Landscape of Climate Finance in Nigeria 2025

In 2021/22, Nigeria received USD 2.5 billion in climate finance, representing a 32% increase from 2019/20 but leaving an annual finance gap of USD 27.2 billion. Public actors provided 70% of this funding, with multilateral development finance institutions (DFIs) as the largest providers at 48%. Mitigation investments (USD 1.2 billion) dominated, primarily driven by solar PV, while adaptation finance (USD 0.74 billion) covered only 6% of estimated needs. The report highlights a heavy reliance on debt for international public finance and identifies critical barriers such as high capital costs, a lack of bankable projects, and limited green fiscal incentives.

• Nigeria's climate finance grew to USD 2.5 billion in 2021/22, a 32% increase from the USD 1.9 billion recorded in 2019/20. Despite this growth, the country faces an annual climate finance gap of USD 27.2 billion.
• Public actors provided 70% of climate finance, with multilateral development finance institutions (DFIs) contributing 48%. Private actors provided 30% of the total, which is higher than the African average of 18%; corporations accounted for over three-fifths of this private finance, focusing largely on small scale solar PV.
• Mitigation investments totaled USD 1.2 billion, dominated by solar PV, while adaptation finance was USD 0.74 billion, meeting only 6% of estimated needs. Half of adaptation finance was directed toward the Agriculture, Forestry and Other Land Uses (AFOLU) and fisheries sector.
• Dual-benefit finance, which targets both emissions reduction and adaptive capacity, accounted for 20% of climate finance (USD 497 million) in 2021/22, primarily within the AFOLU and fisheries sector.
• International public climate finance is predominantly debt-based, with 54% as concessional and 35% as non-concessional debt. This is a concern as the Nigerian government spends over 80% of its revenue on debt settlement or servicing.
• Key barriers to scaling climate finance include the high cost of capital, a shortage of bankable projects with sufficient scale, lack of technical skills and awareness, data gaps, limited access to affordable green technology, and pro-fossil fuel fiscal incentives.

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} }