Nigeria “received” $4.928 billion for 828 climate-related projects, between 2015 and 2021, according to a report produced by Connected Development (CODE) in partnership with INKA Consult and Oxfam International.
The announcement was made on Monday during the official launch of Oxfam’s 2025 Annual Davos Report on Inequality and the co-launch of the Climate Finance Report, attended by Nairametrics.
In the report titled “The State of Climate Finance in Nigeria,” it was highlighted that the country faces significant challenges in mobilizing sufficient climate finance to meet its climate action goals.
“Between 2015 and 2021, the country received $4.928 billion for 828 climate-related projects, yet this amount remains far below the estimated $177.7 billion needed annually to achieve its climate commitments,” the report stated.
It further noted that this translates to an average of 118 projects per year and an average annual climate finance of $704 million.
Climate Finance Adds to Nigeria’s Debt
According to the report, a large portion of the funding was received in the form of concessional loans, adding to Nigeria’s already heavy debt burden.
“This dimension of climate finance further tightens Nigeria’s debt portfolio,” it stated.
“Nigeria commits a significant portion of its GDP to debt servicing and interest repayments on loans. Current debt levels stand at $108 billion, with external debt at $41.59 billion. This amounts to over 37% of Nigeria’s GDP allocated to debt servicing and loan repayments,” the report added.
While key sectors such as agriculture, energy, and water have benefited from international support, the report emphasized gaps in mobilizing domestic resources and ensuring effective governance at both national and sub-national levels.
“The top sectors funded by climate finance in Nigeria include Agriculture, Forestry, and Other Land Uses (AFOLU), Energy, Water and Sanitation, Education, and Financial Services,” it stated.
Despite Nigeria’s alleged heavy reliance on international providers for climate finance, with limited contributions from domestic investments, the report stressed the need for improved policy integration, strengthened climate governance, and greater empowerment of sub-national governments.
Recommendations
The report highlighted the importance of improving local capacity, increasing public-private partnerships, and developing robust tracking mechanisms to ensure transparency and accountability in the use of climate funds.
- The report advised governments to prioritize climate considerations in budgets and policymaking while enhancing local government capacity for climate action and domestic funding mobilization through green bonds and infrastructure investment.
It stressed the need to develop robust climate governance frameworks, including budget tagging mechanisms, to ensure effective implementation of climate.
“Policymakers should prioritize climate considerations in annual budgets through training and stakeholder engagement.
“Sub-national governments need support to develop and implement climate policies and action plans.
“Local governments should be empowered with the mandate, resources, and capacity to address climate change at the local level,” it added.
- For the Private Sector, the report called for expanded green finance portfolios even as stakeholders invest in climate-resilient technologies.
- Civil Society organizations were also advised to monitor and advocate for transparent climate finance flows.
- It urged CSOs to continue raising awareness about climate justice and finance mechanisms while developing tools for tracking and reporting climate finance.
The report concluded by stressing the need for robust partnerships across all levels of government, civil society, and the private sector to ensure Nigeria achieves its climate action goals effectively and sustainably.
