Nigeria will require about $410 billion in additional investment by 2060 to achieve its net-zero emissions pathway, Vice-President Kashim Shettima has said.
Shettima disclosed this at the second edition of the Decarbonising Infrastructure in Nigeria (DIN) Summit held at the United Nations House in Abuja.
The summit was organised by the Office of the Vice-President in collaboration with the National Council on Climate Change and the United Nations Industrial Development Organisation (UNIDO).
The event, themed “De-risking Green Infrastructure Investment in Nigeria: Enabling Policy, Project Readiness and Risk-Sharing Solutions,” focused on strategies for attracting investment into Nigeria’s green infrastructure and energy transition.
Represented by his Deputy Chief of Staff, Ibrahim Hadejia, the Vice-President said the scale of the country’s financing requirement also presented a significant opportunity for both local and international investors.
According to Shettima, Nigeria’s energy transition plan estimates that approximately $410 billion in additional investment beyond business-as-usual spending will be required through 2060 to achieve the country’s net-zero target.
He stressed that the government alone would not be able to provide the capital required to finance Nigeria’s long-term energy and infrastructure needs.
Shettima therefore called for greater participation from the private sector, development finance institutions, domestic financial institutions and institutional investors.
He also emphasised the importance of developing projects that are properly prepared and capable of attracting financing.
The Vice-President said the major challenge was no longer simply the absence of climate policies or ambitions but the ability to transform those policies into viable projects that investors could properly evaluate, finance and implement.
He identified clear government policies, credible revenue models, adequate technical preparation and well-defined risk-sharing arrangements as important factors investors consider before committing funds.
Shettima also said Nigeria’s Nationally Determined Contribution 3.0 (NDC 3.0) recognises the need to develop a stronger pipeline of investment-ready projects, increase private-sector participation and improve access to climate financing.
NIGERIA FACES $27.2BN ANNUAL CLIMATE FINANCING GAP
Philbert Johnson, UNIDO’s Sub-Regional Representative for Nigeria and ECOWAS, said Nigeria’s physical infrastructure investment needs could reach about $3 trillion by 2050.
He said climate finance flows into the country averaged only about $2.5 billion annually in 2021 and 2022, compared with an estimated annual requirement of $29.7 billion.
This, he noted, leaves an estimated annual financing gap of approximately $27.2 billion.
Johnson identified policy and regulatory uncertainty, fragmented approval procedures, unclear institutional responsibilities and undefined revenue or offtake arrangements as some of the factors making it difficult for green infrastructure projects to secure financing.
He explained that projects across the country were at different stages of development, ranging from early concepts requiring feasibility studies to projects already prepared to seek financing.
Johnson called for the effective implementation of the Climate Change Act and greater certainty around power purchase agreements as measures that could help unlock carbon finance in Nigeria and across Africa.
He added that UNIDO would support project development through its Computer Model for Feasibility Analysis and Reporting (COMFAR) software and Digital Investment Promotion platform.
According to him, the tools are already being used by more than 11,000 practitioners across 160 countries.
GOVERNMENT SEEKS TO TURN GREEN PROJECTS INTO INVESTMENT OPPORTUNITIES
Musaddiq Adamu, Personal Assistant to the President on Subnational Infrastructure, said the DIN Summit was designed to address the practical challenge of moving green infrastructure projects from concepts to investment-ready opportunities.
He said pre-summit workshops had been held across key sectors, including energy, transport, urban development and agriculture.
Adamu recalled that the inaugural summit attracted more than 400 stakeholders and resulted in the development of a green infrastructure investment pipeline and a policy communiqué.
He cited the electrification of port operations as one of the outcomes of the initiative.
According to him, discussions that followed a presentation by APM Terminals at the 2025 summit contributed to a $60 million agreement with the Nigerian Ports Authority.
He also said Onne Port is being positioned to become Nigeria’s first green port.
Adamu stressed that the objective of the summit was not simply to facilitate discussions but to generate concrete investment opportunities.
GREEN INFRASTRUCTURE COULD CREATE OVER 300,000 JOBS
Tenioye Majekodunmi, Director-General of the National Council on Climate Change, said the development of green infrastructure could create more than 300,000 jobs in Nigeria.
The summit therefore brought together government officials, investors, development institutions and other stakeholders to explore ways of reducing investment risks and creating an environment capable of attracting the capital required for Nigeria’s energy transition.
The Federal Government’s strategy centres on strengthening partnerships with private investors and development institutions while improving the preparation and financing structure of green infrastructure projects.
The proposed investments are expected to support Nigeria’s transition towards cleaner energy and more climate-resilient infrastructure while contributing to broader economic development.
