The updated National Renewable Energy and Energy Efficiency Policy (NREEEP) introduced tax breaks for solar equipment, making clean energy more affordable.

The first half of 2025 has been a mixed bag for Nigeria’s climate efforts. While greenhouse gas emissions continue to rise overall, there are clear signs of progress in key sectors. Carbon dioxide emissions from power and industry increased by 3%, primarily due to the reliance on diesel generators and industrial expansion. Meanwhile, methane emissions from oil and gas flaring continue to be a persistent issue, particularly in the Niger Delta. However, the story isn’t all bleak—renewable energy adoption and cleaner transport are starting to make a measurable difference.  

One bright spot is the transport sector, where emissions have begun to decline for the first time. The transition to compressed natural gas (CNG) and electric vehicles (EVs) is gaining momentum in major cities such as Lagos and Abuja, driven by government-backed incentives. Road transport emissions decreased slightly, indicating that policy interventions can be effective. Similarly, the use of diesel generators in urban areas dropped by 7% compared to 2024, thanks to the rapid expansion of solar mini-grids. These changes suggest that Nigeria’s energy transition, though slow, is moving in the right direction.  

Policy reforms have been a major driver of this progress. The updated National Renewable Energy and Energy Efficiency Policy (NREEEP) introduced tax breaks for solar equipment, making clean energy more affordable. Meanwhile, the Clean Energy Transition Framework is being piloted in three states, with a focus on mini-grids, energy-efficient buildings, and green startups. The government also launched grants to expand CNG refueling infrastructure, accelerating the shift away from petrol and diesel. These measures show Nigeria’s commitment to a cleaner future, but enforcement and funding remain critical hurdles.  

Despite these advances, fossil fuels still dominate Nigeria’s energy landscape. The national grid remains unreliable, forcing many businesses to fall back on generators. Heavy industries and long-haul transport still rely on diesel, and gas flaring continues due to weak enforcement. Renewable energy has grown to 16% of the energy mix—up from 13% in 2023—but scaling further will require massive investment in infrastructure and storage solutions. Without faster action, emissions from oil, gas, and industry could offset gains in other sectors.  

Nigeria’s mid-year performance earns a B – Moving Forward, reflecting real but uneven progress. The country is laying the groundwork for a cleaner economy, with policies that encourage renewables, energy efficiency, and sustainable transport. However, persistent challenges—such as flaring, grid instability, and slow adoption in key industries—mean the pace must accelerate. To turn this “B” into an “A,” Nigeria needs stricter enforcement, deeper private-sector investment, and inclusive solutions that reach rural and underserved communities.  

The next six months will be decisive. If Nigeria sustains its policy momentum, expands access to renewable energy, and addresses flaring and grid inefficiencies, 2025 could mark a true turning point. The progress so far proves change is possible, but the clock is ticking. With stronger action, Nigeria can transform its energy future and set an example for the region. The question is no longer whether the country can reduce emissions, but how fast it will happen.

This Post was submitted by Climate Scorecard Nigeria Country Manager, Michael Johnson