By Ayomide Otitoju
The Federal Government has said it is relying on green finance to drive Nigeria’s energy transition, as President Bola Tinubu on Tuesday unveiled plans for a $2 billion national climate fund.
Speaking at the Abu Dhabi Sustainability Week summit, Tinubu said Nigeria’s Climate Investment Platform is expected to mobilise $500 million to support climate-resilient infrastructure across the country. He added that the National Climate Change Fund is targeting a $2 billion capitalisation to finance projects aimed at reducing emissions and strengthening climate resilience.
The President also announced that Nigeria and the United Arab Emirates had signed a Comprehensive Economic Partnership Agreement (CEPA) to deepen trade and investment ties in key sectors, including renewable energy, aviation, logistics, agriculture, digital trade and climate-smart infrastructure.
Tinubu noted that Nigeria’s major environmental and climate policy priorities include cutting gas flaring and methane emissions as part of its Energy Transition Plan, which seeks to achieve net-zero emissions by 2060 while ensuring universal access to energy.
Highlighting growing investor confidence, the President said Nigeria’s green bond programme has continued to attract strong 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.
According to Tinubu, the government is also working to unlock between $25 billion and $30 billion annually in climate finance. He said a new Climate and Green Industrialisation Investment Playbook would guide private investors and stakeholders through Nigeria’s manufacturing policies and regulatory framework.
The President added that these efforts build on existing initiatives, including the $500 million Distributed Renewable Energy Fund launched by the Nigeria Sovereign Investment Authority in March 2025 to stimulate local financing for clean energy projects.
“These reforms show Nigeria is ready for business,” Tinubu said, noting that non-oil exports have grown by 21 per cent and investment commitments now exceed $50 billion across strategic sectors.
He further stated that Nigeria is prioritising technology partnerships to modernise its power grid and deploy artificial intelligence for greater efficiency, alongside pilot projects in electric mobility and green industrialisation.
