FG LAUNCHES $2BN ENERGY TRANSITION FUND, TARGETS $30BN IN ANNUAL INVESTMENTS
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By: Balogun Ibrahim
The Federal Government has announced that it is leveraging green finance to advance its energy transition agenda, as President Bola Tinubu on Tuesday unveiled plans to establish a $2 billion climate fund.
Speaking at the Abu Dhabi Sustainability Week summit, President Bola Tinubu said Nigeria’s Climate Investment Platform is expected to mobilise $500 million to support climate-resilient infrastructure projects.
He explained that the National Climate Change Fund is designed to achieve a $2 billion capitalisation to finance initiatives aimed at reducing emissions and strengthening climate resilience.
The President also announced that Nigeria and the United Arab Emirates have signed a Comprehensive Economic Partnership Agreement (CEPA) to expand trade and investment across key sectors, including renewable energy, aviation, logistics, agriculture, digital trade, and climate-smart infrastructure.
Tinubu noted that Nigeria continues to face significant environmental and climate policy challenges, particularly in curbing gas flaring and methane emissions, as it implements its Energy Transition Plan, which seeks to achieve net-zero emissions by 2060 while ensuring universal access to energy.
President Bola Tinubu said Nigeria’s green bond programme has continued to attract strong investor confidence, noting that a ₦50 billion ($38 million) sovereign green bond issued in 2025 recorded ₦91 billion in subscriptions. He added that Lagos State’s green bond also witnessed significant demand, with subscriptions exceeding the offer by nearly 98%.
He said the administration is working to unlock between $25 billion and $30 billion in climate finance each year, adding that a newly introduced Climate and Green Industrialisation Investment Playbook will guide private investors and other stakeholders through Nigeria’s manufacturing policies and regulatory environment.
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The move builds on earlier initiatives such as the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, launched in March 2025 to stimulate local financing.
“These reforms demonstrate that Nigeria is open and ready for business,” President Bola Tinubu said, noting that non-oil exports have increased by 21 per cent, while investment commitments have surpassed $50 billion across strategic sectors.
He added that the country is placing priority on technology partnerships to modernise the national grid and deploy artificial intelligence to improve efficiency, alongside pilot projects in electric mobility and green industrialisation.
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