TOWARDS A SUSTAINABLE HYDROGEN ECONOMY IN NIGERIA

18-07-2025, By Marc Belemsobgo

As the global race towards clean energy intensifies, West Africa is emerging as a region of untapped potential. At the forefront of this transformation is WASCAL, which, through its flagship project “A critical analysis of the Potentials, infrastructure and other enabling framework conditions for Green Hydrogen to fertiliser production in Nigeria’ (NIGERIA4H2), is laying essential groundwork for a green hydrogen economy in Nigeria.

Supported by the German Federal Ministry of Research, Technology, and Space (BMFTR), the NIGERIA4H2 project was launched to evaluate the viability of green hydrogen production in Nigeria and its integration into sectors with high decarbonisation potential, especially fertiliser production. 

Despite its wealth of renewable energy sources such as solar, wind, and hydropower, Nigeria continues to struggle with one of the highest energy poverty rates globally. Only 45% of the population is connected to the national grid. The country’s food and energy security remain under serious threat, as low agricultural productivity driven in part by farmers’ limited access to fertiliser and declining soil quality continues to undermine efforts to build a resilient and sustainable food system. WASCAL’s intervention through NIGERIA4H2 aims to link renewable energy development with green ammonia production, offering a forward-looking solution that supports both energy transition and agricultural transformation.

Unlike blue hydrogen, which is derived from natural gas and contributes to greenhouse gas emissions, green hydrogen is produced from water using renewable electricity. When used to synthesise ammonia, it creates green ammonia, a climate-friendly alternative for fertiliser production. This shift is crucial, as Nigeria’s reliance on natural gas has not provided a stable fertiliser supply due to recurring gas shortages.

Technical studies conducted by WASCAL in collaboration with Nigerian partners comprising the Federal University of Technology, Akure; Afe Babalola University; the Federal University of Technology, Minna and German partners indicate that, with the right infrastructure and policy support, Nigeria could develop a competitive green ammonia sector for domestic use and export. These findings highlight the country’s potential to become a regional leader in sustainable agro-industrial development. The studies have also examined water availability, production costs, and regulatory frameworks. These form a basis for future demonstration projects and green investment strategies. 

While the outlook is promising, challenges remain. Scaling up green hydrogen infrastructure requires significant capital investment, consistent policy support, and sustained local capacity building. Moreover, water resource management and grid stability must be addressed to ensure long-term viability.

WASCAL’s leadership in NIGERIA4H2 reflects its growing influence as a regional catalyst for climate-smart energy solutions. By integrating renewable energy with agriculture through green hydrogen and ammonia, the project offers Nigeria and the broader West African region a strategic pathway toward decarbonization, energy security, and economic resilience.

NIGERIA4H2 could serve as a blueprint for other countries in the region pursuing sustainable development goals. Now is the time for governments, private sector actors, and development partners to rally behind such initiatives scaling innovation, strengthening collaboration, and accelerating the just energy transition across West Africa.