Nigeria’s Green Finance Drive Sparks Opportunity, Debt Debate
By NJORIGE LYNUS
Climate Transition, Economic Impact and Expert Views
NIGERIA’S plan to raise $2 billion for climate financing has reignited debate over how best to fund the country’s energy transition without undermining fiscal stability.
President Bola Tinubu announced the initiative at the Abu Dhabi Sustainability Week summit, saying the National Climate Change Fund would be capitalised to support emission reduction, renewable energy and climate-resilient projects. He also unveiled a Climate Investment Platform aimed at mobilising $500 million for infrastructure aligned with sustainability goals.
The President said Nigeria’s green bond programme had demonstrated strong global investor confidence, pointing to recent oversubscriptions at both federal and state levels. He also disclosed that Nigeria and the UAE had signed a Comprehensive Economic Partnership Agreement expected to attract investments into renewable energy, logistics and climate-smart infrastructure.
Economists expressed differing views on the plan. Dr. Paul Alaje warned that climate-linked loans remain commercial obligations and could increase debt servicing costs, particularly given Nigeria’s exposure to currency depreciation. He argued that alternatives such as boosting exports and remittances could strengthen reserves without additional borrowing.
Meanwhile, CPPE’s Dr. Muda Yusuf and shareholder leader Patrick Ajudua said green finance could reduce energy costs, enhance productivity and support economic diversification if structured carefully. Summit University Vice-Chancellor Prof. Abiodun Musa added that Nigeria has strong potential in renewables and decarbonisation projects but must address infrastructure gaps and policy weaknesses.
Experts agreed that Nigeria’s climate ambitions present significant opportunities, but success will depend on disciplined financing, policy coherence and a clear focus on fiscal sustainability.
