Nigeria strengthens energy $2 billion climate fund, investor playbook

Nigeria is accelerating its energy transition through an expanded push into green finance, with President Bola Tinubu unveiling plans for a $2 billion climate fund and underscoring strong investor demand for the country’s green bond issuances.

Addressing the Abu Dhabi Sustainability Week summit, Tinubu said Nigeria’s Climate Investment Platform is targeting $500 million to finance climate-resilient infrastructure. In parallel, the National Climate Change Fund is seeking to build a total capital base of $2 billion to support emissions-reduction initiatives and strengthen nationwide climate resilience, Caliber.Az reports, referencing foreign media.

Tinubu also announced that Nigeria and the United Arab Emirates have concluded a Comprehensive Economic Partnership Agreement. The pact is intended to bolster trade and investment across a range of sectors, including renewable energy, aviation, logistics, agriculture, digital commerce and climate-smart infrastructure.

Nigeria continues to confront major environmental and climate-policy challenges, especially the need to curb gas flaring and methane emissions. These efforts form part of the country’s broader Energy Transition Plan, which aims to achieve net-zero emissions by 2060 while ensuring universal energy access.

The president pointed to increasing confidence in Nigeria’s green bond programme. A sovereign green bond valued at $38 million (50 billion naira) issued in 2025 attracted subscriptions totalling $69 million (91 billion naira), while Lagos State’s green bond was nearly 98 per cent oversubscribed.

Tinubu said the government is also working to mobilise $25–$30 billion annually in climate finance. A new Climate and Green Industrialisation Investment Playbook is being introduced to help investors better navigate the country’s manufacturing policies and regulatory landscape.

These initiatives build on earlier measures, including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, launched in March 2025.

Tinubu added that non-oil exports have increased by 21 per cent and that investment commitments now exceed $50 billion. He further urged a shift toward blended finance rather than reliance on sovereign guarantees, arguing that blended structures offer a fairer framework for emerging markets.

By Tamilla Hasanova