Kingsley Ohens reporting
Nigeria has announced the creation of a $2 billion National Climate Change Fund as part of an ambitious push to mobilise green finance and accelerate its transition to a low-carbon economy, President Bola Ahmed Tinubu said on Tuesday while addressing global leaders and investors at the Abu Dhabi Sustainability Week summit.
The President said the new fund would anchor Nigeria’s climate financing framework, backing projects that cut greenhouse gas emissions, strengthen climate resilience, and expand sustainable infrastructure. As part of the broader strategy, the country’s Climate Investment Platform is expected to mobilise $500 million for climate-resilient infrastructure, while the government aims to unlock $25–$30 billion in climate finance annually from both public and private sources.
Nigeria’s renewed focus on green finance aligns with its Energy Transition Plan, which targets net-zero emissions by 2060 while delivering universal energy access to its fast-growing population. Central to the plan are efforts to curb gas flaring and methane emissions, long-standing challenges in Africa’s largest oil-producing economy, even as it balances climate goals with economic development.
At the summit, President Tinubu also announced the signing of a Comprehensive Economic Partnership Agreement (CEPA) between Nigeria and the United Arab Emirates, aimed at boosting trade and investment across key sectors including renewable energy, aviation, logistics, agriculture, digital trade, and climate-smart infrastructure. The agreement is expected to deepen capital flows and accelerate technology transfer, particularly in clean energy and industrial decarbonisation.
Investor appetite for Nigeria’s sustainable finance instruments has continued to strengthen. The President cited the success of the country’s green bond programme, noting that a ₦50 billion ($38 million) sovereign green bond issued in 2025 attracted ₦91 billion in subscriptions, while Lagos State’s green bond was oversubscribed by nearly 98%, underscoring growing confidence in Nigeria’s green investment framework.
To further crowd in private capital, the government is rolling out a Climate and Green Industrialisation Investment Playbook, designed to help investors navigate manufacturing policies, incentives, and regulatory requirements. This builds on earlier initiatives such as the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, launched in March 2025 to catalyse local financing for clean energy projects.
Beyond climate finance, President Tinubu highlighted broader economic momentum, noting that non-oil exports have risen by 21%, while investment commitments now exceed $50 billion across priority sectors. He added that Nigeria is prioritising technology partnerships to modernise its electricity grid, deploy artificial intelligence to improve efficiency, and scale pilot projects in electric mobility and green industrialisation.
“These reforms show Nigeria is ready for business,” the President said, positioning the country as a leading destination for climate-aligned investment and sustainable growth in Africa.
Discover more from Urbanscoopnews
Subscribe to get the latest posts sent to your email.
