-Carbon Hydrogen Economy in Abuja. The summit, organised by the Energy Commission of Nigeria (ECN) and the European Union (EU), is aimed at accelerating Nigeria’s clean energy transition. Represented by the ministry’s Permanent Secretary, Dr Mukhtar Muhammad, Udey said a draft national hydrogen policy had reached an advanced stage and would become operational soon.

He described hydrogen as a critical component of Nigeria’s clean energy transition strategy and said the government was committed to providing the regulatory framework needed to support the sector. The Director-General of the Energy Commission of Nigeria, Dr Mustapha Abdullahi, said Nigeria intended to leverage its vast natural gas reserves to develop a hydrogen economy and position itself as a regional hub for hydrogen production and exports.

He noted that the global hydrogen market was projected to reach $50 billion in the coming decades, creating opportunities for economic diversification. Representatives of the European Union, the National Bureau of Statistics and development organisations also stressed the need for investment, data-driven planning and institutional capacity building to support the development of a sustainable hydrogen ecosystem.

The issues

  • Development of Nigeria’s hydrogen economy
  • Energy diversification and clean energy transition
  • Regulatory framework for hydrogen development
  • Leveraging natural gas reserves for blue hydrogen production
  • Investment and capacity building in emerging energy sectors

What’s being said

“This government commits to ensuring that the regulatory clarity our agencies require to act is not the obstacle to achieving economic diversification.” — Dr Kingsley Udey, Minister of Innovation, Science and Technology, on government support for the hydrogen sector.

“Our partners have offered Nigeria a door; they have not offered to walk through it on our behalf.” — Udey, stressing the need for Nigerian institutions to drive implementation.

Bottom line

Nigeria is moving closer to adopting a national hydrogen policy as the government seeks to use its gas resources and emerging clean-energy technologies to drive economic diversification, attract investment and support the transition to a low-carbon economy.

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