Nigeria has launched a $2 billion National Climate Change Fund to accelerate its energy transition and attract long-term climate capital. The move signals growing investor confidence in African green finance.
President Bola Tinubu disclosed the plan at Abu Dhabi Sustainability Week, alongside the Climate Investment Platform, targeting an additional $500 million.
The initiative aligns with broader efforts to expand renewable energy, cut emissions, and unlock private sector climate investment.
Bold Climate Fund, Big Strategic Bet
Nigeria has unveiled a $2 billion National Climate Change Fund aimed at supporting low-carbon and climate-resilient infrastructure, the government announced at Abu Dhabi Sustainability Week this week.
The fund marks one of the most ambitious climate finance initiatives by any African government, reflecting Nigeria's desire to transition from fossil fuel dependency and tap into global sustainable investment flows.
President Bola Tinubu also introduced a Climate Investment Platform intended to mobilise an additional $500 million from private and institutional investors.
Ambitious Targets, Strategic Tools
Nigeria's energy transition plan comes with bold targets and tools:
| Initiative | Objective | Key Feature |
|---|---|---|
| National Climate Change Fund | Back climate and clean energy projects | $2 billion capitalisation |
| Climate Investment Platform | Attract private climate capital | $500 million mobilisation |
| Green Bonds | Raise domestic capital | Oversubscriptions highlight demand |
The country reported that a N50 billion ($38 million) sovereign green bond issued in 2025 drew N91 billion in orders, while Lagos State's green bond was oversubscribed by nearly 98%, signalling strong investor appetite.
Nigeria's transition strategy aligns with its Net-Zero by 2060 target and the pursuit of $25 – $30 billion annually in climate finance from both public and private sources.
Why This Matters For Africa's Climate Agenda
Nigeria's climate finance push is significant on multiple fronts:
- Economic transformation: unlocking capital for renewables, grid upgrades, green industry and resilient infrastructure.
- Investor confidence: oversubscribed green instruments signal demand – a rare positive in emerging market climate finance.
- Policy innovation: the Climate Investment Platform and a new Climate and Green Industrialisation Investment Playbook aim to guide investors through the regulatory and policy terrain.
For Africa, which requires hundreds of billions annually to decarbonise and adapt, Nigeria's strategy could become a template for scaling blended finance and mobilising private capital.
Implementation Measures Now Underway
Nigeria is taking immediate steps to operationalise its climate finance architecture:
- Capitalising the National Climate Change Fund – Government and investors are being invited to commit and deploy capital.
- Strengthening policy frameworks via the new investment playbook to unlock private sector climate projects.
- Scaling green finance instruments, including repeat green bond issuances and blended finance products.
- Significant economic partnerships – Nigeria and the UAE signed a Comprehensive Economic Partnership Agreement, boosting cooperation across renewable energy, agriculture, logistics, and climate infrastructure.
These efforts build on earlier initiatives such as the Nigeria Sovereign Investment Authority's $500 million Distributed Renewable Energy Fund, which aims to catalyse local clean energy financing.
PATH FORWARD – Mobilise Blended Capital For Transition
To translate Nigeria's climate ambitions into tangible progress, the focus now shifts to blended finance, scalable instruments, and investor confidence-building.
Strong policy frameworks and robust capital mobilisation mechanisms can attract long-term climate capital and accelerate infrastructure deployment.
Climate finance must become more than a pool of funds; it must catalyse a resilient, inclusive, low-carbon future for Nigeria and beyond.
Culled From: https://www.reuters.com/sustainability/cop/nigeria-bets-2-billion-fund-boost-energy-transition-2026-01-13/
