The federal government has taken steps to operationalise Nigeria’s Climate Change Fund (CCF).
The fund is a strategic financial instrument designed to support the country’s climate action and sustainability efforts.
In a bid to ensure effective implementation, key financial institutions—the Nigeria Sovereign Investment Authority (NSIA), the Bank of Industry (BOI), and the Development Bank of Nigeria (DBN)—have been identified as potential managers of the Fund.
This development was part of discussions on Friday in Abuja between the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Director-General of the Nigeria Climate Change Council (NCCC), Dr. Nkiruka Madueke.
At the meeting, both parties agreed on the importance of aligning Nigeria’s broader economic planning with its climate commitments under international and domestic frameworks.
These include the national target of achieving net-zero greenhouse gas emissions, as well as the implementation of the third-generation Nationally Determined Contributions (NDCs).
Madueke pointed out that the Climate Change Fund remains significantly under-funded, thereby limiting the execution of critical climate projects and regulatory responsibilities established under the Climate Change Act.
She appealed for stronger support from the Ministry of Finance, adding that NSIA, BOI, and DBN have all shown readiness to manage the Fund once it becomes operational.
According to the NCCC Director-General, the Council’s immediate priorities include finalizing a climate finance taxonomy to guide investors, advancing the development of a robust carbon market, and protecting Nigeria’s vast mangrove ecosystems, which are key to biodiversity preservation and carbon sequestration.
Edun expressed willingness to work closely with the Council to advance the climate agenda.
He urged the NCCC to present a clearly defined budget and project framework to enable swift government action and stimulate private sector participation.
Edun noted that integrating climate resilience into Nigeria’s economic blueprint was now essential for long-term development, especially in light of growing environmental vulnerabilities and shifting global investment flows.
A statement from the Federal Ministry of Finance following the meeting confirmed the government’s resolve to usher in a new era of climate resilience and sustainable development through the activation of the Climate Change Fund.
“With the Fund’s activation, the country can expect to see a surge in green investments, the creation of new jobs, and a significant reduction in carbon emissions,” the statement said.
The Climate Change Fund, as envisioned under the Climate Change Act, is expected to serve as the central pool for mobilizing and deploying resources to address the challenges of climate change in Nigeria. It will support mitigation and adaptation projects across sectors such as energy, transportation, agriculture, industry, and forestry.
With Nigeria’s vulnerability to climate impacts—ranging from desertification in the north to flooding in the coastal south—it is believed that a well-capitalised and efficiently managed Fund could be a game-changer in strengthening the country’s climate readiness.
