FG Unveils $2bn Energy Transition Fund, Seeks $30bn Annual Investment

The Federal Government said it is relying on green finance to drive its energy transition, with President Bola Tinubu unveiling plans for a $2 billion climate fund on Tuesday.

The President, while speaking at the Abu Dhabi Sustainability Week summit, said the country’s Climate Investment Platform will mobilise $500 million for climate-resilient infrastructure.

According to him, the National Climate Change Fund targets a $2bn capitalisation to back projects that cut emissions and boost resilience.

Tinubu also announced that Nigeria and the United Arab Emirates had signed a Comprehensive Economic Partnership Agreement (CEPA) to boost trade and investment across various sectors, including renewable energy, aviation, logistics, agriculture, digital trade, and climate-smart infrastructure.

The country’s major environmental and climate policy challenges include reducing gas flaring and methane emissions, as it works towards its Energy Transition Plan, which targets net-zero emissions by 2060 while delivering universal energy access.

Nigeria’s green bond programme has drawn strong investor interest. A 50 billion naira ($38 million) sovereign green bond issued in 2025 attracted 91 billion naira in subscriptions, while Lagos State’s green bond was oversubscribed by nearly 98%, the president said.

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According to him, his government was also seeking to unlock $25–$30 billion annually in climate finance. A new Climate and Green Industrialisation Investment Playbook will help private investors and other stakeholders navigate manufacturing policy and the regulatory landscape.

This builds on past initiatives, including the Nigeria Sovereign Investment Authority’s $500 million Distributed Renewable Energy Fund, launched in March 2025 to catalyse local financing.

“These reforms show Nigeria is ready for business,” the president said, adding that non-oil exports have grown by 21% and investment commitments now exceed $50 billion across key sectors.

He added that Nigeria is prioritising technology partnerships to modernise its grid and deploy artificial intelligence for efficiency, alongside pilot projects in electric mobility and green industrialisation.