Nigeria is stepping up efforts to finance its energy transition with the launch of a $2 billion climate-focused fund aimed at supporting clean energy, low-emission infrastructure and climate-resilient projects. President Bola Tinubu unveiled the plan at the Abu Dhabi Sustainability Week, where he said the fund would help unlock private capital and scale projects critical to Nigeria’s transition agenda, as reported by Reuters.
The initiative will be anchored by a National Climate Change Fund targeting $2 billion in capitalisation, alongside a Climate Investment Platform designed to mobilise an additional $500 million for climate-resilient infrastructure. Tinubu pointed to strong investor appetite for Nigeria’s green finance instruments, noting that recent sovereign and subnational green bond issuances were significantly oversubscribed, figures highlighted by Reuters showed.
The fund is expected to support projects that cut gas flaring and methane emissions, expand renewable energy access and strengthen climate adaptation, aligning with Nigeria’s Energy Transition Plan and its goal of achieving net-zero emissions by 2060. The president also announced a Comprehensive Economic Partnership Agreement with the United Arab Emirates, which he said would deepen cooperation in renewables, infrastructure and climate-smart investment.
Officials said the new fund builds on existing green finance structures, including renewable energy vehicles backed by the Nigeria Sovereign Investment Authority, and will be supported by a forthcoming climate and green industrialization investment framework to guide private sector participation. The government believes the combined approach will position Nigeria as a leading destination for climate capital in Africa while supporting long-term economic growth.
