Nigeria is actively seeking funding from the Islamic Development Bank (ISDB) to accelerate the development of critical renewable energy projects, including solar power plants, methanol production facilities, and green hydrogen initiatives. This ambitious push towards sustainable energy aligns with the nation’s commitment to diversifying its energy sources and addressing the pressing challenges of climate change.
The drive for international collaboration was evident during a recent meeting between the Director General of the Energy Commission of Nigeria (ECN), Mustapha Abdullahi, and the Honourable Minister of Innovation, Science, and Technology, Geoffrey Uche Nnaji, with an ISDB delegation.
“Financing these capital-intensive projects requires a diverse approach, including bonds, grants, and equity participation,” emphasised Abdullahi. “We need significant investment to accelerate this energy transition, and innovative funding mechanisms are crucial to make these initiatives a reality.”
The meeting focused on securing critical climate finance to support projects such as the Clean Cooking Policy, a proposed solar photovoltaic (PV) plant, and the establishment of methanol and green hydrogen plants.
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Nnaji highlighted the transformative potential of the clean cooking initiative, emphasising its positive impact on public health, particularly for women and children who are disproportionately affected by traditional cooking methods. “Swift progress in commercialising clean cooking solutions is paramount,” he stated.
Hammad Hundai, head of the ISDB delegation, expressed the Bank’s strong commitment to supporting Nigeria’s energy transition. “The ISDB is fully supportive of these proposed projects and will work closely with the Energy Commission and the Ministry of Innovation, Science, and Technology to explore viable financial pathways,” he assured.
This pursuit of international cooperation echoes the sentiments expressed by President Bola Tinubu at the recent 2025 Abu Dhabi Sustainability Week (ADSW). “Nigeria became the first country in Africa to initiate funding of green projects through Sovereign Green Bond proceeds,” President Tinubu stated. “We urge investors to partner with us in this regard. Our administration remains committed to providing an enabling environment for businesses to thrive in Nigeria.”
Nigeria’s green finance journey began in 2017 with the issuance of its first-ever Sovereign Green Bond, a pioneering move within Africa. This initiative aimed to raise approximately 10 billion Naira (about 28 million USD) to fund environmentally sustainable projects.
The current push for renewable energy projects signifies a significant step forward in Nigeria’s efforts to achieve energy security, combat climate change, and foster sustainable economic growth. By leveraging international partnerships and exploring innovative funding mechanisms, the nation aims to unlock the full potential of its renewable energy resources and build a more sustainable future for its people.
