FG Explores Innovative Financing Options To Combat Climate Change

The minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the Ministry is actively fostering an environment conducive to innovative financing solutions to combat climate change and drive sustainable development.

He stated this at the Africa Social Impact Summit 2025 held in Lagos with the theme, ‘Scaling Action: Bold Solutions for Climate Resilience and Policy Innovation’.

Represented by special assistant, Bolaji Onalaja, emphasised that “we are at a pivotal moment where the increasing challenges posed by climate change intersect with the potential for innovation, collaboration, and meaningful progress.

“The impacts of climate change are no longer hypothetical; they are immediate, visible, and escalating. We are witnessing communities grappling with losing homes, livelihoods, and food security due to extreme weather events like floods and droughts.”

Bagudu added that the federal government is committed to advancing climate resilience, acknowledging that progress may vary across different sectors, saying that “attention is increasingly focused on initiatives like climate-smart agriculture, renewable energy solutions, and ecosystem restoration.”

He noted that “a key hurdle we face in amplifying climate solutions is the need for access to sustainable, long-term financing. Traditional funding sources alone cannot meet the scale of investment needed to enhance resilience within our communities and nationwide.

“In recognition of this challenge, the ministry is actively fostering an environment conducive to innovative financing, particularly through the development of Nigeria’s impact investment ecosystem.

“This includes initiatives to attract private capital into critical areas. Both federal and state governments must create frameworks that enable this flow of private investment. While progress is being made across the country, it reflects a shared commitment to unlocking resources that provide not just economic returns but also measurable benefits for our communities.”

The chairman of Sterling Bank, Olatunji Mayaki, emphasised the importance of today’s gathering, stating, “we come together with a unified mission: to reimagine, progress, and create a new blueprint for sustainable growth across Africa.”

He highlighted the vast potential inherent in our continent, noting, “Africa is rich in resources, talent, innovation, and imagination. However, we must also confront significant challenges that could impede our progress.”

He acknowledged that no single entity can tackle the complexities of sustainable development in isolation and that diverse expertise and resources leveraged through partnerships are essential for addressing the continent’s challenges.

CEO of Sterling One Foundation, Olapeju Ibekwe, stated, “we are here to foster multi-level and multi-sectoral partnerships for the acceleration of the Sustainable Development Goals and the African Union Agenda 2063.”

She noted that the event aims to attract impact investments into scalable solutions that provide value and drive policy advocacy, saying that “our discussions will not only transform Nigeria but the entire African continent, as our focus is on actionable outcomes.”

CEO of Sterling Bank, Abubakar Suleiman, remarked, “we effectively initiated this summit in 2021, and within a year, we successfully collaborated with the United Nations as a co-convener. This is a bold step forward.”