Nigeria secures $4.93bn for climate projects, faces funding gap
BY MOTOLANI OSENI
Nigeria received $4.93 billion for 828 climate-related projects between 2015 and 2021, according to a report by Connected Development (CODE), INKA Consult, and Oxfam International.
The report, titled The State of Climate Finance in Nigeria, was unveiled during the launch of Oxfam’s 2025 Annual Davos Report on Inequality and the Climate Finance Report. It revealed that while these funds addressed critical climate challenges, they fell significantly short of the $177.7 billion Nigeria needs annually to meet its climate action targets.
The report highlighted that the funding translates to an average of 118 projects and $704 million annually over the six years. However, a significant portion of the climate finance came as concessional loans, further burdening Nigeria’s already strained debt portfolio. With external debt at $41.59 billion out of a total debt of $108 billion, the country allocates over 37 per cent of its GDP to debt servicing and loan repayments.
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Sectors such as agriculture, forestry, energy, and water management were identified as primary beneficiaries of the climate funds. Despite this, the report emphasised a glaring deficit in domestic contributions to climate finance and the challenges posed by weak governance and policy integration at both national and sub-national levels.
The report recommended prioritising climate considerations in national and sub-national budgets, strengthening local government capacities, and developing robust mechanisms for tracking climate fund utilisation. Public-private partnerships were also highlighted as critical to mobilising domestic resources, with suggestions to expand green finance portfolios and invest in climate-resilient infrastructure and technologies.
Civil society organisations were called upon to play a vital role in monitoring climate finance flows, raising awareness about climate justice, and advocating for transparency and accountability. The report also stressed the importance of training policymakers and engaging stakeholders to integrate climate action into governance frameworks.
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Despite Nigeria’s heavy reliance on international support, the report urged a shift towards more sustainable domestic financing methods, such as green bonds and innovative infrastructure investment strategies. It concluded by calling for robust partnerships across government, civil society, and the private sector to ensure effective implementation of climate policies and achieve the country’s climate action goals sustainably.
Achieving Nigeria’s climate targets requires concerted efforts to bridge the funding gap, strengthen governance, and leverage resources for long-term environmental resilience.
