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The Nigerian government says it is turning to green finance as a key driver of its energy transition, with President Bola Tinubu announcing plans to establish a $2 billion climate fund.
Tinubu disclosed this on Tuesday while speaking at the Abu Dhabi Sustainability Week, where he said Nigeria’s Climate Investment Platform would mobilise an initial $500 million to support climate-resilient infrastructure.
According to the president, the proposed National Climate Change Fund will capitalise at $2 billion to finance projects aimed at reducing emissions and strengthening climate resilience across the country.
He said Nigeria’s climate agenda includes cutting gas flaring and methane emissions as part of its Energy Transition Plan, which aims to achieve net-zero emissions by 2060 while expanding access to electricity.
The president noted that Nigeria’s green bond programme has continued to attract strong investor interest. A 50 billion naira sovereign green bond issued in 2025 drew subscriptions worth 91 billion naira, while Lagos State’s green bond was oversubscribed by almost 98%.
Tinubu said the government is working to unlock between $25 billion and $30 billion annually in climate finance, adding that a new Climate and Green Industrialisation Investment Playbook would guide private investors through Nigeria’s manufacturing and regulatory environment.
He said the initiative builds on earlier efforts, including a $500 million Distributed Renewable Energy Fund launched in March 2025 by the Nigeria Sovereign Investment Authority to stimulate local financing.
“These reforms show Nigeria is ready for business,” Tinubu said, adding that non-oil exports have risen by 21% and investment commitments now exceed $50 billion across major sectors.
He also said the government is prioritising technology partnerships to modernise the national grid, deploy artificial intelligence to improve efficiency, and roll out pilot projects in electric mobility and green industrial development.
Tinubu also announced that Nigeria and the United Arab Emirates had signed a Comprehensive Economic Partnership Agreement (CEPA) to expand trade and investment cooperation across sectors such as renewable energy, aviation, logistics, agriculture, digital trade, and climate-smart infrastructure.
