Cautious optimism as Nigeria validates hydrogen policy for $200b market

Cautious optimism as Nigeria validates hydrogen policy for 0b market


Nigeria has moved a step closer to joining the global hydrogen economy with the validation of its National Hydrogen Policy, but stakeholders have warned that translating the framework into bankable projects, attracting investment and building the necessary institutions will determine whether the country can capitalise on a global market valued at more than $200 billion.

The draft policy, validated in Abuja yesterday after an 18-month multi-agency consultation, seeks to position Nigeria as a producer of both blue and green hydrogen by leveraging its more than 210 trillion cubic feet of natural gas reserves and abundant renewable energy resources.

However, participants at the workshop stressed that implementation, rather than policy formulation, now represents the greatest challenge.

Head of the German-Nigerian Hydrogen Office, Kristina Fuerst, described the policy as a “living document” that would continue to evolve as the industry matures.

Drawing parallels with Germany’s experience, she noted that Germany had revised its National Hydrogen Strategy twice since its first publication in 2020 because of the rapidly changing nature of the sector.

While Germany has provided technical support for the policy’s development, Cluster Coordinator for Just Transition and Inclusion at GIZ Nigeria/ECOWAS, Jochen Rudolph, said implementation would depend on Nigeria’s ability to convert policy into commercially viable projects capable of attracting investors.

According to him, Germany’s support would continue through technical assistance, project preparation, capacity building and facilitating links between Nigerian developers and international financiers, but responsibility for implementation rests squarely with the Nigerian Government.

Rudolph noted that access to European hydrogen markets would require Nigerian producers to comply with stringent European Union standards covering renewable energy use, emissions, certification, traceability and safety.

He added that Nigeria must also build domestic industries around hydrogen to create jobs, strengthen manufacturing and avoid becoming merely an exporter of raw energy commodities.

On the government’s expectations, a representative of the Federal Ministry of Budget and Economic Planning and the Ministry of Petroleum Resources, Maryam Kayode, said the policy supports Nigeria’s economic diversification agenda by attracting investment, creating jobs and strengthening energy security.

Representing the Federal Ministry of Environment, Dr Asmau Jibril, Deputy Director in the Department of Climate Change, said the policy presents an opportunity to align economic development with Nigeria’s climate commitments.

The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, said investor confidence would depend largely on regulatory certainty and robust safety standards.

Represented by the Director of Health, Safety and Environment, Amos Oliver, he said the regulator would play a central role in developing frameworks for hydrogen transportation, storage and distribution while assessing how Nigeria’s existing gas pipeline network could be adapted for hydrogen.

Representing the Director General, Dr Adeola Ijeoma Eleri, Deputy Director of Renewable Energy, said Nigeria’s abundant natural gas reserves and renewable energy resources provide a unique opportunity to develop both blue and green hydrogen.

Deputy Director at NMDPRA, Dr Odafe Ejenavi, outlined the policy’s implementation roadmap, which proposes the establishment of a National Council for Hydrogen Development to coordinate licensing, regulation and investment across government.



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