The latest Sustainable Banking Report 2023 said $94 billion of retail investor capital could be mobilised towards climate investments in Nigeria by 2030.
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The research based on investor interest from a survey of 1,800 respondents in 10 growth markets across Asia, Africa and the Middle East, which is conducted by Standard Chartered, identifies a global potential of $3.4 trillion for climate investment, highlighting the power of individuals to combat climate change.

It said $60 billion could flow into mitigation themes – renewables, energy storage and energy efficiency, which are set to attract the most capital, while $34 billion could be mobilised towards adaptation including resilient infrastructure, the blue economy and food systems.

The survey said 95 per cent of investors in Nigeria are interested in climate investing just as 91 per cent want to increase capital flows towards climate, which is the highest among all markets surveyed.

They are mainly motivated by improving returns and making a positive impact when making such investments, it said. However, it noted, multiple barriers, which vary by investor segments, are holding the investors back from translating their interest into investment.
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The report said: “The industry needs to help investors overcome these barriers to unlock the potential of retail capital. Financial institutions, regulators, companies and individuals must make a concerted effort to establish a wider range of climate assets to drive greater retail participation.

“Asset managers and banks must also work to innovate new climate assets to match emerging investor interests, such as biodiversity and the blue economy. Financial institutions have a critical role to play in mobilising retail capital via three pillars – empowering investors with information, product customisation and outcome-based information.

“Digital and fintech solutions will play an enabling role and simplify processes for investors. The industry across the world also needs to align reporting standards and mandate minimum disclosure requirements to boost investor confidence.”

Head of the Wealth Management and Deposits Nigeria and West Africa, Lanre Olajide, said: “Financing our collective response to climate change is a critical challenge. Overall climate mitigation and adaptation face an annual funding gap of trillions of dollars. Institutional capital is often the focus when mobilising funds to bridge this gap – the scale and power of retail investor capital is a lesser-known opportunity. To overcome the current disconnect between investor interest and the scale of climate investments, the industry needs to improve access to solutions, harmonise reporting standards and measurement of impact. We continue to work closely with our clients to match their investments to their areas of interest, so they can help finance solutions for a more sustainable future.”
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