A recent report has highlighted that Nigeria is only receiving 4% of the $17.7 billion needed annually to address the impacts of climate change. The joint report from Oxfam, Connected Development, and INKA Consult revealed this concerning gap in climate finance required to tackle climate-related disasters like droughts, erosion, and rising temperatures.
Between 2015 and 2021, Nigeria received $4.9 billion in climate funding, with 75% of this amount coming in the form of loans, leading to a heavier debt burden for the nation. The report emphasized that a significant portion of Nigeria’s total debt is at risk of distress, with a large percentage of the national budget allocated to debt servicing, leaving limited resources for essential investments in climate resilience, healthcare, and education.
Without adequate and sustainable climate finance, Nigeria is at risk of missing its climate targets and endangering millions of lives. The report serves as a call to action for both national and international stakeholders to prioritize climate justice and debt relief for Nigeria, ensuring that funding translates into tangible and lasting climate solutions on the ground.
Nigeria is recognized as one of the top ten most climate-vulnerable nations globally. Many Nigerians reside in high-risk areas where climate impacts are escalating, and local governments and climate-vulnerable communities are bearing the brunt of insufficient climate financing.
Efforts are needed to empower local communities to manage their climate resilience effectively. The report also emphasizes the necessity for improved tracking and mapping of climate budgets at the local level to ensure that funds reach the most affected communities.
Reforms in Nigeria’s climate finance strategy are essential, including shifting from concessional loans to grants, establishing a Climate Finance Hub for better fund management, and empowering local governments to access and implement climate funds independently. It is crucial to involve local voices in climate finance management to ensure transparency, trust, and equity in decision-making processes.
Concerns have been raised about current policies that shape climate finance in the country, with a call to question and change a system that often benefits the wealthy while exacerbating inequality.