Nigeria’s green finance sector is gaining ground, with rising adoption of Environmental, Social and Governance (ESG) standards, growth in green bond issuance, and an emergent carbon credit market, experts say.
Following Nigeria’s pioneering 2021 green bond, which raised N15 billion for renewable energy and climate projects, government agencies such as the Debt Management Office and Central Bank have introduced supportive regulations encouraging green lending and sustainable investments.
In carbon markets, Nigeria is positioning itself as an African leader, moving forward with plans to establish a national carbon registry and partnerships for accredited emissions reductions trading. These efforts aim to attract international climate finance and verify offset projects with transparency safeguards.
Finance professionals note that while Nigeria’s ESG adoption enhances investor confidence and capital mobilisation, challenges remain. These include maturing project pipelines, third-party verification mechanisms, and ensuring long-term returns for investors.
Still, sustainable finance is increasingly recognised as a critical component of Nigeria’s strategy to meet its climate commitments and deliver green economic growth.
