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Nigeria needs an estimated $337 billion by 2035 to finance its climate and development priorities.
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Policymakers say private capital will be critical to funding renewable energy, mini-grids and other green investments.
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Experts warn that weak institutional capacity and a shortage of investment-ready projects could limit access to climate finance.
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The challenge is shifting Nigeria’s climate ambitions from policy commitments to projects that generate jobs, productivity and economic growth.
September 11, (THEWILL) – Nigeria will need to mobilise an estimated $337 billion by 2035 to finance its climate and development priorities as policymakers and development finance experts push for the country’s environmental commitments to translate into investment, jobs and economic growth.
The funding requirement emerged at the Nigerian Economic Summit Group’s National Green Growth Dialogue, held on Thursday in collaboration with the Federal Ministry of Budget and Economic Planning. The meeting brought together government officials, financiers and private-sector representatives to examine barriers to financing Nigeria’s transition to a greener economy.
Adesola Olatunde, Chief Scientist at the National Council on Climate Change (NCCC), said Nigeria’s climate strategy should be treated as an economic development issue rather than solely an environmental agenda, particularly as the country confronts energy, agricultural and productivity challenges.
Nigeria’s updated Nationally Determined Contribution, or NDC 3.0, targets a 32 per cent reduction in emissions by 2035 and forms part of the country’s broader ambition to achieve net-zero emissions by 2060.
Olatunde said meeting the country’s climate and development objectives would require an estimated $337 billion by 2035, with substantial funding expected from private investors and other sources. Priority areas include renewable energy, regional mini-grids and other clean-energy projects.
She said the challenge was moving from policy commitments to implementation.
Nigeria faces a $337 billion climate financing test
Climate finance has emerged as one of the biggest constraints confronting developing economies seeking to balance emissions reduction with the need to expand electricity access, industrial production and employment.
Temitope Akinyemi, Special Adviser to the Minister of Finance and Coordinating Minister of the Economy on Climate Finance, said Nigeria needed stronger structures for mobilising and deploying climate funding.
He pointed to the Climate Change Fund established under the Climate Change Act, while acknowledging that gaps remained in the framework required to maximise its impact.
Akinyemi also cited Mission 300, the World Bank Group and African Development Bank initiative seeking to connect 300 million Africans to electricity by 2030, as an example of efforts to mobilise capital for energy access across the continent.
Beyond raising capital, participants identified the shortage of investment-ready projects as another obstacle to attracting financing.
Imohe Omosede, Head of Climate Finance at the Development Bank of Nigeria, said aggregating smaller projects could make them more attractive to investors while expanding opportunities for micro, small and medium-sized enterprises.
She said financing could be structured around established off-takers and their value chains, allowing smaller businesses that may lack sufficient collateral to gain access to capital and participate in green investments.
Why bankable projects could determine Nigeria’s green transition
At the subnational level, Ibrahim Shelleng, Senior Special Assistant to the President on Climate Finance and Stakeholder Engagement, said only a limited number of Nigerian states currently possessed the institutional capacity required to access significant climate funding.
He called for stronger coordination between federal and state governments and clearer institutional responsibilities to prevent financing opportunities from remaining concentrated in a small number of states.
The discussion also broadened the green investment debate beyond energy infrastructure.
Metseagharun Weyimi, Head of Environment at Nigeria LNG, said forests, wetlands and mangroves should increasingly be regarded as economic assets capable of supporting employment, biodiversity conservation and tourism.
He warned that declining mangrove coverage, forest conversion and rising sea levels were placing increasing pressure on ecosystems and inland waterways.
Gerald Esambe, Head of Climate Change and Green Growth at the African Development Bank, said the lender was supporting governments through policy advice and financing for climate adaptation and mitigation projects.
The discussions underscored a central challenge for Nigeria: while the country has established increasingly ambitious climate targets, their economic impact will depend on its ability to develop bankable projects, attract private capital and build institutions capable of deploying funding effectively.
The dialogue was held ahead of the 32nd Nigerian Economic Summit.
Segun Adeyemi serves as the Associate Editor of THEWILL Newspaper, leveraging more than ten years of editorial expertise and a proven track record in mainstream journalism.
