In a shift from oil dependence to climate capital, the Federal Government says green finance will anchor Nigeria’s energy transition. President Bola Tinubu has announced plans for a $2 billion climate fund to reduce emissions and unlock wider access to energy.
The President said at the Abu Dhabi Sustainability Week summit on Tuesday that Nigeria’s Climate Investment Platform would mobilise $500 million for climate-resilient infrastructure. He added that the National Climate Change Fund is targeting a $2 billion capitalisation to support projects that reduce emissions and strengthen climate resilience.
At the summit, Tinubu also announced that Nigeria and the United Arab Emirates had signed a Comprehensive Economic Partnership Agreement (CEPA).
The agreement is expected to boost trade and investment across multiple sectors, including renewable energy, aviation, logistics, agriculture, digital trade, and climate-smart infrastructure, strengthening Nigeria’s access to Gulf capital and global markets.
Net-Zero By 2060
Nigeria’s climate and environmental challenges remain significant, particularly in reducing gas flaring and methane emissions. These efforts form part of the country’s Energy Transition Plan, which targets net-zero emissions by 2060 while delivering universal energy access.
Green finance, the government says, is the bridge between climate ambition and economic inclusion in Africa’s largest economy. Tinubu said Nigeria’s green bond programme continues to attract strong investor interest.
A ₦50 billion ($38 million) sovereign green bond issued in 2025 drew ₦91 billion in subscriptions, while Lagos State’s green bond was oversubscribed by nearly 98 per cent.
According to the President, the government is now working to unlock $25–$30 billion annually in climate finance. A new Climate and Green Industrialisation Investment Playbook will help private investors navigate manufacturing policy and Nigeria’s regulatory landscape.
Impact On Nigerians In The Diaspora
For Nigerians abroad, the shift toward green finance opens new channels for engagement beyond remittances.
Diaspora professionals and investors can participate in green bonds, climate funds, renewable energy ventures, and infrastructure projects tied to dollar-linked or naira-backed returns.
As Nigeria attracts more climate capital, the expectation is for improved power supply, cleaner cities, and more stable operating conditions—factors that directly affect families, property investments, and businesses back home.
A stronger climate-finance framework could also reduce pressure on foreign exchange, helping stabilise the naira and protecting the value of diaspora remittances sent home.
The new initiatives build on earlier efforts, including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, launched in March 2025 to catalyse local financing for clean energy projects.
“These reforms show Nigeria is ready for business,” Tinubu said, adding that non-oil exports have grown by 21 per cent, while investment commitments now exceed $50 billion across key sectors.
The President said Nigeria is prioritising technology partnerships to modernise the national grid and deploy artificial intelligence for efficiency. He added that pilot projects are underway in electric mobility and green industrialisation, signalling long-term demand for skills in engineering, data science, climate finance, and project management—areas where diaspora expertise is especially relevant.
Nigeria’s $200bn Energy Transition Opportunity
In September 2025, Vice President Kashim Shettima presented Nigeria’s $200 billion energy transition opportunity to investors at the United Nations General Assembly in New York.
At a roundtable hosted by the Business Council for International Understanding (BCIU), he emphasised the need for partnerships to unlock investment at scale.
“With 210 trillion cubic feet of gas reserves and one of the highest solar irradiation levels in Africa, Nigeria offers a 200-billion-dollar energy transition opportunity,” said Shettima.
Source: Channels TV
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