Nigeria stands at a critical crossroads. Despite holding some of the world’s largest oil and gas reserves, the country faces a growing climate finance gap, declining revenues, and increasing vulnerability to climate change. While fossil fuels contribute significantly to national income, they also account for major greenhouse gas emissions, placing Nigeria among the world’s top climate-impacted countries.
As global divestments from oil accelerate and climate risks intensify, Nigeria must urgently reform its extractive sector and strengthen domestic resource mobilization. This report examines the country’s fiscal frameworks, the challenges of balancing net-zero commitments with economic dependence on fossil fuels, and the untapped opportunities in solid minerals and transition minerals.
It highlights innovative climate finance options, such as carbon pricing, green bonds, climate risk insurance, emission trading systems, and debt-for-climate swaps, that can help bridge Nigeria’s annual USD 27.2 billion climate finance gap. The report concludes with actionable recommendations for policy implementation and stronger governance to unlock sustainable development financing.