Nigeria Eyes Green Finance to Drive Energy Transition with $2 Billion Climate Fund
The Nigerian government is turning to green finance to propel its energy transition, as announced by President Bola Tinubu at the Abu Dhabi Sustainability Week summit. A $2 billion climate fund is being established to support projects that reduce emissions and enhance resilience. The National Climate Change Fund aims to mobilize $500 million for climate-resilient infrastructure, with the overall goal of achieving net-zero emissions by 2060.
In addition to the climate fund, Nigeria has signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates to boost trade and investment in sectors such as renewable energy, aviation, and agriculture. The country is also working to address environmental challenges, including reducing gas flaring and methane emissions, as part of its Energy Transition Plan.
Nigeria’s green bond program has garnered significant interest from investors, with a $38 million sovereign green bond issued in 2025 attracting subscriptions worth $91 million. The government is seeking to unlock $25-30 billion in climate finance annually and has introduced a Climate and Green Industrialisation Investment Playbook to guide private investors and stakeholders.
The playbook builds on previous initiatives, including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, launched in March 2025. President Tinubu emphasized that these reforms demonstrate Nigeria’s readiness for business, citing a 21% growth in non-oil exports and investment commitments exceeding $50 billion across key sectors.
The government is prioritizing technology partnerships to modernize its grid, deploy artificial intelligence for efficiency, and pilot projects in electric mobility and green industrialization. With its focus on green finance and climate-resilient infrastructure, Nigeria aims to drive its energy transition and achieve a more sustainable future. The country’s efforts to transition to renewable energy and reduce emissions are crucial steps towards meeting its climate goals and promoting economic growth.
