In a future within reach, Lagos could emerge as the epicentre of West Africa’s climate-resilient transformation, where solar-powered schools illuminate underserved communities, flood-defence housing secures coastal lives, and hybrid transport systems reduce emissions across sprawling megacities.

But that vision, however compelling, is not guaranteed. It demands bold choices. And the time to make them is now.

As Africa confronts an annual climate adaptation financing gap projected to reach $100 billion by 2030, Nigeria, the continent’s most populous nation and its largest economy, finds itself at a critical inflexion point. The intersection of worsening climate impacts, underutilised domestic capital, and an urgent need for globally aligned standards is giving rise to what some experts are calling Nigeria’s green capital moment.

At the 2024 Annual Meetings of the African Development Bank (AfDB), Agama Emom, Nigeria’s director general of the Securities and Exchange Commission (SEC), delivered a message that reverberated beyond the conference halls: Nigeria has adopted the International Sustainability Standards Board (ISSB) sustainability standards, becoming one of the first African nations to do so.

The ISSB’s International Financial Reporting Standards (IFRS) S1 and S2 standards, developed under the IFRS Foundation, establish a global baseline for sustainability and climate-related financial disclosures. They offer clarity, comparability, and confidence, three attributes international investors consider non-negotiable.

“Africa bears the brunt of climate change, despite contributing less than 4% to global emissions,” Emom said. “We need $3 trillion by 2030 to mitigate and adapt, and our capital markets must be part of the solution.”

This adoption is more than symbolic. It is a strategic shift that positions Nigeria to unlock billions in sustainable capital, build investor confidence, and accelerate the green transformation of its economy.

The implications are profound: climate finance is no longer a sidecar to development; it is the engine. It drives infrastructure, innovation, job creation, and inclusive growth.

“We already have over $4.4 trillion in mobilisable domestic capital across Africa,” says Godson Ikiebey, senior manager for ESG, Sustainability and Climate Change at PwC Nigeria. “But we’ve barely scratched the surface.”

In Nigeria alone, over ₦28 trillion (approximately $18 billion) sits in pension funds, yet less than 1% is allocated to infrastructure, and even less to climate-aligned investments. Meanwhile, floods in the South, desertification in the North, and supply shocks across the country are compounding both humanitarian and economic losses.

However, the gap is not in capital, it is in confidence. And the bridge is credibility.

Nigeria was a pioneer in the region, issuing sub-Saharan Africa’s first sovereign green bond in 2017. Proceeds went to afforestation and solar-powered educational facilities. The initiative was both practical and symbolic: a low-emission economy is not an abstract goal; it is a national necessity.

Since then, the Nigerian Exchange Group (NGX) has introduced a dedicated Green Bond Market, and private sector issuers, from banks to renewable energy companies, have joined the fold. Green bonds have been floated to support solar energy, mini-grids, flood control systems, and more.

Nevertheless, the scale remains insufficient.

Nigeria’s Development Finance Institutions (DFIs) are beginning to tap into the Green Climate Fund (GCF), a global climate finance pool exceeding $15 billion. One DFI has already secured $250 million. But most local institutions are still unable to meet the rigorous criteria required for regular access.

The reason is clear: in today’s financial ecosystem, sustainability disclosures are only as strong as the systems they reveal.

While many organisations see sustainability reporting as an endpoint, it is the result of something more foundational: implementation.

“Public disclosure may communicate performance, but only robust implementation attracts capital,” Ikiebey explains.

Implementation means more than policies and PDFs. It means:

Tracking and managing material environmental, social and governance (ESG) risks and opportunities.

Embedding sustainability into enterprise governance and operations.

Creating internal systems and culture that prioritise long-term value creation over short-term optics.

The ISSB standards reinforce this philosophy. They require disclosure that is material, decision-useful, and integrated into strategy. This approach shifts sustainability from a compliance function to a strategic driver.

Global capital is undergoing a quiet revolution. ESG considerations now shape how over $40 trillion in assets are managed worldwide. Countries that align with recognised disclosure norms, like the ISSB standards, are rewarded. Those that don’t face increasing capital costs or outright exclusion.

Vietnam, through its harmonisation with international climate finance standards, is quickly becoming Southeast Asia’s clean energy hub.

South Africa secured $8.5 billion in concessional funding for its Just Energy Transition Plan, thanks to clear policies, robust institutions, and global alignment.

Nigeria is poised to do more. Its solar potential is among the highest globally, its fintech sector is agile and youth-led, and its agricultural transformation could feed the continent. But without institutional readiness, this potential remains untapped.

Nigeria’s Energy Transition Plan (ETP) estimates the country will need $1.9 trillion in sustainable financing by 2060 to lift 100 million people out of poverty and transition to a low-carbon economy. That scale of ambition demands:

Blended finance strategies that de-risk projects and crowd in private capital.

Institutional capabilities to meet the due diligence expectations of international funders.

Domestic capital mobilisation, especially from pension and insurance funds, into ESG-compliant infrastructure, clean energy, and climate-smart agriculture;

And critically, trust is built through credible, ISSB-aligned disclosures.

Nigeria’s green capital moment will be defined not by declarations, but by actions. The path forward must include:

Full integration of ISSB standards into regulatory frameworks, listed companies, and financial institutions.

Pipeline development for climate-aligned projects, including technical support and investor matchmaking.

De-risking instruments and policy clarity to attract both concessional and commercial financing.

Capacity-building for public and private actors to implement and monitor sustainability strategies.

Multi-sector collaboration that brings together finance, energy, tech, agriculture, manufacturing, transport, and gender-aligned initiatives into one coordinated national effort.

Sustainability has become the currency of 21st-century competitiveness. It is what global investors look for. It is what regulators are enforcing. And increasingly, it is what communities demand.

If Nigeria embraces this moment, with clarity, credibility, and coordination, it won’t just attract climate finance. It will define the blueprint for green economic leadership on the continent.

This is no longer a question of whether Nigeria will transition. The question is: will it lead, or be left behind?

Because in this green capital moment, sustainability is not just good for the planet. It is good business. It is national security. And it is a smart strategy.

If Nigeria gets it right, it won’t just finance its future. It will own it.