Nigeria receives just 4% of the $17.7 billion required annually to address the escalating impacts of climate change, according to a report jointly published by Oxfam, Connected Development (CODE), and INKA Consult.
The report, unveiled on Monday, highlights a significant shortfall in climate financing, leaving the country ill-equipped to combat climate-related disasters like droughts, erosion, and rising temperatures.
“On average, Nigeria receives only $704 million annually, far below the $17.7 billion needed to adapt to climate-related challenges,” the report stated.
Between 2015 and 2021, Nigeria secured $4.9 billion in climate funding, with 75% ($3.7 billion) coming in the form of loans, further burdening the country’s debt.
The report noted, “As it stands, 36% of Nigeria’s total debt is at risk of distress, with over 37% of the national budget allocated to debt servicing, leaving little room for essential investments in climate resilience, healthcare, and education.”
John Makina, Oxfam’s Country Director in Nigeria, warned that inadequate climate financing could derail the country’s climate goals and endanger millions of lives.
“Without sustainable climate finance, Nigeria risks missing its targets and putting millions at risk,” Makina said.
“This report is a clarion call for both national and international stakeholders to prioritize climate justice and debt relief, ensuring funding translates to tangible, long-term solutions,” he added.
The report underscores Nigeria’s vulnerability as one of the world’s top ten most climate-vulnerable nations.
Augustine Okere, Lead Researcher at CODE, stressed the plight of local communities living in high-risk areas with inadequate financial and technical support.
“Local governments and climate-vulnerable communities are bearing the brunt of insufficient climate financing.
“Empowering these communities with funding and technical resources is crucial for building sustainable resilience,” Okere said.
He also highlighted challenges in tracking and managing climate funds, particularly at local levels, which hampers the efficient delivery of aid to the most affected regions.
The report advocates for an overhaul of Nigeria’s climate finance strategy, including:
“Shifting from loans to grants” to prevent exacerbating Nigeria’s debt crisis.
“Establishing a Climate Finance Hub” to centralize the tracking and management of funds, with input from government, civil society, and local communities.
“Boosting domestic funding” by integrating climate initiatives into Nigeria’s annual budget to reduce reliance on international financing.
“Empowering local governments” to access climate funds independently and implement localized resilience projects.
Hamzat Lawal, CEO of CODE, emphasized the importance of including local voices in climate action and decision-making.
“This is not just about financial investment but about trust, transparency, and equity,” he said.
James Enatace, a representative of the Nigeria Labour Congress, criticized policies that favor the wealthy and widen inequality.
“When you talk about climate finance, who sets the agenda? Policies that should fix the system are enriching the rich and worsening poverty,” he noted.
The report concludes with a call for urgent reforms to ensure climate finance aligns with Nigeria’s needs and supports the most vulnerable communities, building a more equitable and resilient future.
