By Faridat Salifu
Climate finance experts are optimistic about Nigeria’s potential to attract trillions of naira from the climate finance market through proper structures and policies.
As reported by News Agency of Nigeria (NAN), these experts emphasized the importance of local, national, and transnational financing to support mitigation and adaptation actions against climate change.
Monica Maduekwe, the CEO of PUTRRU, Africa’s leading platform linking Development Finance Institutions and the energy market on the continent, highlighted the critical role of sound policies in driving more climate finance to Nigeria and Africa.
Maduekwe underscored the impact of poor policies as a barrier to accessing climate finance, particularly for renewable energy projects.
Despite global efforts to finance renewable energy projects, including discussions at the recent COP28, there remains a significant gap between pledged climate financing and actual inflows in countries like Nigeria.
Maduekwe pointed out the substantial investments of around 3 trillion dollars in the global renewable energy sector over the past two decades, with Africa receiving only a marginal two percent share, as noted by Akinwumi Adesina of the African Development Bank.
The disparity in capital allocation among regions poses a challenge at the macro level, favoring Latin America and Southeast Asia over Africa.
Maduekwe emphasized the need for thorough investment opportunity assessments, risk management, robust partnerships, and a well-defined financial framework for successful project development.
Amie Alex-Irobi from the National Action Committee on the Africa Continental Free Trade Area (NAC-AfCFTA) highlighted the critical role of climate finance in supporting Nigeria’s industrialization efforts and aligning with NAC-AfCFTA’s mission to enhance economic sectors, especially in ensuring access to reliable and affordable energy.
The strategic synergy between NAC-AfCFTA and PUTRRU aims to facilitate trade and investment, with a shared goal of advancing Nigeria’s objectives within the AfCFTA.