Climate finance experts assert that Nigeria and other African countries hold the potential to attract trillions of naira from the climate finance market through the implementation of effective structures and policies.
These experts highlighted the significance of climate finance, which encompasses financing at local, national, or transnational levels from various sources to support actions addressing climate change mitigation and adaptation.
The Chief Executive Officer of PUTRRU, Ms. Monica Maduekwe, speaking on Thursday in Abuja, a leading platform facilitating interactions between Development Finance Institutions (DFIs) and the energy sector in Africa, stressed the crucial role of appropriate policies and strategies in increasing climate finance inflows to Nigeria and the continent.
Maduekwe said that the existing shortfall in climate finance to inadequate policies “As the world grapples with the urgency of climate action, the spotlight is once again on global efforts to finance renewable energy projects, particularly in developing nations like Nigeria.”
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Maduekwe referred to discussions at COP28, where experts convened to address the widening gap between pledged climate financing and actual inflows, particularly for countries like Nigeria grappling with climate change impacts.
“Despite the global renewable energy sector attracting approximately $3 trillion in investments over the past two decades, Africa received only two percent of these investments, as highlighted by Mr. Akinwumi Adesina, President of the African Development Bank (AfDB).”
“One of the key challenges identified at the macro level is the scarcity of capital, because, in the global landscape, capital tends to flow to certain regions, favouring Latin America and Southeast Asia, while Africa lags.
“A successful project development requires a thorough study of investment opportunities, risk identification and mitigation, clear partnerships (both public and private), and a well-defined financial structure,” she said.
Also speaking from the National Action Committee on the Africa Continental Free Trade Area (NAC-AfCFTA) Mrs. Amie Alex-Irobi said that Nigeria’s industrialisation would need huge capital and hoped that climate finance would be attracted into the economic sectors to realise the objectives of Nigeria in the AfCFTA.
Alex-Irobi said that NAC-AfCFTA’s mission is to bolster economic sectors in Nigeria, particularly in ensuring available, reliable, and affordable energy, aligned with the strategy of PUTTRU in trade and investment facilitation.
