African financial institutions have unveiled plans to mobilise more than $100 billion for green initiatives across the continent, in a move aimed at driving sustainable economic growth and repositioning Africa in the global climate economy.
At the Africa Climate Summit in Addis Ababa, Ethiopia, the African Development Bank (AfDB), African Export-Import Bank (Afreximbank), and Ecobank Transnational Inc. announced a coordinated strategy focused on scaling up sustainable finance, harmonising regulatory frameworks, and leveraging technical expertise. The measures, they said, are designed to accelerate renewable-powered industries, expand regional value chains, and establish Africa as a global hub for sustainable trade.
The commitment comes as Africa continues to attract less than 3% of global energy investments despite holding 60% of the world’s solar potential and possessing vast untapped wind, hydro, and geothermal resources.
For Nigeria, the pledge presents opportunities to diversify its energy mix, reduce reliance on fossil fuels, and open new avenues for green industrialisation. Part of the funding is expected to support the development of large-scale solar farms and mini-grids to improve electricity access for rural and underserved communities. Investment prospects also extend to clean transport initiatives such as compressed natural gas (CNG) and electric vehicle infrastructure, which align with the Federal Government’s ongoing push for alternative fuels.
Beyond energy and transport, the financing could strengthen green manufacturing and value chains, particularly in processing battery minerals and renewable technologies. Climate-resilient agriculture projects also stand to benefit, with the potential to enhance food security, reduce emissions, and promote sustainable farming practices.
The initiative aligns with Nigeria’s Energy Transition Plan (ETP), which targets net-zero emissions by 2060 while ensuring universal energy access. In June, the Federal Government launched its N50 billion Series 3 Sovereign Green Bond to fund renewable energy, clean transportation, sustainable water management, and climate change adaptation projects.
In January, President Bola Ahmed Tinubu appealed to global investors during the 2025 Abu Dhabi Sustainability Week to partner with Nigeria in financing green energy initiatives and sustainable development projects. He reaffirmed his administration’s commitment to providing an enabling environment for investment, underscoring Nigeria’s role in pioneering green project financing in Africa.
