By Danjuma Amodu | February 19, 2025
Nigeria’s Federal Ministry of Environment is facing a dire situation, with a budget proposal that falls short of addressing the country’s growing environmental challenges. The ministry’s 2026 budget proposal of ₦65.9 billion is a mere drop in the ocean, considering the scale of environmental problems plaguing the country.
Today, while opening the budget defence session for the ministry and its agencies, a crucial step towards approving the 2026 budget, the Senate Committee on Environment Chairman, Olubiyi Fadeyi, decried the insufficient capital releases, highlighting oil pollution, ecological restoration, and climate recovery as urgent issues requiring immediate attention.
The committee’s concerns not withstanding, the Minister of Environment, Balarabe Abbas Lawal painted a grave picture as he alluded that capital spending in 2025 is at zero, with only ₦702 million released from a ₦41.7 billion appropriation.
A Tale of Two Countries
A comparison with South Africa, a country with a smaller population, is telling. South Africa allocates around 1.5% of its GDP to environmental protection, which translates to approximately ₦300 billion ($750 million) annually. Nigeria, on the other hand, allocates a paltry 0.3% of its GDP to environmental protection, which is roughly ₦200 billion ($500 million) annually.
The Cost of Inaction
The ministry’s focus on completing ongoing projects is a step in the right direction, but it is unclear if it is enough to address the scale of the problems. The fact that only ₦20 billion is allocated for direct mandates raises concerns about the ministry’s capacity to execute new initiatives. The consequences of inaction are dire. Climate change, deforestation, and environmental degradation are taking a toll on Nigeria’s health, economy, and national security.
A Call to Action
It is time for President Bola Ahmed Tinubu to approve a Special Intervention Fund to strengthen the ministry’s capacity and meet international climate commitments. The government must prioritize environmental funding, improve fund release mechanisms, and leverage global partnerships to access climate finance and expertise.
Nigeria’s environmental crisis is exacerbated by inadequate funding, with the Federal Ministry of Environment receiving only 4% of the $17.7 billion needed annually to address climate-related disasters. The country relies heavily on debt-based climate finance, worsening its debt burden. Corruption in ecological funds has further undermined environmental policies, leaving communities vulnerable to environmental disasters.
The government has launched initiatives, such as the Guide to Accessing Climate Finance, aiming to tap into the $2 trillion global climate economy. However, more needs to be done to address the scale of the challenges.
Harnessing Climate Finance: A Path Forward
The Nigerian Ministry of Environment has launched several initiatives to access climate finance, including the Nigerian Climate Investment Platform (NCIP), designed to mobilize up to $500 million in climate finance for infrastructure, resilience, and adaptation projects.
The Guide to Accessing Climate Finance provides a practical tool to assess the “readiness” of governments to secure and manage climate funding, outlining 33 climate finance sources and providing step-by-step strategies for advancing Public Financial Management (PFM) reform.
A $500 billion green bond issuance is planned for 2026 to support climate-related and environmental projects, focusing on renewable energy, sustainable agriculture, and climate-resilient infrastructure. The Climate Investment Platform aims to unlock $500 million in green finance for infrastructure, resilience, and adaptation projects.
Additionally, the National Climate Change Fund targets a $2 billion capitalization to back projects that cut emissions and boost resilience. The Green Growth Finance Coordinating Unit, established within the Ministry of Finance, aligns Nigeria’s fiscal policies with its climate goals and improves the quality of bankable projects.
It is time for the government to walk the talk and provide the necessary support for the environmental ministry to thrive by releasing allocated funds within the budget cycle. The future of Nigeria’s environment depends on it.
