The Federal Government says it is placing green finance at the centre of Nigeria’s energy transition strategy, with President Bola Tinubu unveiling plans for a $2 billion national climate fund to support low-carbon and climate-resilient projects.
Speaking on Tuesday at the Abu Dhabi Sustainability Week summit, the president said Nigeria’s Climate Investment Platform is expected to mobilise an initial $500 million for climate-resilient infrastructure, while the proposed National Climate Change Fund is targeting a total capitalisation of $2 billion. The fund will back projects aimed at reducing emissions and strengthening the country’s resilience to climate risks.
Tinubu also announced that Nigeria and the United Arab Emirates have signed a Comprehensive Economic Partnership Agreement (CEPA) to deepen trade and investment ties. The agreement covers key sectors including renewable energy, aviation, logistics, agriculture, digital trade and climate-smart infrastructure.
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Nigeria continues to face significant environmental and climate policy challenges, particularly in reducing gas flaring and methane emissions, as it works toward its Energy Transition Plan. The plan targets net-zero emissions by 2060 while simultaneously delivering universal access to energy.
The president highlighted growing investor appetite for Nigeria’s green finance instruments, noting that a ₦50 billion ($38 million) sovereign green bond issued in 2025 attracted subscriptions of ₦91 billion. Lagos State’s green bond, he added, was oversubscribed by nearly 98 percent, underscoring strong demand for climate-linked investments.
Tinubu said the government is seeking to unlock between $25 billion and $30 billion annually in climate finance. To support this goal, a new Climate and Green Industrialisation Investment Playbook is being developed to help private investors navigate Nigeria’s manufacturing policies and regulatory framework.
The initiative builds on earlier efforts such as the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, launched in March 2025 to catalyse domestic financing for clean energy projects.
“These reforms show Nigeria is ready for business,” Tinubu said, adding that non-oil exports have grown by 21 percent and total investment commitments now exceed $50 billion across priority sectors.
He also said Nigeria is prioritising technology partnerships to modernise its electricity grid, deploy artificial intelligence to improve efficiency, and roll out pilot projects in electric mobility and green industrialisation as part of its broader transition strategy.
