Reps back proposal for Nigeria’s first Green, Climate Finance Bank

2026-03-04 - 14:47

By Gift Chapi Odekina, Abuja The Chairman of the House Committee on Renewable Energy, Hon. Afam Victor Ogene, has endorsed a proposal to establish Nigeria’s first dedicated Green and Climate Finance Bank, describing the initiative as timely and crucial to unlocking the country’s estimated $104 billion climate investment potential. Speaking at a press briefing alongside promoters of the proposed institution, Ogene said the initiative aligns with the Federal Government’s renewable energy agenda and Nigeria’s commitments under the Paris Agreement. “We are gathered here to introduce an innovative and important initiative — the establishment of Nigeria’s first dedicated green and climate finance bank,” he said. Citing data from the International Finance Corporation, Ogene noted that Nigeria has an estimated $104 billion in climate-smart investment opportunities by 2030 but faces a significant financing gap in achieving its energy transition and climate targets. “The question before us is simple: how do we unlock this opportunity? The answer, to my mind, is finance,” he stated. He explained that traditional commercial banks often struggle to provide long-term, affordable capital for renewable energy and climate projects due to perceived risks and structural limitations in their business models. As a result, many renewable energy developers and green entrepreneurs are unable to access affordable funding. Ogene clarified that the proposed bank would be privately driven, not government-owned, with strong governance standards aligned to global environmental, social and transparency frameworks. He added that the promoters have developed a business plan and stakeholder engagement roadmap. He called on development partners, sovereign investors, pension funds and institutional investors to support the initiative, stressing that Nigeria’s green transition is inevitable and the country must position itself to lead. Providing further details, co-founder of Quantum Partners Investments Limited, Mr. Oluwafemi Adedipe, said the Green and Climate Finance Bank is designed to mobilise capital at scale for Nigeria’s transition to a low-carbon economy. He noted that while Nigeria is one of the most climate-vulnerable countries globally, it also represents a major green investment frontier, with opportunities in renewable energy, climate-smart agriculture, green infrastructure and circular economy ventures. His partner, Dr. Samuel Ndubisi-Brown, disclosed that the promoters are raising $100 million in initial capital to secure regulatory approvals, establish digital infrastructure and commence operations. He projected a first-quarter 2027 operational timeline, subject to approval from the Central Bank of Nigeria. Responding to questions, the promoters said the bank would primarily target small and medium enterprises (SMEs), renewable energy developers and climate-focused businesses, rather than large corporates. They explained that, unlike climate funds, the proposed bank would be regulated and capable of directly lending to private businesses, including mini-grid developers and other green enterprises. Beyond profitability, the promoters said the initiative is aimed at building local institutional capacity to finance Nigeria’s climate transition through a homegrown platform capable of attracting both international investors and supporting local entrepreneurs. They concluded that sustainable finance represents the future of banking and described climate action not only as an urgent necessity but also as a major structural investment opportunity for the country.