Nigeria receives only 4% of needed climate finance annually – Report

A new report has revealed that Nigeria receives only 4 per cent ($704m) of the $17.7bn it needs annually to address the impacts of climate change.

The report jointly published by Oxfam, Connected Development and INKA Consult was unveiled on Monday.

The report highlighted the gap in climate finance needed to help the country combat growing climate-related disasters such as droughts, erosion, and rising temperatures.

“On average, Nigeria receives only 4 per cent ($704m) of the $17.7bn it needs each year to adapt to the growing number of climate-related disasters it faces,” it said.

According to the findings, between 2015 and 2021, Nigeria received a total of $4.9bn in climate funding, of which 75 per cent of this amount ($3.7bn) came in the form of loans, “worsening the nation’s debt burden.”

It added that “as it stands, 36 per cent of Nigeria’s total debt is at risk of distress, with over 37 per cent of the national budget currently allocated to debt servicing, leaving little room for essential investments in climate resilience, healthcare, and education.”

Country Director for Oxfam in Nigeria John Makina said, “Without adequate and sustainable climate finance, Nigeria risks missing its climate targets and putting millions of lives at risk.”

“This report serves as a clarion call to both national and international stakeholders to prioritize climate justice and debt relief for Nigeria, ensuring that funding translates to tangible and long-term climate solutions on the ground,” he added.

The report highlighted Nigeria’s vulnerability as one of the top ten most climate-vulnerable nations in the world.

Lead Researcher at Connected Development Augustine Okere noted that many Nigerians live in high-risk areas where climate impacts are escalating, and the country’s local governments and climate-vulnerable communities bear the brunt of insufficient climate financing.

“Local communities must be empowered to manage their own climate resilience,” he said.

“With greater transparency and targeted funding, communities on the front lines of climate change can build sustainable resilience. Without this, Nigeria risks a downward spiral of climate-induced poverty and displacement,” he added.

One of the report’s key findings is the lack of effective tracking and mapping of climate budgets at the local level.

He said this made it difficult to ensure that funds are reaching the communities most affected by climate change.

He added that sub-national governments also struggle with a lack of technical capacity and financial resources to implement climate projects effectively.

The report called for immediate reforms to Nigeria’s climate finance strategy.

Among the recommendations are increased grants for climate action to shift from concessional loans to grants to prevent further exacerbation of Nigeria’s debt.

It also proposed the establishment of a Climate Finance Hub to create a centralised platform for tracking and managing climate funds with input from government, civil society organisations, and local communities, boosting domestic funding mapping to integrate climate initiatives into Nigeria’s annual budget to reduce reliance on international funding and prioritise community-focused adaptation projects.

It further recommended that local governments should be empowered to build their capacity to independently access climate funds and implement localised climate resilience projects.

Chief Executive Officer of Connected Development, Hamzat Lawal stressed the urgency of reforming the system to ensure that local voices are heard in climate finance management.

“We need greater involvement of local communities in climate action and decision-making. This is not just a matter of financial investment but also a matter of trust, transparency, and equity,” he said.

A representative of the Nigeria Labour Congress, James Enatace also voiced concerns about the policies that shape climate finance in the country.

He emphasised that the current system often benefits the wealthy and exacerbates inequality.

“When you talk about climate finance, who sets the agenda? Who designs the policies that drive the process? Policies that ought to fix the system are enriching the rich and making the poor poorer. We need to question this system and strive for change,” he said.