Nigeria's Green Finance Gamble: A Bold $2 Billion Climate Fund Initiative

Nigeria is making significant strides in green finance with the launch of a $2 billion climate fund aimed at boosting its energy transition. The announcement, made by President Bola Tinubu at the Abu Dhabi Sustainability Week, underlines the country's commitment to reducing emissions and enhancing climate resilience.

Addressing challenges like gas flaring, Nigeria's efforts are supported by strong investor interest, with prior green bonds heavily oversubscribed. The nation is also fostering partnerships, signing a Comprehensive Economic Partnership Agreement with the UAE to bolster sectors like renewable energy and digital trade.

President Tinubu emphasized the shift towards blended finance to support ambitious climate initiatives, moving away from traditional sovereign guarantees which may disadvantage emerging economies. Nigeria is keen on leveraging technology and innovation, aiming to unlock $25–$30 billion annually in climate finance to achieve its net-zero emissions goal by 2060.