Landscape of Climate Finance in Nigeria 2024

In 2021/22, Nigeria received USD 2.5 billion in climate finance, a 32% increase from 2019/20, yet this remains far below the estimated annual need of USD 29.7 billion. Public actors provided 70% of the funding, led by multilateral development finance institutions (DFIs), while private finance accounted for 30%, primarily driven by corporate investments in solar PV. Mitigation efforts, particularly in energy systems, dominated the landscape, while adaptation finance reached only USD 735 million, covering just 6% of annual needs. The report highlights a heavy reliance on debt-based financing, which is concerning given Nigeria's high debt-servicing costs. Key barriers include the high cost of capital, a lack of bankable projects, and data gaps. The authors recommend operationalizing the National Climate Change Fund, prioritizing anticipatory adaptation, and pursuing innovative financing such as green bonds and debt-for-climate swaps.

• Nigeria's climate finance flows grew by 32% between 2019/20 and 2021/22, reaching USD 2.5 billion, but this represents only 8% of the estimated USD 29.7 billion needed annually for mitigation and adaptation until 2030.
• Public actors provided the majority of climate finance (70% or USD 1.8 billion), with multilateral development finance institutions (DFIs) being the largest single source, contributing USD 1.2 billion.
• Private climate finance accounted for 30% of the total (USD 0.8 billion), with corporations providing 65% of that amount, primarily through equity financing for solar PV power and heat generation.
• Mitigation investments totaled USD 1.2 billion, with energy systems accounting for 68% of this total, largely driven by solar PV. Other sectors like buildings, waste, and industry received little to no finance.
• Adaptation finance reached USD 735 million, covering only 6% of annual needs. Half of this funding was directed toward the agriculture, forestry, other land uses (AFOLU), and fisheries sector.
• Dual-benefit finance, which addresses both mitigation and adaptation, accounted for 20% of total climate finance (USD 497 million), with 80% of these funds going to the AFOLU and fisheries sector.
• International public climate finance is heavily reliant on debt, with 54% provided as concessional and 35% as non-concessional debt, which is problematic as Nigeria spends over 80% of its revenue on debt servicing.
• The report identifies several critical barriers to scaling finance, including the high cost of capital, a lack of bankable projects with sufficient scale, and a shortage of technicians for renewable technology maintenance.
• Nigeria has a significant opportunity to reduce methane emissions by ending gas flaring, with an estimated USD 1.96 billion needed by 2030 to achieve this goal.

APA

Stout, S., Gupta, I., Balm, A., & Meattle, C. (2024). Landscape of Climate Finance in Nigeria 2024. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Landscape-of-Climate-Finance-in-Nigeria-2024.pdf

Chicago

Stout, Sean, Ishrita Gupta, Anna Balm, and Chavi Meattle. Landscape of Climate Finance in Nigeria 2024. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Landscape-of-Climate-Finance-in-Nigeria-2024.pdf.

Wikipedia

{{cite report |last1=Stout |first1=Sean |last2=Gupta |first2=Ishrita |last3=Balm |first3=Anna |last4=Meattle |first4=Chavi |title=Landscape of Climate Finance in Nigeria 2024 |publisher=Climate Policy Initiative |date=October 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Landscape-of-Climate-Finance-in-Nigeria-2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stout2024landscape, author = {Stout, Sean and Gupta, Ishrita and Balm, Anna and Meattle, Chavi}, title = {{Landscape of Climate Finance in Nigeria 2024}}, institution = {Climate Policy Initiative}, year = {2024}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Landscape-of-Climate-Finance-in-Nigeria-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }