Nigeria continues to face increasing pressure to balance economic development, rapid population growth, and environmental sustainability. One consequence of rising economic activity is the steady increase in greenhouse gas (“GHG”) emissions, which calls for coordinated mitigation efforts across both public and private sectors. Green finance has therefore become a strategic mechanism for directing capital toward climate-aligned projects, reflecting both domestic priorities and global momentum for sustainability and climate action.
Green finance is now central to Nigeria’s pursuit of a resilient and low-carbon economy, consistent with its Energy Transition Plan and its commitment to achieve Net-Zero emissions by 2060. In 2025, Nigeria witnessed notable progress driven by policy advancements, the issuance of green and sustainabilitythemed bonds by both public and private sectors, and increased participation from domestic and international investors. At the same time, regulatory evolution and macroeconomic challenges continue to shape the scale and pace of the market.
This article reviews the defining developments of 2025 and outlines the trends expected to influence Nigeria’s green finance landscape in 2026. It highlights regulatory shifts, market activity, and emerging opportunities that will shape the next phase of green investment in the country.
Nigeria’s Evolving Green Finance Ecosystem
Nigeria’s green finance architecture has expanded steadily over the past decade, driven by collaborative efforts among government institutions, financial regulators, and private entities.
Key milestones include Africa’s first sovereign green bond issuance by the Federal Government of Nigeria (“FGN”) in 20171, followed by multiple regulatory initiatives to institutionalise sustainability within the financial sector. Subsequently, the FGN issued a second sovereign green bond valued at ₦15 billion in June 2019, which was oversubscribed and financed 23 climate-aligned projects across multiple Nationally Determined Contribution (NDC) sectors2. Most recently, in 2025, the FGN issued a third sovereign green bond of ₦50 billion to finance renewable energy, clean transportation, sustainable water management, and climate adaptation initiatives.
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