The Federal Government has said it is relying on green finance to power Nigeria’s energy transition, as President Bola Tinubu on Tuesday unveiled plans for a $2 billion national climate fund.
Tinubu made the disclosure while speaking at the Abu Dhabi Sustainability Week summit, where he outlined Nigeria’s strategy for mobilising climate finance to support low-carbon growth and climate-resilient development.
According to the president, Nigeria’s Climate Investment Platform is expected to mobilise $500 million for climate-resilient infrastructure, while the National Climate Change Fund is targeting a $2 billion capitalisation to finance projects that reduce emissions and strengthen resilience.
Tinubu also announced that Nigeria and the United Arab Emirates have signed a Comprehensive Economic Partnership Agreement (CEPA) aimed at boosting trade and investment across key sectors, including renewable energy, aviation, logistics, agriculture, digital trade and climate-smart infrastructure.
Nigeria continues to face major environmental and climate policy challenges, particularly in reducing gas flaring and methane emissions, as it pursues its Energy Transition Plan, which targets net-zero emissions by 2060 while delivering universal access to energy.
The president noted that Nigeria’s green bond programme has attracted strong investor interest. He disclosed that a ₦50 billion ($38 million) sovereign green bond issued in 2025 recorded subscriptions of ₦91 billion, while Lagos State’s green bond was oversubscribed by nearly 98 per cent.
Tinubu said the Federal Government is also seeking to unlock between $25 billion and $30 billion annually in climate finance. To support this goal, a new Climate and Green Industrialisation Investment Playbook will be introduced to help private investors and stakeholders better understand manufacturing policies and the regulatory environment.
He explained that the initiative builds on earlier efforts, including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund launched in March 2025 to catalyse local financing for clean energy projects.
“These reforms show Nigeria is ready for business,” the president said, adding that non-oil exports have grown by 21 per cent, while investment commitments now exceed $50 billion across strategic sectors.
Tinubu further disclosed that Nigeria is prioritising technology partnerships to modernise its electricity grid and deploy artificial intelligence to improve efficiency, alongside pilot projects in electric mobility and green industrialisation.
