· Climate Finance in Nigeria report by Connected Development (CODE), OXFAM and INKA Consult
By Hussaini Garba Mohammed
In accordance with the principle of “common but differentiated responsibility and respective capabilities” set out during the Paris Agreement Convention, developed country Parties are to provide financial resources to assist developing country Parties in implementing the objectives of the UNFCCC. The Paris Agreement reaffirms the obligations of developed countries, while for the first time also encouraging voluntary contributions by other Parties. Developed country Parties should also continue to take the lead in mobilizing climate finance from a wide variety of sources, instruments and channels, noting the significant role of public funds, through a variety of actions, including supporting country-driven strategies, and taking into account the needs and priorities of developing country Parties. Such mobilization of climate finance should represent a progression beyond previous efforts.
What is climate finance?
Climate finance refers to local, national or transnational financing—drawn from public, private and alternative sources of financing—that seeks to support mitigation and adaptation actions that will address climate change. The Convention, the Kyoto Protocol and the Paris Agreement call for financial assistance from Parties with more financial resources to those that are less endowed and more vulnerable. This recognizes that the contribution of countries to climate change and their capacity to prevent it and cope with its consequences vary enormously. Climate finance is needed for mitigation, because large-scale investments are required to significantly reduce emissions. Climate finance is equally important for adaptation, as significant financial resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate.
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UN climate financing involves a system of funds, established under the UNFCCC, where developed countries provide financial support to developing countries for climate action. A key term is the previous commitment of mobilizing $100 billion annually by 2020, and the new collective quantified goal (NCQG) agreed upon at COP29 aims to reach $300 billion annually by 2035. This financing covers both mitigation and adaptation efforts, with the Green Climate Fund (GCF) being a primary mechanism.
Climate change financing is crucial for both mitigation and adaptation, requiring trillions in public and private investment to meet climate goals like limiting global warming. A key opinion is that the current funding is insufficient, particularly for vulnerable countries, and that a new, more effective system is needed to ensure finance is adequate, predictable, and focused on supporting both climate resilience and the transition to a low-carbon economy.
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As you know according to the world-wide understanding, Climate change financing is the funding used to support climate change mitigation and adaptation actions, sourced from public, private, and alternative sources at local, national, and transnational levels. It is essential for both reducing greenhouse gas emissions and helping communities adapt to climate change impacts. While global financing has reached over $1 trillion, it falls short of the estimated $4.35 trillion needed annually by 2030, and its distribution, particularly to vulnerable nations, is a major challenge.
Reason and why it is important to build resilience: Climate finance provides resources for adaptation and resilience-building, which is vital for vulnerable communities facing climate shocks.
Supports developing nations: It is a key component of international agreements, such as the Paris Agreement, to help developing countries take climate action.
Challenges of Climate Financing
Insufficient scale: The total amount of climate finance is insufficient to meet global climate goals, and projections estimate a need for over $4.35 trillion annually by 2030.
Unequal distribution: Climate finance is not reaching the regions that need it most, with developing economies and Least Developed Countries receiving a disproportionately small share of the total funding.
New developments about Climate Finance
New goals: Nations are discussing a new collective quantified goal (NCQG) to significantly scale up climate finance provisions from developed to developing countries, aiming to go above the previous target of $100 billion per year.
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Focus on quality: There is a growing emphasis on improving the quality of financing, making it more transparent, accessible, and effective.
Nigeria’s climate journey mirrors the paradox of abundance amid scarcity
Nigeria a country richly endowed with human and natural resources yet struggling to mobilize the finances needed to safeguard both from a warming planet. The recently released State of Climate Finance in Nigeria report by Connected Development (CODE), OXFAM and INKA Consult exposes this contradiction in vivid detail. It reveals a nation with big climate ambitions but a fragile financial architecture, weighed down by policy inconsistencies, weak subnational capacity, and limited accountability.
In my opinion the parley with different Journalists to discourse on climate finance in Nigeria, its aim to state, report the climate finances in Nigeria to showcase the growing impact of climate change on vulnerable communities, CODE, in collaboration with climate governance experts from OXFAM, working together on the recent statement released by the State of Climate Finance report about Nigeria.
If other Civil Society, other NGOs can called the attention of the Media to play roles to design a road map to close the gaps through a media awareness campaign, like CODE, and also expose financial gaps and accountability through good reports. I believed Nigerian can be top countries that follow the policies and guideline about climate change mitigation and adaptation actions.
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The report’s key takeaway is sobering: only 19% of Nigeria’s climate finance comes from domestic investment, while 76% is sourced from multilateral and bilateral donors. This imbalance not only questions Nigeria’s ownership of its climate future but also underscores a dangerous dependence on external goodwill. For a country already facing devastating floods, desertification, and erratic rainfall patterns, this dependency is unsustainable.
At the heart of the problem lies a weak framework for tracking, budgeting, and reporting climate-related expenditure. The Federal Ministry of Environment’s Climate Public Expenditure Institutional Review (CPEIR) — launched in 2017 to guide budget tagging — remains largely unimplemented. Without a reliable system to know who funds what, and to what effect, Nigeria’s climate spending risks becoming a black box.
The Lagos State example offers a glimmer of hope. The state’s Climate Adaptation and Resilience Plan has set a new benchmark in subnational climate accountability, demonstrating that decentralized action is possible with political will. Yet, as the report shows, only seven states have publicly visible climate policies, and most local governments lack the technical know-how and funding access to operationalize adaptation measures. This is tragic, considering that the first victims of climate disasters are often rural communities far removed from federal corridors of power.
Civil Society and the Power of Participation
One of the report’s strongest sections focuses on civil society’s growing but underutilized role in climate finance governance. Organizations like Connected Development (CODE), through its Follow the Money initiative and NOMTrac tool, have pioneered innovative approaches to community-based monitoring of public expenditure. These efforts empower citizens to track projects, demand transparency, and hold leaders accountable. Similarly, networks such as the Climate and Sustainable Development Network (CSDevNet) and ActionAid Nigeria are promoting local ownership of climate justice and resource mobilization.
However, the participation of civil society remains largely ad hoc and underfunded. The Climate Change Act of 2021 promises citizen inclusion, but implementation is slow and tied to ministry budgets that barely sustain basic operations. Worse still, many government agencies resist Freedom of Information (FOI) requests on climate funding, eroding trust and making public oversight difficult. Transparency should not be treated as charity; it is the oxygen of effective climate governance.
Private Sector: A Sleeping Giant
The report identifies the private sector as a critical — yet largely passive — player in Nigeria’s climate finance ecosystem. Encouragingly, recent innovations such as the FMDQ Green Exchange and Sustainability Disclosure Guidelines by the Nigerian Exchange Group have begun to channel green investment into renewable energy, sustainable land use, and clean transport. Green bonds, too, have emerged as a promising mechanism, mobilizing over $165 million to date for verified climate projects.
Still, these initiatives barely scratch the surface of Nigeria’s financing gap. To meet its Nationally Determined Contributions (NDCs) and achieve net-zero emissions by 2060, Nigeria needs investments amounting to nearly 4% of its annual GDP — a monumental challenge in a debt-burdened economy. The private sector must be incentivized not just through tax breaks but also through a predictable regulatory environment that rewards long-term sustainability over short-term profit.
Decentralization and Local Adaptation
A recurring theme in the report is the urgent need to devolve climate finance decision-making. While states enjoy constitutional autonomy over environmental matters, most have abdicated this responsibility to the federal level. Local governments — the frontline responders to floods, erosion, and droughts — remain underfunded and undertrained. Empowering them requires more than rhetoric; it demands capacity-building, technical support, and clear budgetary mandates.
The success of local-led adaptation projects, such as biogas production in Ogun State and forest conservation in Cross River, proves that community-driven solutions work. What is missing is consistent financial support to scale them up. International partners and national institutions like the Bank of Industry and Nigeria’s Sovereign Investment Authority must collaborate to create risk-sharing mechanisms that make these local projects bankable.
Bridging the Trust Gap
Trust — between government, citizens, and donors — is the currency of climate finance. Unfortunately, Nigeria’s system is low on this capital. Too often, funds meant for adaptation disappear into opaque bureaucracies, and citizens only hear about climate budgets after disasters strike. The State of Climate Finance report calls for the establishment of a National Climate Finance Hub, a centralized platform for knowledge sharing, coordination, and transparency. Such a hub could bridge the information gap, track progress, and facilitate collaboration across ministries, states, civil society, and the private sector.
Raising public awareness is another frontier. Climate finance must move beyond boardrooms and technical reports to the people it serves — farmers, fishermen, traders, and vulnerable communities. Education campaigns that demystify climate funds can empower citizens to become watchdogs and participants in their own survival.
The report highlighted the important of how Nigerian journalists need to do much more better in reporting climate finance and inclusion journalist have the crucial role of climate change reporting to shape the public policy and climate education to more Nigerians and beyond.
A Call to Action
Climate finance is not just about numbers; it is about justice, equity, and survival. Nigeria cannot afford to treat it as an elite conversation. The report rightly calls for stronger political will, integrated budgetary processes, and better coordination across government tiers. Policymakers must see climate finance not as a burden but as an investment in economic resilience and national security.
Ultimately, the path forward lies in bridging the gap between ambition and accountability. Nigeria’s fight against climate change will not be won in conference halls but in communities where citizens demand to know how every naira earmarked for climate action is spent. Transparency, decentralization, and innovation — these are not options; they are imperatives.
If Nigeria must lead Africa’s green future, it must start by cleaning its own financial ecosystem — ensuring that every climate dollar works where it matters most: protecting lives, livelihoods, and the land itself.
HUSSAINI GARBA MOHAMMED, FIIM, MCIA, mips, MBA, DoE, Fellow African Investigative Journalism Conference (AIJC-2020), Berlin Energy Transition Dialogue Media Fellow (BETD), Associate Member, Nigeria Union of Journalist (NUJ) , Climate Change and Environmental Analyst.
+2348037042548 hussainigm@gmail.com
