Financing Net Zero Carbon Buildings in Nigeria

The report identifies a fragmented policy environment and significant perceived cost barriers hindering the adoption of net zero carbon buildings in Nigeria. While the country possesses an advanced green bond market and established conventional debt financing, most other financial and policy instruments remain nascent or small-scale. The authors recommend establishing a national net zero carbon building strategy, increasing professional capacity, and ensuring a just transition that links building affordability with local job creation.

• Nigeria faces a substantial housing shortage of 17 million units, with an estimated future requirement of 700,000 units annually by 2050, creating a significant opportunity for decarbonization in the built sector.
• The policy landscape for net zero carbon buildings in Nigeria is fragmented and lacks an overarching strategy. Existing instruments, such as the 2017 National Building Energy Efficiency Code (BEEC) and the 2021 National Climate Change Policy, are generally in early stages or deployed via small-scale pilots.
• Financial instruments for the sector include 17 identified tools, about half of which are nascent. Nigeria is noted for having one of the most advanced green bond markets in Sub-Saharan Africa, particularly for sovereign and corporate bonds, though municipal and state bonds are less active.
• Stakeholders in the Nigerian construction and building sector perceive net zero carbon measures to be more expensive than conventional methods, although the report notes that innovative approaches and market scaling could reduce both construction and operational costs.
• Effective implementation of net zero carbon buildings requires addressing the lack of city-level governance, as cities are fragmented into multiple Local Government Authorities (LGAs) with coordination occurring at the state level.

APA

Beavor, A., Khan, S., Makarem, N., Obasiohia, B. O., Oketa, N. J., & Fernandes, P. D. A. (2023). Financing Net Zero Carbon Buildings in Nigeria. Climate Policy Initiative. https://www.climatepolicyinitiative.org/publication/financing-net-zero-carbon-buildings-in-nigeria/

Chicago

Beavor, Andreas, Samia Khan, Naji Makarem, Benneth Obinna Obasiohia, Nnanna Joemartins Oketa, and Pedro de Aragão Fernandes. Financing Net Zero Carbon Buildings in Nigeria. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/publication/financing-net-zero-carbon-buildings-in-nigeria/.

Wikipedia

{{cite report |last1=Beavor |first1=Andreas |last2=Khan |first2=Samia |last3=Makarem |first3=Naji |last4=Obasiohia |first4=Benneth Obinna |last5=Oketa |first5=Nnanna Joemartins |last6=Fernandes |first6=Pedro de Aragão |title=Financing Net Zero Carbon Buildings in Nigeria |publisher=Climate Policy Initiative |date=11 October 2023 |url=https://www.climatepolicyinitiative.org/publication/financing-net-zero-carbon-buildings-in-nigeria/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{beavor2023financing, author = {Beavor, Andreas and Khan, Samia and Makarem, Naji and Obasiohia, Benneth Obinna and Oketa, Nnanna Joemartins and Fernandes, Pedro de Aragão}, title = {{Financing Net Zero Carbon Buildings in Nigeria}}, institution = {Climate Policy Initiative}, year = {2023}, month = oct, url = {https://www.climatepolicyinitiative.org/publication/financing-net-zero-carbon-buildings-in-nigeria/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }