Green hydrogen production costs between three and six times more than gas-derived hydrogen
The Federal Government on Tuesday validated Nigeria’s National Hydrogen Policy, marking a major step in the country’s transition to cleaner energy and laying the foundation for the development of a hydrogen economy aimed at attracting investments, creating jobs and diversifying the nation’s energy mix.
The policy, which will be forwarded to the National Economic Council and the Federal Executive Council for approval, sought to position Nigeria as a regional leader in both blue and green hydrogen production while supporting its net-zero emissions target by 2060.
The National Hydrogen Policy Validation Workshop, held on Tuesday, brought together representatives of the Federal Ministries of Budget and Economic Planning, Environment, Petroleum Resources, the Energy Commission of Nigeria (ECN), the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), GIZ Nigeria and ECOWAS, among others.
The workshop aimed to present the updated draft policy, incorporate stakeholders’ inputs from earlier review sessions held in Abuja, Kano and Lagos, resolve outstanding issues and agree on a final validated version that will guide Nigeria’s hydrogen sector.
Speaking at the event, Jochen Rudolf, Cluster Coordinator for Just Transition and Inclusion at GIZ Nigeria and ECOWAS, described the policy as a “living document” that would continue to evolve as the hydrogen industry develops.
Drawing lessons from Germany’s experience, Rudolf noted that Germany adopted its first National Hydrogen Strategy in 2020 and has already revised it twice to keep pace with rapid developments in the sector.
“Today, we are not closing a chapter; we are laying a solid foundation that gives Nigeria’s hydrogen sector a credible start while leaving room for future growth and adaptation,” he said.
He reaffirmed Germany’s commitment to supporting Nigeria’s energy transition through GIZ, describing the hydrogen policy as one of the organisation’s flagship initiatives.
According to him, Nigeria’s long-standing energy cooperation with Germany dates back to 1974 and has expanded significantly over the decades, including the establishment of the German-Nigerian Energy Partnership in 2008 and the German-Nigerian Hydrogen Office in 2021.
Rudolf said hydrogen would play an increasingly important role as countries accelerate efforts to decarbonise their economies.
He noted that the policy would enable Nigeria to leverage its natural resources, attract investment, improve industrial competitiveness and support sustainable economic development.
“As countries accelerate decarbonisation, hydrogen is emerging as a key energy carrier, particularly for sectors that are difficult to decarbonise. Nigeria has an opportunity to position itself strategically in this evolving global market,” he said.
Representing both the Federal Ministry of Budget and Economic Planning and the Ministry of Petroleum Resources, Kayode Mariam, a member of the National Hydrogen Committee, described the validation exercise as another major milestone in Nigeria’s journey towards building a competitive hydrogen economy.
She said the policy aligns with the Federal Government’s economic diversification agenda and would help stimulate investment, create employment opportunities for young Nigerians and strengthen energy security.
“We all know that one of the priorities of the current administration is to diversify the economy and create jobs for young people. Hydrogen offers enormous potential to achieve economic diversification, attract foreign investment and improve Nigeria’s competitiveness globally,” she said.
Mariam noted that work on the policy commenced about 18 months ago, involving several ministries, departments and agencies because of the cross-cutting nature of hydrogen development.
Also speaking on behalf of Balarabe Lawal, Minister of Environment, the Director of the Department of Climate Change, Asmau Jibril, said hydrogen offers Nigeria an opportunity to utilise its abundant natural resources while advancing environmentally sustainable development.
She stressed that the transition to a hydrogen economy must remain environmentally responsible, socially inclusive and economically beneficial.
According to her, implementation of the policy would support Nigeria’s commitments under the Paris Agreement, the Climate Change Act and broader national climate resilience objectives.
Jibril urged participants to contribute practical recommendations that would strengthen implementation and position Nigeria among leading players in the emerging global hydrogen market.
Representing Rabiu Umar, Chief Executive of the Nigeria Midstream and Downstream Petroleum Regulatory Authority, Amos Oliver, Director of Health and Safety, said the validation workshop marked the completion of the policy development cycle after extensive consultations across the country.
He described hydrogen as a strategic resource capable of supporting Nigeria’s energy diversification, sustainable industrialisation and just energy transition goals.
Oliver said the NMDPRA was already preparing regulatory frameworks to ensure the safe production, transportation, blending and storage of hydrogen in line with international best practices.
He also disclosed that the authority would assess how Nigeria’s existing gas pipeline infrastructure could be adapted for hydrogen transportation and industrial use.
According to him, investors require regulatory certainty, safety assurances and infrastructure readiness before committing resources to hydrogen projects.
He expressed optimism that after validation, the draft policy would proceed to the National Economic Council and subsequently the Federal Executive Council for approval.
The Energy Commission of Nigeria also expressed confidence that the policy would position Nigeria as both a regional and global leader in hydrogen production.
Representing Mustapha Abdullahi, Director-General of the commission, Adeola Ijeoma, Deputy Director of Renewable Energy, said Nigeria possesses unique comparative advantages for developing both blue and green hydrogen.
She noted that despite challenges such as widespread electricity access deficits and dependence on oil and gas revenues, Nigeria has more than 210 trillion cubic feet of proven natural gas reserves, abundant solar resources and significant renewable energy potential.
According to her, the draft policy adopts a phased strategy that initially leverages Nigeria’s natural gas resources and carbon capture technologies to produce blue hydrogen before progressively expanding green hydrogen production through renewable energy-powered electrolysis.
She said the approach aligns with Nigeria’s commitment to achieving net-zero carbon emissions by 2060.
Ijeoma also highlighted ongoing efforts by the Energy Commission to coordinate regulators, ministries and stakeholders, including implementation of a United Nations Industrial Development Organisation-supported green hydrogen project and strategic alignment workshops for relevant agencies.
She urged stakeholders to critically examine the draft policy to ensure it reflects Nigeria’s infrastructure realities, regulatory needs and investment priorities.
“The policy we validate today will influence investment decisions, regulatory frameworks and industrial development for many years to come,” she said.
