The World Economic Forum has said that weak investment opportunities are part of the factors affecting climate finance in Nigeria.
The WEF also said that there is a perceived need for strong public sector involvement in climate change mitigation in order to drive progress. This is according to the May 2023 Chief Economist Outlook.
In its outlook, the World Economic Forum highlighted the need for developing economies to drive progress on major national and global challenges, especially climate change mitigation and infrastructure development.
It is important to note at this point that in November 2022, Nigeria’s Vice President, Prof. Yemi Osinbajo, said Africa receives $29.5 billion annually as opposed to the $277 billion it needs for climate financing.
According to the WEF outlook, developing economies are facing a number of issues that are limiting progress and restricting investments. Some of the factors that are affecting developing economies like Nigeria include; tepid global conditions, policy uncertainty, weak investment environments and some of the highest inflation rates globally.
Chief economists at the World Economic Forum believe that cost-of-living pressures are particularly acute in some developing economies, where domestic price dynamics are exacerbated by currency depreciation.
Also, the twin pressures of deepening geopolitical tensions and intensifying industrial policy are only making things worse.
In Nigeria, the continuous depreciation of the naira as well as inflationary pressures, forex issues, policy somersaults, and a host of other in-country challenges, have made it difficult for local and foreign investors, who could help address climate change issues, to invest in the country.
