Your Nigerian Economist

Your Nigerian Economist

Inclusive growth lies at the heart of Nigeria's development. From macroeconomic policies to energy resources; trade to development topics, Your Nigerian Economist engages the citizenry in discussing relevant economic issues and proffers solutions towards a fairer, more developed economy.

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Five ways to provide $122 billion funding for Nigeria's green sector

Mma Amara Ekeruche

Mma Amara Ekeruche

Amara works as a Research Associate at the Centre for the Study of the Economies of Africa (CSEA). She holds a BA (First Class) in Economics.

Countries worldwide are moving away from fossil fuels. The main reason is due to carbon emission's impact on the environment and their population's health. For instance, 63 countries have committed to reducing global emissions by 50% under their new Nationally Determined Contributions (NDC) submission.

But asides from the direct environmental and health benefits of embracing cleaner energy, there are economic advantages too. In emerging countries such as Brazil, Russia, India and China, the move towards a green economy is estimated to create over 213 million jobs. In addition, it could generate $10.2 trillion in investment opportunities within green sectors. These sectors include renewable energy, green buildings, sustainable transport, including water, waste, land management.

However, Nigeria requires about $122 billion to develop green sectors and, more broadly, the Sustainable Development Goals (SDGs) from now till 2030. There's been a significant effort in raising the finance required. The government issued green bonds in 2017 and 2019—valued at ₦25.7 billion combined—used to finance projects in renewable energy, education, and afforestation sectors. But, much more finance is required. A funding gap estimated between $59 billion and $63 billion annually is needed to achieve sustainable investment in Nigeria.

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