Nigeria is turning to green finance as it seeks to accelerate its energy transition, with President Bola Tinubu unveiling plans for a $2 billion climate fund during remarks on Tuesday.
Speaking at the Abu Dhabi Sustainability Week summit, Tinubu said Nigeria’s Climate Investment Platform is designed to mobilise $500 million for climate-resilient infrastructure projects. Alongside this, the country’s National Climate Change Fund is aiming for a $2 billion capitalisation to support initiatives that reduce emissions and strengthen climate resilience.
The president pointed to strong demand for Nigeria’s green bonds as evidence of growing investor confidence. He said a 50 billion naira ($38 million) sovereign green bond issued in 2025 attracted subscriptions worth 91 billion naira, while a green bond issued by Lagos State was oversubscribed by nearly 98%.
Tinubu also announced that Nigeria and the United Arab Emirates had signed a Comprehensive Economic Partnership Agreement (CEPA). The agreement is expected to expand trade and investment across sectors such as renewable energy, aviation, logistics, agriculture, digital trade and climate-smart infrastructure.
Nigeria continues to face environmental and climate policy challenges, including reducing gas flaring and methane emissions. These efforts form part of the country’s Energy Transition Plan, which targets net-zero emissions by 2060 while working towards universal access to energy.
The president said his administration is also seeking to unlock between $25 billion and $30 billion a year in climate finance. A new Climate and Green Industrialisation Investment Playbook has been introduced to help private investors and other stakeholders navigate manufacturing policies and regulatory requirements.
The strategy builds on earlier initiatives, including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, which was launched in March 2025 to support 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% and that investment commitments now exceed $50 billion across key sectors.
Tinubu also highlighted Nigeria’s focus on technology partnerships to modernise its power grid, deploy artificial intelligence to improve efficiency, and roll out pilot projects in electric mobility and green industrialisation.
He concluded by calling for a shift towards blended finance, which combines public and philanthropic funding with private investment, rather than reliance on sovereign guarantees, which he said place an unfair burden on emerging economies.
