Landscape of Climate Finance in Nigeria 2025

This report by the Climate Policy Initiative provides a baseline of climate finance flows in Nigeria for 2021/22, highlighting a significant gap between tracked investments and the funding required to meet the country's energy transition and infrastructure goals.

• In 2021/22, Nigeria received USD 2.5 billion in public and private climate finance from domestic and international sources, representing a 32% increase from the USD 1.9 billion recorded in 2019/20. Despite this growth, there is an annual climate finance gap of USD 27.2 billion. This tracked finance represents less than 1% of national GDP and is significantly lower than the USD 9.3 billion spent on government fossil fuel subsidies in 2022 and the USD 6.7 billion in estimated loss and damage from floods in the same year.
• Public actors provided 70% of Nigeria's climate finance, with multilateral development finance institutions (DFIs) serving as the largest providers at 48%. Private actors contributed 30% of the total, an increase from 23% in 2019/20. This private sector share is higher than the African average of 18%, with corporations accounting for over three-fifths of private climate finance, primarily investing in small scale solar PV.
• Mitigation investments dominated the landscape at USD 1.2 billion, driven largely by solar PV, though sectors like buildings, waste, and industry received little-to-no finance. Adaptation finance totaled USD 0.74 billion, covering only 6% of estimated needs. Half of this adaptation funding was directed toward the Agriculture, Forestry and Other Land Uses (AFOLU) and fisheries sector. Dual-benefit finance, which addresses both emissions and adaptive capacity, accounted for 20% (USD 497 million) of total climate finance.
• International public climate finance is primarily delivered as debt, with 54% being concessional and 35% non-concessional. This reliance on debt is critical as the Nigerian government spends over 80% of its revenue on debt settlement or servicing. The report identifies several barriers to scaling finance, including the high cost of capital, a lack of bankable projects, data gaps, and limited access to affordable green technology.

APA

Climate Policy Initiative (2025). Landscape of Climate Finance in Nigeria 2025. https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-nigeria-2025/

Chicago

Climate Policy Initiative. Landscape of Climate Finance in Nigeria 2025. 2025. https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-nigeria-2025/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Landscape of Climate Finance in Nigeria 2025 |date=7 May 2025 |url=https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-nigeria-2025/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025landscape, author = {{Climate Policy Initiative}}, title = {{Landscape of Climate Finance in Nigeria 2025}}, institution = {Climate Policy Initiative}, year = {2025}, month = may, url = {https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-nigeria-2025/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }