The Federal Government says Nigeria can save $121bn in fuel costs by transitioning to a power generation mix comprising 90 per cent renewable energy, The Punch reports.

The Minister of Power, Joseph Tegbe, described the projected savings as a major economic benefit for businesses, households and the government, while speaking at the Lagos Chamber of Commerce and Industry’s 2026 Renewable Energy Outlook Conference in Lagos on Wednesday, said the country’s Energy Transition Plan positioned renewable energy as an economic strategy rather than merely a climate commitment.

According to him, “The ETP projects that transitioning to 90 per cent renewable energy in our power mix will yield fuel savings of $121bn. These are savings that will accrue to Nigerian businesses, Nigerian consumers, and the Nigerian state. The additional capital expenditure required, approximately $10bn annually above business-as-usual, is not a burden to be mourned; it is an investment to be mobilised.”

Tegbe said the Energy Transition Plan targets a total installed electricity generation capacity of 277 gigawatts by 2060, with solar energy expected to dominate the country’s future power landscape.

“The ETP outlines the need for a total installed power capacity of 277 gigawatts by 2060. Solar energy will be the dominant force in this new landscape.

Nigeria and South Africa led Africa in solar power growth in 2025, and that leadership position is not accidental,” he said.

The minister noted that natural gas would remain a critical transition fuel as the country scales up renewable energy deployment.

“With proven reserves of approximately 202 trillion cubic feet, Nigeria possesses the gas endowment to maintain reliable baseload capacity whilst renewables are scaled.

“Gas is not our destination. But it is an indispensable companion on the journey,” he said.

Tegbe urged manufacturers, processors, logistics operators and technology firms to embrace renewable energy solutions and take advantage of opportunities created by the Electricity Act 2023.

 “I say to the manufacturers, the processors, the logistics operators, and the technology firms in this room: the era of the diesel generator as your primary power source is drawing to a close. Embedded generation, industrial mini-grids, renewable energy procurement agreements, and direct connections to renewable independent power producers are now legally enabled under the Electricity Act 2023,” he said.