Nigeria Unveils $2 Billion Climate Fund to Fast-Track Energy Transition
Nigeria has launched an ambitious $2 billion National Climate Change Fund aimed at accelerating the country’s energy transition while supporting projects that reduce emissions, expand renewable energy, and strengthen climate resilience. The initiative aligns with Nigeria’s Energy Transition Plan, which targets net-zero emissions by 2060 alongside universal energy access.
President Bola Ahmed Tinubu announced the fund on Wednesday at the Abu Dhabi Sustainability Week, emphasizing strong investor appetite for Nigeria’s green finance instruments and renewed momentum in climate-aligned investment. The fund will serve as a central vehicle for channeling international climate finance and supporting nationally determined contributions across multiple sectors.
“Nigeria views action not as an unwanted burden but as a development opportunity,” President Tinubu stated. “Nigeria’s Energy Transition Plan integrated energy access, climate mitigation, industrial growth and social development into a single, coherent framework, achieving net-zero emissions by 2060 while delivering universal energy access.”
Complementing the fund, Nigeria has launched a Climate Investment Platform aimed at mobilizing $500 million for climate-resilient infrastructure. Priority areas include flood control, water systems, transport resilience and urban adaptation, with the platform structured to attract long-term capital from pension funds, insurers and institutional investors.
The government also announced a Climate and Green Industrialization Investment Playbook designed to unlock $25 to $30 billion annually in climate finance. The playbook provides investors with clarity on project pipelines, regulatory frameworks, risk allocation and expected returns, while aligning climate investment with Nigeria’s industrial policy to support job creation, local manufacturing and value-chain development.
Nigeria’s climate finance push builds on existing programs, including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund launched in 2025 to catalyze investment in mini-grids, solar home systems and embedded generation. The World Bank-backed $750 million Distributed Access through Renewable Energy Scale-up program aims to deliver clean electricity to more than 17.5 million Nigerians using private-sector-led deployment and results-based financing.
Investor confidence has been reinforced by strong demand for Nigeria’s green bonds. An approximately $38 million sovereign green bond issued in 2025 attracted roughly $64 million in subscriptions, while Lagos State’s green bond was oversubscribed by nearly 98 percent, demonstrating strong investor appetite for climate-aligned Nigerian assets.
Source: energycapitalpower.com
