Africa Needs Over $100 Billion Annually for Climate Adaptation – SEC Chief
The Director-General of Nigeria’s Securities and Exchange Commission (SEC), Emomotimi Agama, says Africa faces an urgent climate adaptation funding gap of over $100 billion per year and is calling on capital markets to help bridge this shortfall.
Speaking at the recent African Development Bank (AfDB) meeting, Agama delivered a presentation titled “The Role of Capital Markets in Closing Financing Gaps for Climate Adaptation”. He stressed the urgency of mobilizing private capital to address the continent’s climate challenges.
Despite contributing less than 4% of global greenhouse gas emissions, Agama said Africa suffers over 25% of climate-related damages. He cited estimates from the AfDB’s 2022 African Economic Outlook, which projects that the continent will require $500 billion in climate financing by 2030. Additionally, over $3 trillion will be needed for climate mitigation and adaptation to meet Nationally Determined Contributions (NDCs).
“These figures are not just numbers—they represent real human costs,” Agama said, pointing to worsening livelihoods in the Sahel, declining fish stocks in the Gulf of Guinea, and increasing floods in cities like Lagos and Nairobi.
He referenced the UN Environment Programme’s 2023 Adaptation Gap Report, which estimates that developing countries could require between $212 billion and $387 billion annually for adaptation by 2030. For Africa, the funding gap could be up to 50 times current investment levels.
To address this, Agama urged African businesses and project developers to prepare bankable, impact-driven climate projects, while encouraging governments and regulators to align market policies and standards. He highlighted the potential of African capital markets to drive investment through regional integration, harmonized standards, and frameworks such as the International Sustainability Standards Board (ISSB) guidelines.
“Bridging the climate adaptation gap is not optional, it’s essential for the continent’s survival and progress,” he said.
Agama pointed to Nigeria’s success with its 2017 sovereign green bond, the first in sub-Saharan Africa, which was oversubscribed by 2.5 times, mainly by pension funds and diaspora investors. This, he said, proves that local capital can be tapped for climate-friendly projects with the right instruments and investor confidence.
He also noted that Nigeria is playing a lead role in sustainability reporting. The SEC currently represents the country on the ISSB’s Adoption Readiness Working Group, which has mapped out a phased approach for adopting the IFRS S1 and S2 sustainability disclosure standards, moving from voluntary adoption (2024–2026) to mandatory compliance starting in 2027.
Calling the ISSB standards a “game-changer,” Agama praised Nigeria’s innovation in climate finance and its leadership in setting global sustainability benchmarks.
He concluded by urging greater regional cooperation, unified ESG standards, and the use of risk-reduction tools like credit enhancements to attract early-stage investment in climate projects.
“This is the time for all stakeholders-regulators, investors, policymakers, and development partners—to act. We must strengthen Africa’s capital markets and finance the resilience of our continent,” he said.
The PUNCH previously reported Agama’s call for regulators and businesses to embrace environmental, social, and governance (ESG) principles in advancing sustainable development goals.
