Landscape of Climate Finance in Nigeria 2025

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, led by multilateral development finance institutions, provided 70% of the funding, while private contributions reached 30%, primarily driven by corporate investments in solar PV. Mitigation efforts dominated the landscape, particularly in energy systems, while adaptation finance reached only USD 0.74 billion, covering just 6% of estimated needs. The report highlights critical barriers including high capital costs, a lack of bankable projects, and heavy reliance on debt, which is concerning given Nigeria's substantial debt burden. Key recommendations include operationalizing the National Climate Change Fund, prioritizing anticipatory adaptation, and developing a domestic green industry to reduce import dependence.

• Nigeria's climate finance flows grew to USD 2.5 billion in 2021/22, but an annual finance gap of USD 27.2 billion persists relative to estimated needs.
• Public actors provided 70% (USD 1.8 billion) of climate finance, with multilateral development finance institutions (DFIs) as the largest providers at USD 1.2 billion.
• Private climate finance accounted for 30% (USD 0.8 billion) of the total, with corporations contributing over three-fifths of this amount, primarily for small-scale solar PV.
• Mitigation investments totaled USD 1.2 billion, dominated by energy systems (68%), while sectors like buildings, waste, and industry received little-to-no finance.
• Adaptation finance reached USD 0.74 billion, meeting only 6% of estimated needs, with half of these funds directed toward the AFOLU and fisheries sector.
• International public climate finance is heavily reliant on debt, with 54% provided as concessional and 35% as non-concessional, exacerbating Nigeria's debt burden where over 80% of revenue is spent on debt servicing.
• Dual-benefit finance, which addresses both mitigation and adaptation, accounted for 20% (USD 497 million) of total climate finance, mostly in the AFOLU and fisheries sector.
• Significant barriers to scaling finance include the high cost of capital, a lack of bankable projects with sufficient scale, and a shortage of locally appropriate green technology.
• Nigeria ranks seventh globally in gas flaring volume, with approximately 40% of produced gas flared; ending this is identified as a low-cost mitigation opportunity requiring USD 1.96 billion by 2030.

APA

Stout, S., Gupta, I., Balm, A., & Meattle, C. (2025). Landscape of Climate Finance in Nigeria 2025. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/05/Landscape-of-Climate-Finance-in-Nigeria-2025.pdf

Chicago

Stout, Sean, Ishrita Gupta, Anna Balm, and Chavi Meattle. Landscape of Climate Finance in Nigeria 2025. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/05/Landscape-of-Climate-Finance-in-Nigeria-2025.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 2025 |publisher=Climate Policy Initiative |date=April 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/05/Landscape-of-Climate-Finance-in-Nigeria-2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stout2025landscape, author = {Stout, Sean and Gupta, Ishrita and Balm, Anna and Meattle, Chavi}, title = {{Landscape of Climate Finance in Nigeria 2025}}, institution = {Climate Policy Initiative}, year = {2025}, month = apr, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/05/Landscape-of-Climate-Finance-in-Nigeria-2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }