Lagos — Nigeria is betting on green finance to drive its energy transition with the president unveiling plans for a $2 billion climate fund on Tuesday, saying oversubscribed green bonds were proof of investor appetite.
Speaking at the Abu Dhabi Sustainability Week summit, President Bola Tinubu said Nigeria’s Climate Investment Platform aimed to mobilise $500 million for climate-resilient infrastructure, while the National Climate Change Fund is targeting a $2 billion capitalisation to back projects that cut emissions and boost resilience.
Tinubu also announced that Nigeria and the United Arab Emirates had signed a Comprehensive Economic Partnership Agreement (CEPA) that aims to boost trade and investment across sectors including renewable energy, aviation, logistics, agriculture, digital trade, and climate-smart infrastructure.
Nigeria faces major environmental and climate policy challenges including reducing gas flaring and methane emissions, as it works towards its Energy Transition Plan, which targets net-zero emissions by 2060 while delivering universal energy access.
Nigeria’s green bond programme has drawn strong investor interest. A 50 billion naira ($38 million) sovereign green bond issued in 2025 attracted 91 billion naira in subscriptions, while Lagos State’s green bond was oversubscribed by nearly 98%, the president said.
Tinubu said his government was also seeking to unlock an ambitious $25–$30 billion annually in climate finance. A new Climate and Green Industrialisation Investment Playbook will aid private investors and other stakeholders navigate manufacturing policy and the regulatory landscape.
This builds on past initiatives including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, launched in March 2025 to catalyse local financing.
“These reforms show Nigeria is ready for business,” the president said, adding that non-oil exports have grown by 21% and investment commitments now exceed $50 billion across key sectors.
Nigeria is prioritising technology partnerships to modernise its grid and deploy artificial intelligence for efficiency, alongside pilot projects in electric mobility and green industrialisation, he added.
The president called for a shift towards more blended finance — which combines public and philanthropic capital with private investment and can absorb initial losses if the project underperforms — instead of sovereign guarantees, which he said unfairly penalise emerging economies.
*Isaac Anyaogu; editing: Aidan Lewis – Reuters
