Domestic energy storage project financing options in Nigeria 2025

Is climate finance a debt based investment in Nigeria?

International public climate finance to Nigeria, which accounts for the bulk of flows, was largely channeled as debt, both concessional (54%) and non-concessional (35%). Reliance on debt-based climate investment is cause for concern, given the country’s already substantial debt burden.

How does mitigation finance work in Nigeria?

Investments by a mix of public (49%) and private (51%) actors contribute to a relatively wide range of mitigation finance instruments in Nigeria. Equity accounted for 47% of total mitigation finance, largely reflecting corporates investing in renewable energy.

Why should we invest in energy-eficient cooling systems in Nigeria?

Finally, investing in energy-eficient cooling systems will be important for climate action in Nigeria, as the incidence and duration of heat waves grow, particularly in large urban areas exposed to urban heat island efects. Nigeria is already the largest and one of the fastest-growing markets for cooling products in Africa (FSD Africa, 2022).

Will blended finance deliver on Nigeria's NDC?

Blended finance—using catalytic (concessional) capital from public or philanthropic sources to mobilize additional private sector investment—will be essential for delivering on Nigeria’s NDC, given the shortfall in public climate finance (both domestic and international) and the current low participation of private sector investors.

How much of Nigeria's climate finance goes to adaptation?

Adaptation (USD 0.74 billion) accounted for less than one-third of Nigeria’s climate finance, covering only 6% of the country’s estimated adaptation finance needs, despite spiraling climate risks. Half of Nigeria’s adaptation finance went to the AFOLU6 and fisheries sector.

How much does Nigeria spend on climate finance?

Set in a broader context, and relative to opportunities for climate action, Nigeria’s USD 2.5 billion in tracked climate finance is minimal. Representing less than 1% of national GDP5, this amount was almost equivalent to the country’s spending on foreign debt servicing in 2021/22 (USD 2.3 billion) (DMO, 2021; DMO, 2022).