Erfahren Sie, wie das nigerianische Handelsministerium den ökologischen Wandel vorantreiben kann, indem es Industrie-, Handels- und Investitionspolitik mit Klimaschutzmaßnahmen in Einklang bringt, um eine nachhaltige und widerstandsfähige Wirtschaft zu schaffen.
Climate change represents one of the most significant challenges of the 21st century, with profound implications for economic development, environmental sustainability and social well-being. Nigeria, as Africa's most populous nation and one of its largest economies, is particularly vulnerable to the adverse effects of climate change. The country's key economic sectors—industry, trade and investment—contribute to and are affected by climate change, making the integration of climate action into these sectors imperative.
Despite Nigeria's commitments to international agreements and the enactment of national policies, there is a noticeable gap in mainstreaming climate considerations into the operations of the Federal Ministry of Industry, Trade and Investment (FMITI). This gap poses risks not only to Nigeria's environmental objectives but also to its economic competitiveness and sustainable development goals.
The central challenge addressed in this report is the limited integration of climate action into the FMITI's policies and initiatives. Specifically, the research seeks to answer the following questions:
This report aims to provide a comprehensive guide for the FMITI to:
By addressing these objectives, the report seeks to contribute to Nigeria's efforts in meeting its climate commitments while fostering economic growth and enhancing the well-being of its citizens.
Climate change poses significant risks to economic sectors worldwide, Nigeria is no exception. Understanding Nigeria's position within the global climate landscape is essential for mainstreaming climate action into the FMITI. In response to the global climate crisis, Nigeria has committed to various international agreements and organizations; this directly influences its domestic policies and strategies in industry, trade and investment.
Nigeria has been a Party to the UNFCCC since 1994, actively participating in global efforts to address climate change. The UNFCCC sets an overarching framework for intergovernmental efforts to tackle climate challenges, requiring member countries to develop and implement strategies for reducing greenhouse gas emissions and adapting to climate impacts. The Paris Agreement of 2015 is a landmark international treaty within the UNFCCC framework which aims to limit global warming to well below 2° Celsius.
Under the Paris Agreement, Nigeria has taken steps such as enacting the Climate Change Act, establishing the National Council on Climate Change to coordinate and oversee climate action and submitting its Nationally Determined Contributions (NDCs) document. This commits the country to a conditional 45% reduction in greenhouse gas emissions by 2030 (compared to business-as-usual levels) and charts a path to net zero by 20601 (see Figure 1).
The African Group of Negotiators (AGN) represents African countries in international climate negotiations under the UNFCCC. Nigeria is an active member of the AGN, influencing the group's positions and benefiting from shared resources and expertise.
The group advocates for:
The WTO plays a significant role in shaping global trade policies, including those related to environmental sustainability. As a WTO member, Nigeria participates in negotiations that influence global trade rules related to environmental goods and services. Recent WTO discussions focus on the intersection of trade and climate change, recognizing that trade policies can support or hinder environmental objectives.
Key Initiatives:
The African Union provides a platform for regional cooperation on climate change and sustainable development. Nigeria contributes to and benefits from AU initiatives by adopting regional best practices and accessing support for renewable energy projects. Collaboration within the AU enhances Nigeria's capacity to address transboundary climate issues and leverage collective bargaining power in international negotiations.
The AU's Agenda 2063 envisions "a prosperous Africa based on inclusive growth and sustainable development."
Key Initiatives:
These initiatives underscore the importance of integrating climate considerations into all economic sectors, particularly industry, trade and investment.
Nigeria's oil and gas industry has long been a key pillar of its economic and geopolitical influence, especially within Africa (Figure 2). Any significant shift away from fossil fuel dependence will not only impact the domestic economy but could also reduce Nigeria's geopolitical clout in the region. The energy transition in Nigeria faces significant challenges rooted in the political economy of the country’s oil and gas sector. Powerful elites and vested interests, who have long benefited from the wealth generated by fossil fuels, often resist policies aimed at reducing dependence on oil. Corruption within the sector further complicates efforts to shift towards renewable energy, with funds being misappropriated and reforms being delayed by those profiting from the status quo. The political influence of the oil industry also extends into policymaking, where lobbying and other forms of influence lead to policy inertia that undermines climate action. Achieving a successful energy transition will require strong political will, governance reforms and the alignment of diverse stakeholders to overcome these entrenched interests and drive forward Nigeria's sustainable energy future.
One key geopolitical risk lies in the potential reduction of Nigeria’s influence within global energy markets, particularly within the Organization of the Petroleum Exporting Countries. Nigeria's ability to leverage its oil and gas resources has provided it with significant bargaining power in international negotiations, trade agreements and regional partnerships. As the global energy landscape shifts towards renewable energy, Nigeria’s reduced involvement in fossil fuel trade could diminish its standing among fellow oil-producing nations and weaken its voice in critical discussions on energy policy and pricing.
Further, the prioritization of climate action could affect Nigeria's developmental agenda. The country still relies heavily on oil revenue for foreign exchange and budgetary stability. A sudden or poorly managed transition away from oil could exacerbate economic instability, leading to increased unemployment, reduced government revenues and heightened social tensions. For example, regions like the Niger Delta, which are heavily dependent on the oil sector for jobs and infrastructure development, could face severe economic and social challenges if alternative livelihoods and industries are not developed alongside the energy transition.
Additionally, the push for energy transition is often perceived as an imposition from Western nations, many of which are historically responsible for the bulk of greenhouse gas emissions. There is a growing sentiment among developing countries, including Nigeria, that the West's push for rapid decarbonization could hinder their own developmental progress. This perception fuels resistance to aggressive climate policies, as they are seen to disproportionately burden countries that still rely heavily on fossil fuels for their economic development.
Nigeria must navigate these global pressures while ensuring that its energy transition aligns with its national interests and developmental priorities, avoiding policies that could stifle economic growth. However, while there are risks, there are also opportunities. Nigeria can strategically position itself as a leader in Africa’s green transition, leveraging its resources and expertise to guide other African nations through similar transitions. By actively shaping Africa’s climate agenda and pursuing green energy initiatives, Nigeria can maintain and even enhance its geopolitical influence. Investment in renewable energy, green technologies and regional integration can help Nigeria pivot from being an oil-dependent nation to a green energy leader in Africa.
Climate finance is broadly divided into three categories: climate change mitigation finance, adaptation and resilience finance and loss and damages. Sources of finance range from international donors, national funding mechanisms and private sector investments, among others. Climate finance can also be packaged as loans, grants or investments. Increasingly, finance is also taking the form of loan guarantees or investment de-risking, where donor governments incentivize the participation of their private sector in climate projects in emerging or developing economies.
International donors, such as the Green Climate Fund (GCF) and Global Environment Facility (GEF), play a crucial role in providing financial support for climate-related projects in Nigeria. These funds focus on initiatives that combine economic development with climate resilience, offering substantial opportunities for industry, trade and investment sectors to transition to low-carbon pathways. National funding mechanisms, including government budget allocations and climate-specific funds, are essential for implementing domestic climate policies. However, accessing and utilizing these funds often face challenges such as bureaucratic hurdles, limited capacity and competing priorities. The private sector also contributes to climate finance through investments in green technologies and sustainable business practices. An example is Alithea Capital’s Clean Energy Fund that invests in clean energy projects and there are other similar funds in the space.2
The following are some potential benefits of integrating climate action into trade and industry in Nigeria.
Nigeria’s FMITI plays an important role in shaping policies that drive economic growth. Aligning these policies with climate objectives is crucial for ensuring that economic development is sustainable and resilient to climate impacts. The ambitious targets that Nigeria has set in its NDC necessitates significant changes in industrial practices, energy production and investment strategies.
This report explores the intersection of climate policies with Nigeria’s industry, trade and investment sectors. It provides an in-depth analysis of the current climate finance landscape, existing policies and stakeholder perspectives. By identifying challenges and barriers, the report aims to offer actionable recommendations to enhance climate resilience. The ultimate goal is to mainstream climate action into the FMITI’s policies and sector priorities, ensuring that Nigeria can achieve sustainable growth in line with its international climate commitments and national development goals.
To effectively mainstream climate action into the FMITI, it is essential to understand the interconnectedness of these three sectors within the climate change context. This conceptual framework illustrates how industry, trade and investment interact and influence each other in relation to climate action.
Industry: The sector involved in the production of goods and services, including manufacturing, energy production and resource extraction. Industries are significant contributors to greenhouse gas emissions but also hold the potential for substantial emissions reductions through the adoption of clean technologies and sustainable practices.
Trade: The exchange of goods and services across domestic and international markets. Trade policies can affect the carbon footprint of goods through regulations, tariffs and standards. Sustainable trade practices promote the exchange of environmentally friendly products and services.
Investment: The allocation of capital to generate returns, encompassing both domestic and foreign direct investments. Investment decisions influence the development and deployment of low-carbon technologies. Mobilizing green finance is crucial for funding climate-resilient infrastructure and innovation.
Industry and trade:
Trade and investment:
Investment and industry:
Sectoral differences:
Commonalities in climate action strategies:
Understanding the intricate relationships among industry, trade and investment is crucial for the FMITI to effectively mainstream climate action. By adopting an integrated approach, the ministry can develop cohesive policies that leverage the strengths of each sector while addressing their unique challenges. This framework serves as a foundation for the subsequent analysis of obstacles and the formulation of targeted recommendations to align the FMITI's operations with Nigeria's climate commitments.
The research involved a review of existing policies, legislation and strategic documents from the Federal Ministry of Industry, Trade & Investment, the Ministry of Environment and other relevant bodies. This policy analysis focused not only on content but also on the policy-making process, roles of various stakeholders and the interplay between different governmental layers.
An institutional framework review was conducted to analyze the mandate, structure and interactions of the FMITI with other government entities, private sector actors and international bodies. This helped identify potential leverage points and barriers for mainstreaming climate action within the bureaucratic system.
Stakeholder engagement included structured interviews with key informants from government ministries and agencies, focusing on those involved in policy formulation and implementation. Interviews were also conducted with non-governmental stakeholders from the private sector, donor space and civil society. The engagement strategy respected formal protocols and leveraged informal networks to facilitate open and productive dialogues. A total of 15 stakeholders were interviewed, including 7 stakeholders from the FMITI or its agencies and 8 stakeholders from other government agencies, the private sector, civil society and donor agencies.
The information gathered through desk research and stakeholder engagement was used for an integrative analysis to map out the interconnections between climate action, industry, trade and investment. This analysis informed the development of strategic, practical and actionable recommendations tailored to the complexities of the Nigerian policy-making environment.
Nigeria has established several policies to attract investments, promote trade and foster industrial growth. These policies include trade policies, investment policies and industrial development policies. Industrial development policies are both sectoral and cross-cutting. While these policies aim to create a conducive environment for economic activities, challenges such as bureaucratic bottlenecks, infrastructural deficits and policy inconsistencies hinder their effectiveness.
On the other hand, Nigeria has developed climate policies to address environmental challenges and promote sustainable development. These include the National Climate Change Policy (2021 – 2030)3, the Energy Transition Plan, the Nationally Determined Contribution, renewable energy initiatives and commitments under international agreements like the Paris Agreement, the 2021 Climate Change Act among others.
More recently, there have been a series of Presidential councils, committees and appointments linked to climate change. These include the National Council on Climate Change (NCCC), Inter-ministerial Committee on Climate Change, Intergovernmental Committee on National Carbon Market Activation Plan, Office of the Special Presidential Envoy on Climate Action4, Senior Special Assistant to the President on Climate Finance & Stakeholder Engagement, Presidential Committee on Climate Action and Green Economic Solutions, Presidential Steering Committee on Project Evergreen among others.5
However, the intersection between climate policies and economic sectors such as investment, trade and industry remain limited, highlighting the need for greater integration and coherence in policy frameworks. For instance, the 17000-word Trade Policy for Nigeria (2023 -2027) only includes less than a 100-word reference to climate issues. On the other hand, Nigeria’s draft African Continental Free Trade Area Implementation Strategy contains some discussions on environmental considerations and their link to climate change. The National Climate Policy does include sections on industry as well as some productive sectors but does not holistically address them. The policy incoherence extends to other issues, including the fact that Nigeria released its NDCs around the same time as the passing of the Petroleum Industry Act into law. These two policy documents appeared to contradict each other, with one planning for a transition away from an oil-dependent economy and another planning for state-led investment in frontier basin oil exploration (Tayo, 2021).
Within the FMITI, there is a Trade and Environment desk, as stipulated by signed WTO treaties. However, there appear to be challenges with coherence in the Nigerian government’s response to climate change, given the low levels of awareness and buy-in at the bureaucratic level. This contrasts with the seemingly high levels of interest and attention from the executive level. It is important however to recognize the knowledge and expertise gaps that sometimes exist between career bureaucrats (career civil servants) and political aides. As a result of this, policy consultations and implementation activities sometimes take place within ad-hoc arrangements with little engagement from the statutory bureaucracy.
Interviewed stakeholders within the FMITI and its parastatals all expressed a recognition of the importance of mainstreaming climate action into the Ministry’s policies and activities. They, however, also expressed that there was little institutional action or intent towards achieving this. Some interviewees reported insufficient engagement on some of the Presidential initiatives around climate change.6 It was shared that the paragraph on “Trade and Environment” that eventually made it into the revised trade policy was due to later engagement with the Federal Ministry of Environment (FME) when the issue of Environmental Impact Assessments was brought up. The process for producing the policy included 28 ministries, departments and agencies linked to trade but initially did not include any climate change expert as the process was not well resourced. The bureaucrats explained that there was insufficient capacity within the Ministry to champion climate change related issues, as many staff did not have a good understanding of the challenges and how it ought to inform their work. This lack of understanding was not only a challenge for the FMITI but also for their various stakeholders such as the National Assembly and the Ministry’s constituent parastatals.
An official of the Ministry proposed that there was a need to assess the compatibility of set climate goals with existing industrial development plans, as well as trade and investment policies. This also had to be done for sectoral plans including agriculture, energy, automotive and others. They however pointed out that there will be a need to improve the institutional framework for coordination between the different Ministries (FMITI and FME) as well as legislative support for any strategies that emerge from the collaborative deliberations. This would include issues such as Nigeria’s position and response to the EU’s CBAM.
There already exists an Enlarged National Focal Point on trade matters (ENFP), an inter-agency and inter-ministerial committee on trade issues. It was established in 2001 and is co-chaired by the Minister of Trade and the Director General of the National Office for Trade Negotiations (NOTN). The ENFP helps coordinate and makes recommendations on WTO issues as well as wider trade policy issues. It Is within this framework that the Trade and Environment desk exists, as this is required for WTO negotiations. There was also an acknowledgement that there was more capacity on climate change-related issues within the Geneva office of the FMITI, as officials there were directly involved with WTO negotiations.
Wider consultations with officials at the FMITI yielded similar findings, with some officials proposing that climate change issues had not yet been mainstreamed at the Ministry because no entity had “championed” this. Examples were given of gender mainstreaming and trade facilitation which were currently receiving generous attention and resources due to advocacy from external stakeholders. There were recommendations to secure the buy-in of the organized private sector as they had in the past proven as an effective advocate for triggering government action.
The stakeholders provided a wealth of insights on how to enhance climate action within Nigeria’s industry and trade sectors, emphasizing the critical need for a strategic and comprehensive approach. One of the primary themes was the importance of aligning economic and environmental objectives. This would involve developing a framework that ensures national economic goals, such as revenue generation from crude oil, do not conflict with the country’s climate commitments. The stakeholders noted that such alignment is crucial for creating policies that are both economically viable and environmentally sustainable.
Several stakeholders underscored the critical importance of carbon markets in aligning Nigeria’s trade and industry policies with global climate standards. Carbon markets, which facilitate the trading of carbon credits to incentivize emission reductions, were viewed as pivotal for Nigeria to integrate climate considerations into its economic practices. Stakeholders emphasized that participating in global carbon markets can provide Nigerian industries with financial incentives to adopt sustainable practices and reduce their carbon footprints.
Stakeholders also acknowledged the significant role of the FMITI in driving this transition towards a more climate-friendly industrial sector. They pointed out that the FMITI should take a proactive role in developing and enforcing policies that promote carbon reduction across all industrial activities. The ministry was seen as a crucial player in setting the regulatory framework and creating incentives for businesses to engage in carbon trading and adopt green technologies.
The discussions revealed a strong consensus on the need for a comprehensive framework to guide climate action within Nigeria’s industry. Stakeholders stressed the importance of detailed policies and strategies that align with international carbon market standards. They also highlighted the necessity for robust data collection and management systems to track the environmental and social impacts of industrial activities. Such data is vital for participating effectively in carbon markets and for demonstrating compliance with international trading standards.
Awareness and education initiatives emerged as another critical area. Stakeholders emphasized the need to build capacity within the FMITI and among other key stakeholders to understand and leverage carbon markets. This includes training industry players on how to engage in carbon trading and the benefits it can bring. Educating businesses and the public about the importance of reducing carbon emissions and participating in carbon markets was seen as essential for driving widespread adoption of sustainable practices.
PPP were identified as a key opportunity for enhancing climate action. Stakeholders suggested that the FMITI should foster collaborations with private sector players to leverage their resources and expertise in implementing climate-friendly initiatives. Such partnerships can facilitate the development and deployment of green technologies and practices, helping to reduce the carbon footprint of Nigeria’s industrial sector. Private sector actors such as the Nigerian Economic Summit Group (NESG) were playing a role in enhancing climate action and advocacy by being trusted advisors to the government.
The stakeholders also recognized the potential for accessing international climate finance through carbon markets. They pointed out that the FMITI should work to secure technical and financial support from international partners to help Nigerian industries transition to low-carbon operations. By participating in carbon markets, Nigeria can attract investments that support sustainable development and environmental conservation. In addition, an interviewee pointed out that mobilizing resources to fund research on climate mainstreaming was an example of climate finance.
In terms of opportunities, stakeholders identified several areas where Nigeria could enhance its climate action. One significant opportunity lies in developing smart agricultural technologies that improve water management and reduce emissions. Urban planning that includes more green buildings and the use of sustainable materials was also highlighted as a critical area for development. Additionally, promoting renewable energy, particularly solar power and reducing entry barriers for solar companies were seen as essential steps towards a sustainable industrial sector.
Overall, the stakeholders’ insights emphasized the need for the FMITI to have a clear and strategic approach to integrating climate considerations into trade and industry policies. They called for the ministry to lead in fostering a supportive environment for carbon markets, enhancing stakeholder engagement and ensuring that Nigeria’s industrial practices align with global climate objectives. By taking these steps, the FMITI can help position Nigeria as a proactive player in the global effort to combat climate change while driving sustainable economic growth.
There was a general alignment among stakeholders within the Ministry and those outside it on what needed to be done to mainstream climate action within the FMITI. There were, however, some differences in perspectives. As one example, a high-level government official from Nigeria’s oil and gas industry expressed a need for the FMITI to provide the industry with guidelines on “greening” oil production in the country. This suggestion was resisted by an official from the Ministry who insisted that this should not be the Ministry’s mandate but should be driven by the agency in collaboration with the Petroleum Ministry. The Petroleum Ministry could then present the recommendations to the FMITI and the FME, after which they could then seek executive and legislative support. This was one example of differing perspectives on mandates and responsibility.
Related to this was the challenge of territoriality within the Nigerian civil and public service that sometimes affects coordination and collaboration. The multitude of offices, initiatives, advisors, departments and committees on climate change issues can exacerbate this challenge due to conflicting and overlapping mandates. These challenges have been expanded further in the next section.
In examining the challenges of mainstreaming climate action into the FMITI, the analysis provided by Usman (2020) is particularly relevant. The study critically assesses how Nigeria's reliance on oil revenues has resulted in entrenched interests and institutional weaknesses that hinder economic diversification and effective policy implementation. It highlights the lack of policy coherence and coordination among key sectors like oil and gas, power and manufacturing, which exacerbates these challenges. This context underscores the necessity of addressing institutional barriers and fostering cross-sector collaboration within the FMITI's efforts to integrate climate action. By applying insights from this analysis, strategies can be developed that not only promote sustainable industrialization and trade but also align with broader economic diversification goals. Understanding the political and economic dynamics outlined in the study aids in formulating policies that are both effective and resilient against governance constraints.
Building on the insights gathered from existing policies and stakeholder interviews, the following challenges have been identified as facing the mainstreaming of climate action in the FMITI. These challenges are organized under a number of thematic areas.
A capacity assessment that was carried out in 2014 on the FMITI's Department of Trade found several weaknesses. There was a lack of sufficient capacity to effectively engage “Grade A stakeholders” for obtaining relevant inputs into trade policymaking and trade negotiations. Additionally, there was a clear deficiency in the ability to create a matching stakeholder–input/output matrix that could deliver high-quality trade policy outcomes. The department also suffered from limited knowledge of sources and the application of basic trade and related information and data. Where information and data were available, there was a lack of awareness and operational knowledge of appropriate analytical techniques. Furthermore, the capacity to prepare basic background studies and papers to inform national positions was extremely limited.
Another critical area of inadequacy was the ability to process and communicate trade information. Communication and relationships within the department were poor, with no recognizable strategy to disseminate trade information. Meetings were scarce, especially at the departmental level and there were no effective communication channels to keep staff informed. This resulted in most staff being unaware of activities outside their divisions. The operational misalignment of functions and mandates further complicated matters, with some divisions overburdened while others were underutilized. There was also no effective planning culture; staff worked in isolation, budgetary allocations were low and inadequately distributed and infrastructure and facilities, including information and communication technology (ICT) resources, were severely lacking. The physical work environment was far from conducive, leading to low staff morale and significant challenges to effective performance.
Although this assessment was carried out ten years ago, stakeholders are of the opinion that not much has changed. Challenges with the physical work environment may have contributed to the current situation where the Minister of Trade and her aides are stationed in the Bank of Industry building and not at the Ministry’s offices where the bureaucrats are.
The proposed national framework can potentially take the form of a new - and green - industrial policy for Nigeria. Nigeria’s current industrial policy is outdated and there have been ongoing efforts to develop a new one. This presents a window of opportunity to design a strategy that sufficiently incorporates existing environmental policies including international climate commitments; contextualises them to Nigeria’s trade, investment and industrial needs; sets a framework for improved coordination and collaboration across stakeholders; and sets clear goals and objectives. This recommendation encapsulates a number of the other ones that have been mentioned in this section.
The South African Department of Trade, Industry and Competition (DTIC) is actively integrating climate action into its policies and activities through various initiatives aimed at reducing greenhouse gas emissions and promoting sustainability. It has taken some actions similar to Nigeria such as:
Other initiatives include:
Despite the significant efforts by the DTIC to mainstream climate action into its policies, it was the comprehensive and coordinated national strategy that enabled South Africa to secure funding through the Just Energy Transition Partnership (JET-P). The JET-P, launched during COP26 in collaboration with international partners, represents a multifaceted approach involving not just the DTIC but also other key government departments, such as the Department of Mineral Resources and Energy and the Presidential Climate Commission. High-level political commitments, enhanced NDCs and cross-departmental collaborations were critical factors in demonstrating South Africa's readiness for a just energy transition.
The DTIC's strategic initiatives, like the development of the Green Paper on New Energy Vehicles (NEVs) and the NEV Roadmap, played a crucial role in aligning industrial and trade policies with the country's climate objectives. These efforts complemented the broader Just Energy Transition Investment Plan (JET IP) for 2023–2027,3 which outlines investment needs across sectors such as electricity, NEVs and green hydrogen. The JET IP, endorsed by South Africa's Cabinet, serves as a strategic framework to attract both international and local investment, emphasizing the necessity of a supportive policy environment.
Securing JET-P funding was a result of this collective effort, combining policy and regulatory reforms, stakeholder engagement and effective international diplomacy. While the DTIC's mainstreaming of climate considerations significantly contributed to creating an enabling environment, it was the synergy of all these elements that facilitated the successful partnership. Collaboration across various government departments, alignment with national development goals and engagement with international partners underscore the importance of a unified approach to climate action.
For Nigeria's FMITI, the South African experience illustrates the value of integrating climate action into industry and trade policies as part of a coordinated national strategy. By fostering inter-ministerial collaboration, aligning policies with national and international climate commitments and engaging with stakeholders and international partners, the FMITI can enhance its capacity to mainstream climate considerations effectively. This holistic approach can improve Nigeria's prospects of attracting international support and funding for its own just energy transition initiatives.
Source: South African Department of Trade, Industry and Competition (DTIC)
Some of the recommendations above have been condensed into this preliminary implementation framework. Several of the recommendations presented in the previous section will be contingent on the development of the national framework.
| Objective | Responsible Parties | Steps | Monitoring Mechanism | Expected Output |
|---|---|---|---|---|
| Capacity Building, Awareness and Education Initiatives | The FMITI in partnership with NCCC and NGOs | Develop training programs | Training program outlines and participation records | Enhanced understanding of climate action and link to the FMITI’s operations |
| Additional partners – Manufacturers Association of Nigeria & Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture | Launch awareness campaigns | Campaign impact assessments and feedback surveys | Increased public and stakeholder awareness – target will be organized private sector | |
| The FMITI | Establish continuous engagement channels | Stakeholder engagement logs and feedback mechanisms | Ongoing dialogue and feedback mechanisms | |
| Knowledge Exchange and Training Sessions | The FMITI supported by the WTO, UNIDO, United Nations Conference on Trade and Development, UNFCCC etc. | Set up virtual knowledge exchange sessions with better-performing trade ministries | Entry and exit surveys, number of sessions, participation records. | Catalogue of best practices and approaches for mainstreaming climate action |
| Training sessions on existing tools and guides for mainstreaming climate action in trade and industry | Entry and exit surveys, number of tools selected and adapted for use by the FMITI | Catalogue of tools available for use by the FMITI | ||
| Public-Private Finance and Investment Initiatives | The FMITI, Nigeria Sovereign Investment Authority, NIPC, NESG, Financial Institutions | Identify and develop green financial instruments, such as green bonds, low-interest loans and climate-focused funds. | Reports on financial instruments developed and uptake | Increased availability of finance for green projects through new financial instruments. |
| Establish PPP models for investment in renewable energy, sustainable infrastructure and climate-resilient agriculture. | Number of PPP agreements signed, monitoring reports | Enhanced public-private collaboration resulting in increased investments in climate-friendly projects and initiatives. | ||
| Leverage existing climate finance mechanisms, such as the GCF and other international funds, to support national initiatives. | Funds secured, project impact assessments | Effective utilization of international climate finance to support Nigeria's energy transition and climate action goals. | ||
| National Framework and Strategy Development / Green Industrial Policy Development | The FMITI, FME, FMF, NCCC, private sector stakeholders, Presidency | Establish a multistakeholder committee | Regular committee meetings and progress reports | A dedicated committee to develop and oversee industry, trade and investment related climate strategies |
| Develop the national framework | Quarterly progress reviews and draft assessments | A comprehensive document outlining climate action strategies and policies and roles of agencies | ||
| Approval and dissemination | Approval by relevant authorities and dissemination tracking | Officially approved and widely distributed framework | ||
| Policy Enforcement and Compliance Incentivization | The FMITI, anti-corruption agencies, law enforcement | Enhance monitoring and evaluation frameworks | Established monitoring frameworks and regular audits | Effective frameworks for policy enforcement |
| Incentivize compliance | Compliance incentive programs and evaluation reports | Increased compliance with climate policies | ||
| Monitoring and Evaluation | The FMITI, independent auditors, stakeholder representatives | Establish monitoring framework | Monitoring framework documents and implementation plans | A structured system for tracking progress |
| Conduct regular evaluations | Regular evaluation reports and feedback sessions | Regular reports on progress and areas for improvement | ||
| Feedback and adjustments | Feedback collection and action plans | Continuous improvement in climate action integration |
This report underscores the urgent need for mainstreaming climate action into Nigeria’s trade ministry. Given Nigeria's status as one of Africa’s largest economies, integrating climate considerations into industry, trade and investment policies is critical for fostering sustainable economic development and ensuring resilience against climate impacts.
The findings highlight significant challenges, including the misalignment of economic and environmental goals, infrastructure deficits, financial barriers and gaps in capacity and awareness. Despite these challenges, there are substantial opportunities for the FMITI to lead Nigeria’s transition to a green economy. Leveraging international climate finance, fostering public-private partnerships and developing a comprehensive national framework are pivotal steps in this direction.
By implementing the recommended strategies, the FMITI can enhance policy coherence, strengthen enforcement mechanisms and build the necessary capacity to drive climate action. Initiatives such as promoting renewable energy, improving transportation networks and supporting green industries will be crucial in reducing the carbon footprint of Nigeria’s industrial and trade activities.
Furthermore, the collaboration between various government entities, the private sector and international partners will be essential for the successful implementation of these strategies. Continuous stakeholder engagement, capacity building and the adoption of best practices from other countries can provide valuable insights and facilitate the transition to a sustainable and resilient economy.
In conclusion, mainstreaming climate action into the FMITI’s operations is not only a necessity for mitigating climate risks but also an opportunity to achieve sustainable growth and enhance Nigeria’s global competitiveness. By taking decisive action and fostering a collaborative approach, the FMITI can play a pivotal role in steering Nigeria towards a greener and more prosperous future.
fDI Intelligence. (2023). COP28: three FDI charts to grasp the tension between renewables and fossil fuels. Retrieved from https://www.fdiintelligence.com/content/data-trends/cop28-three-fdi-charts-to-grasp-the-tension-between-renewables-and-fossil-fuels-83244
IEA. (2022). How much CO2 do countries in Africa emit? International Energy Agency. Retrieved from //www.iea.org/regions/africa/emissions
Tayo, T. T. (2021). Nigeria’s north needs jobs, not oil. Institute for Security Studies. Retrieved from https://issafrica.org/iss-today/nigerias-north-needs-jobs-not-oil
Usman, Z. (2020). Economic Diversification in Nigeria: The Politics of Building a Post-Oil Economy. Carnegie Endowment for International Peace.
WTO. (2021). World Trade Report 2021: Economic resilience and trade. World Trade Organization.
[1] https://climatechange.gov.ng/wp-content/uploads/2021/08/NDC_File-Amended-_11222.Pdf
[2] https://thealitheia.com/alitheia-clean-energy-fund/
[3] https://climatechange.gov.ng/wp-content/uploads/2021/08/NCCP_NIGERIA_REVISED_2-JUNE-2021.pdf
[4] https://statehouse.gov.ng/news/president-tinubu-approves-mandate-for-office-of-the-special-presidential-envoy-on-climate-action-expands-green-economy-committee-membership/
[5] https://statehouse.gov.ng/news/president-tinubu-approves-new-leadership-for-national-council-on-climate-change/
[6] Important again to note that government officials and departments sometimes work in silos with poor diffusion of information across the institution.
Teniola Tayo is a policy advisor with expertise in trade, investment and global geopolitics. Teni has led and contributed to policy research initiatives for partners across Africa, Europe, and the US, including the Nigerian government's Office for Strategic Preparedness and Resilience, the United Nations Development Programme, the World Bank, the Institute for Security Studies and the Africa Policy Research Institute.
