Nigeria has signed a landmark €20 million grant agreement with the German government to accelerate its energy transition and promote climate-friendly development.

The agreement, sealed in Abuja on Tuesday, is a joint initiative between the Federal Ministry of Budget and Economic Planning, Germany’s KfW Development Bank, and the Africa Enterprise Challenge Fund (AECF).

Senator Abubakar Atiku Bagudu, Minister of Budget and Economic Planning, signed on behalf of Nigeria, with Germany represented by Dr. Karin Jansen of the German Embassy and Mr. Gerald Kuhnemund from KfW.

“The project will promote the use of renewable energy, expand vocational training, and grow energy assets,” said Bagudu. “It’s designed to reduce our dependence on fossil fuels and bring energy to underserved communities.”

He added that the initiative would empower young people and women by creating new economic opportunities, while also improving access to clean power for households and businesses.

Dr. Jansen described the deal as a major milestone, coinciding with the 50th anniversary of Germany’s Energy Transition Challenge Fund.

“This €20 million commitment reflects our strong cooperation with Nigeria,” she said. “Only the most impactful renewable and energy efficiency projects will benefit from this fund.”

Bagudu also urged the Africa Enterprise Challenge Fund to harmonize its efforts with other ongoing renewable energy programs in Nigeria to avoid duplication.

The project’s three core areas include:

Promoting renewable energy solutions

Providing vocational training in clean energy

Expanding access to sustainable energy infrastructure

“This aligns perfectly with Nigeria’s development strategy,” Bagudu emphasized. “It’s about powering lives, building skills, and shaping a greener future.”

The grant is expected to support clean energy access in healthcare, education, and rural communities, while enhancing Nigeria’s capacity for climate resilience.