Project Case Study
The Climate Finance Accelerator (CFA) Programme in Nigeria
Australia’s Commitment to Climate Resilient Roads and Economic Recovery
Nigeria faces significant challenges in mobilising private finance to support its low-carbon, resilient, and just transition in line with the Paris Agreement. Despite its updated Nationally Determined Contributions (NDCs) and climate ambitions, there is a need to strengthen the pipeline of investable projects, improve their bankability, and connect them with suitable financing. Additionally, gaps in the investment ecosystem, limited capacity among financial institutions, and the need for stronger public-private partnerships hinder the flow of climate finance.
The Climate Finance Accelerator (CFA) Nigeria addresses these challenges by creating a platform to de-risk and fund low-carbon opportunities, enhance collaboration between stakeholders, and build a sustainable framework for mobilising climate finance at scale.
The Climate Finance Accelerator (CFA) Nigeria tackles the challenge of mobilising climate finance by creating a platform that bridges the gap between project proponents and financial institutions. It strengthens the pipeline of investable low-carbon projects by improving their bankability and aligning them with the needs of financiers. The project facilitates structured dialogues, workshops, and events to connect projects with both Nigerian and global sources of climate finance. Additionally, CFA Nigeria builds the capacity of stakeholders, including project developers and financial institutions, to enhance their understanding of blended finance and climate investment opportunities. By fostering collaboration, improving market visibility, and addressing policy and regulatory barriers, CFA Nigeria lays the groundwork for a sustainable, autonomous institution capable of driving Nigeria’s low-carbon transition.
- Strengthened Project Pipeline: The CFA Nigeria has supported the development of a robust pipeline of investable, low-carbon projects by working with small and medium-sized enterprises (SMEs), start-ups, corporates, and public-private partnerships (PPPs), aligning them with the needs of financial institutions.
- Capacity Building: The project has enhanced the knowledge and skills of project proponents to improve the bankability of their projects and has trained financial institutions to better understand and utilise blended finance mechanisms for climate investment opportunities.
- Facilitated Connections: CFA Nigeria has raised the visibility of climate projects and connected them with Nigerian and global financial institutions through structured dialogues, workshops, and events in Lagos and London, successfully mobilising multiple sources of finance.
- Institutional Development: The development of a comprehensive Business Plan has set the stage for the launch of CFA Nigeria as an autonomous institution. This plan ensures that the organisation will operate independently with its governance, business, and funding model, enabling it to mobilise climate finance effectively and sustainably.
