Nigeria is stepping up its use of green finance to advance its energy transition, with Bola Tinubu announcing plans for a $2 billion National Climate Change Fund alongside a separate Climate Investment Platform targeting $500 million for climate-resilient infrastructure.

Speaking at the Abu Dhabi Sustainability Week summit, Tinubu positioned climate finance as central to Nigeria’s economic and energy strategy, highlighting growing international investor appetite for the country’s green instruments.

Mobilising Capital for Climate and Infrastructure

The National Climate Change Fund is intended to reach a $2 billion capital base, supporting projects that reduce emissions while strengthening resilience across energy, transport and infrastructure systems. In parallel, Nigeria’s Climate Investment Platform will focus on mobilising $500 million for climate-resilient assets, complementing public funding with private capital.

These initiatives align with Nigeria’s broader Energy Transition Plan, which targets net-zero emissions by 2060 while expanding access to reliable energy across the country.

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UAE Partnership and Sectoral Focus

Tinubu also confirmed that Nigeria and the United Arab Emirates have signed a Comprehensive Economic Partnership Agreement. The agreement is designed to deepen trade and investment flows across renewable energy, aviation, logistics, agriculture, digital trade and climate-smart infrastructure, reinforcing Nigeria’s positioning within global energy transition supply chains.

Strong Signals from Green Bond Markets

Investor confidence in Nigeria’s green finance framework is already visible in bond markets. A 2025 sovereign green bond issuance of $38 million was oversubscribed, attracting $69 million in subscriptions, while Lagos State’s green bond issuance was nearly 98 percent oversubscribed.

According to Tinubu, the government is now working to unlock between $25 billion and $30 billion annually in climate finance. A forthcoming Climate and Green Industrialisation Investment Playbook is expected to provide investors with clearer visibility on Nigeria’s manufacturing policies, incentives and regulatory environment.

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Building on Earlier Climate Finance Initiatives

The new announcements build on earlier efforts, including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund launched in March 2025. Together, these measures aim to reduce reliance on fossil fuels, address challenges such as gas flaring and methane emissions, and scale clean energy access.

Tinubu noted that non-oil exports have increased by 21 percent and total investment commitments now exceed $50 billion. He also advocated greater use of blended finance structures instead of sovereign guarantees, arguing that such approaches are more equitable for emerging economies seeking to fund their climate transitions.

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