By joshua Building Climate Finance Readiness: Nigerian Entities must Move From Climate Finance Intent to Strategic Action, and Procrastination to Results
I have observed with growing interest the limited capacity of Nigerian sub-national governments to effectively navigate and unlock the climate finance landscape, particularly the opportunities presented by global climate grants.
Global climate finance and grants do not come to states simply because they have a climate policy or because they express interest in climate action. Climate finance is accessed through readiness. International and domestic financing institutions increasingly look for strong governance, credible institutions, sound fiduciary systems, viable projects, measurable results and clear alignment with national climate priorities.
From my experience exploring climate governance and climate finance processes, this is where many subnational governments need to change their approach. A lot of them have this misconception that Climate Finance may just be a freeby
We can no longer continue to develop climate policies and frameworks and then leave them on shelves without translating them into practical programmes and projects. A policy is only as valuable as the action it produces. States must begin to treat climate finance readiness as a serious development priority and deliberately build the systems, expertise and project pipelines required to attract and effectively utilise available resources.
This means moving beyond statements of intent to the development of bankable mitigation, adaptation and resilience projects. It means strengthening climate data and Monitoring, Reporting and Verification (MRV) systems, integrating climate considerations into development plans and annual budgets, improving institutional coordination, building technical capacity and creating the necessary conditions for private-sector participation.
It also means ensuring that our state-level climate actions are properly aligned with Nigeria’s Nationally Determined Contribution (NDC), national climate policies and MRV conforms with Biennal Transparency Reporting (BTR). The NDC should not remain a national document discussed mainly at conferences. Its priorities must find practical expression in our states, local governments, communities, projects and investments.
There is therefore a need for a fundamental shift in mindset. Climate action should no longer be treated as an activity we undertake only when funding becomes available. Rather, we should develop the institutional readiness and credible project pipelines that make us worthy and capable of receiving climate finance when opportunities arise.
I am particularly concerned about states that have developed climate policies but have not followed them with clear action plans, states that have established governance structures but have not made them operational and states that are waiting for climate funds to arrive before taking meaningful action. This approach will increasingly put such states at a disadvantage.
It is evidently clear that global climate finance environment is becoming more competitive and more rigorous. Those who prepare their institutions, develop quality projects, provide credible data, demonstrate transparency and establish sustainable financing mechanisms will be better positioned to attract resources. Those who continue to procrastinate may find themselves watching opportunities pass them by as financing opportunities evolve.
My message and position is therefore very straightforward: states that want to benefit from the climate finance opportunities must begin preparing now. Their climate finance readiness must move from aspiration to deliberate government action. States must prepare now in order to be able to enjoy the various funding windows. States must begin to operate like real ECONOMIES not drainage pipes for mere resources distribution. They must institute actions and framework to mobilise private capital and development finance for sustainable growth.
Let me end with this conscious expert counsel:
“Ambition without investment remains aspirations, but ambition backed by capital becomes implementation.”
— Dr. Tenioye Majekodunmi (DG, NCCC)
Michael Onimisi Ajibade
Director-General
Kogi State Climate Change Agency