$17.7b climate funding gap worsens inequality in Nigeria — Oxfam

A new report by Connected Development (CODE), INKA Consult, and Oxfam reveals that Nigeria receives only 4% ($704 million) of the $17.7 billion it requires annually to address worsening climate-related disasters.

Oxfam’s report also highlights the alarming surge in inequality in Nigeria, revealing that while the wealth of the richest continues to grow exponentially, millions of citizens remain trapped in poverty.

The Chief Executive of Connected Development (CODE), Hamzat Lawal, disclosed this in Abuja during the presentation of the “State of Climate Finance in Nigeria” reports, and also underscored the alarming growth of wealth inequality.

Lawal noted that in 2024, global billionaires amassed $2 trillion, three times faster than the previous year.

He said: “In Nigeria, the wealth gap has reached alarming levels, with four billionaires controlling $2.7 billion, enough to cover Lagos in N5,500 notes.”

The report outlines Nigeria’s escalating debt burden, with 75% of the $4.9 billion in climate finance received between 2015 and 2021 coming as loans. This contributes to 36% of the nation’s total debt burden, while 37% of the national budget is allocated to debt servicing. The resulting financial strain limits resources for critical sectors such as healthcare, education, and climate resilience.

In his remarks, the Country Director of Oxfam in Nigeria, John Makina, warned that without adequate and sustainable climate finance, Nigeria faces the risk of missing its climate targets and endangering millions of lives.

He said: “This report serves as a clarion call to both national and international stakeholders to prioritize climate justice and debt relief for Nigeria, ensuring that funding translates to tangible and long-term climate solutions on the ground.

“Nigeria is among the ten most climate-vulnerable nations globally, and many Nigerians live in high-risk areas where climate impacts such as erosion, drought, and rising temperatures are becoming increasingly severe.”

Also speaking at the event, the Lead Researcher at Connected Development, Augustine Okere, emphasized, “With greater transparency and targeted funding, communities on the front lines of climate change can build sustainable resilience. Without this, Nigeria risks a downward spiral of climate-induced poverty and displacement.”

He called for immediate reforms to Nigeria’s climate finance strategy, emphasizing that international donors and domestic policies must align to prioritize equitable, transparent, and impactful funding.

Speakers, including Tengi George Okoli of the Natural Resource Governance Institute, stressed the need for sustainable financing, adding that, “Nigeria spends nearly half its national budget on debt repayments. We must focus on grants and sustainable financing.”

Okoli highlighted the disparity in climate investments, where oil-dependent states face severe vulnerabilities.

Okoli called for better fiscal tracking and inclusive governance to ensure climate finance reaches marginalized communities.

Other contributors, such as Comrade James Enatace of the Nigeria Labour Congress (NLC) and Ifeoma Malo of Clean Tech Hub, highlighted systemic inequality and the overreliance on the financial sector.

Malo urged citizens and civil society to hold policymakers accountable and push for fair economic policies to ensure climate resilience and equity.

According to the report, Nigeria’s local governments and climate-vulnerable communities bear the brunt of inadequate climate financing. Without effective mapping and tracking of climate budgets, it’s difficult to determine what portion of climate funds or projects reach these frontline communities.

The report highlights the challenges associated with the involvement of communities in climate finance management, which includes access to data and clarity on types of projects as well as the source of financing (either domestic or international).

Adding, “Sub-national governments often lack both the technical capacity and funding to implement their own climate initiatives, further widening the gap.”