Nigeria

Nigeria's 'Economic Recovery and Growth' development plan (2017-2020) primarily focused on job creation, and fiscal and monetary policies in an oil-industry centered context, incentivising growth in economically productive sectors such as agriculture and construction, and providing support for SMEs. While lacking a coordinated, green economy strategy, the plan did incorporate some notable green measures, such as a sizeable solar homes installation scheme - connecting 25 million people to the National Grid.

In July 2021, Nigeria released its latest five-year National Development Plan (2021-2026). It largely follows the ERGP in its focus on private-sector led economic growth, but does identify the green economy as one of several "global megatrends" which the country should take advantage of. It is from this perspective that the NDP (in a chapter on environment and disaster management) lists a series of green "opportunities to be exploited" (covering the green and circular economy, bioeconomy and renewable energy) - missing the opportunity to embed the plan as a whole in a holistic green economy vision. Nevertheless, it's certaintly a step forward: setting some explicit green commitments and objectives aligned to Nigeria's latest NDC and recently approved Climate Change Bill - suggesting that the country is starting to take green economy thinking seriously.

Nigerias government includes some civil society members and private sector companies in dialogue and policy related processes, although at a very limited scale and with a low level of transparency. The countrys National Gender Policy and implementation plan refers to women human rights promotion and working towards the end of discrimination and violence, and of the empowerment and integration of women in society (i.e enhanced capacities of women entrepreneurs and producers, political participation). However, the country remains far from true womens empowerment as leadership positions held by women in the public sector or corporations remain very limited. The countrys latest Voluntary National Review indicates a lack of data for women in managerial or leadership positions and points out that political participation has regressed. No evidence was found in relation to employee consultation or involvement in corporate governance or general consultation in general policy-making processes.

Although some SDGs references have been made in national context, there are currently no national initiatives in Nigeria that foster or promote significant business engagement with the SDGs. The Current focus of the national government is in securing energy access, access to financing and job creation in key priority areas.

The Central Bank has worked with some of the countrys banks to create a Strategic Sustainability Working Group that has led to the creation of the Nine Principles for sustainability in banking industry, including integrating environmental and social considerations into decision making, and the promotion of financial inclusion. However, these are voluntary principles on which different entities at working at different speeds, and without regulation that enforces compliance. The Government has included the issuance of a green bond to finance projects as part of its Economic Recovery and Growth Plan, but has not yet taken this step. There are some wealth accounting sub-components in a pilot stage of development at the subnational government level in collaboration with the Ministries of finance and environment.

There are initial discussions and pilot projects supported by UNDP and other development partners on green fiscal reform. However, these promising initiatives are being developed at a sub-national level without a clear indication for similar implementation at the national level. On a positive note, the government of Nigeria is pushing for the passage of a climate change bill with elements which will serve as pillars for green fiscal reform and has included issuing a sovereign green bond to finance environmental projects as part of the Economic Recovery and Growth Plan.

Nigerias fiscal policies look to increase revenues from oil, raising VAT for luxury items, increase the tax to GDP ratio, etc. Monetary policies focus targets on a stable exchange rate, ensuring adequate credit to private sector and reinforcing supervision of banks. There is currently no clear process for reviewing environmental sustainability in these policies.

Nigeria has commited to a set of principles for the promotion of sustainable banking practices, including the mainstreaming of social and environmental variables in banking operations, supply chains and lending. The Central Bank of Nigeria currently carries out stress testing every 2-3 years, focusing predominantly on financial risk.

However, Nigeria recently conducted a pilot Green Tagging Banking Review exercise which assessed the loan portfolios of three banks and their levels of "brown/green" lending (including climate related exposure) based on an established taxonomy. The review also sets out a voluntary monitoring and disclosure framework for Nigerian financial institutions to accurately and transparently report their green financial footprint to regulators. In September 2021, the central bank committed to implementing Basel III criteria, a voluntary global regulatory framework that addresses bank capital adequacy, stress testing and market liquidity risk. Taken together, Nigeria is demonstrating genuine ambition on green finance, with review findings anticipated to impact stress testing implementation in the near future.

Nigeria's recently approved Climate Change Bill, which adopts a net zero target for between 2050-2070, includes provision for "the setting up of mechanisms for carbon emissions trading and a carbon tax". The bill directs the newly-established National Council on Climate Change to collaborate with the Federal Inland Revenue Service to design and develop a mechanism for a carbon tax, with the proceeds channeled into a new Climate Change Fund to provide much needed finance for climate mitigation and adaptation. This directive specifically, alongside the President's signing of the climate bill as a whole, represents a landmark step forward for Nigeria - though its clearly too early to assess any specfic proposals for carbon tax or trading schemes at this stage.

Nigerias government has developed action plans covering many different sectors, but in general there's no "green" approach. In agriculture there's a reference to climate smart agriculture, taking into consideration climate change adaptation in agriculture, including through climate smart agricultural technologies and practicing sustainable agricultural production and processing. In relation to the energy sector, the Energy For All Strategy plans to install solar systems in 5 million households, although there's no general "green" plan for the energy sector. In the context of transportation, there's an aspiration to increase the presence of mass transport options.

One of the the key execution priorities within Nigerias Recovery and Growth plan is driving industrialisation on SMEs. Also, in the context of this manufacturing push, key activities include providing micro-loans for women through the Government Enterprise and Empowerment Programme and Women Empowerment Fund. However, there is no particular focus on linking SMEs to green business models or social enterprises.

Nigeria's recently approved Climate Change Bill, which adopts a net zero target for between 2050-2070, includes provisions for developing a carbon budget. Specifically, the Federal Ministry of the Environment has been tasked with setting five-year carbon budgets (with annual reduction targets), formlated within a new National Climate Change Action Plan - to be ratified by the Federal Executive Council. The newly-established National Council on Climate Change will coordinate climate-related policies and oversee implementation of the budget. The President's signing of the bill represents a landmark step forward, placing Nigeria well ahead of its peers in terms of commitments to emissions reduction - though, with the official text of the bill still due to be released, clearly in the preliminary stages of carbon budget development.

The Sustainable Energy for All (SEE4ALL) action Agenda for Nigeria was developed through concerted efforts of over 20 ministries with inputs from representatives of the 36 states and FCT as well as the private sector, NGOs, civil society, Academia and Development partners. The process was supported by the ECOWAS Centre Renewales Energy and Energy efficiency (ECREEE), AFDB, GIZ, UNDP etc. This document identified the gaps, set targets for energy access until 2030 and proposed actions needed to achieving the overarching objectives of renewable energy among other important components. Also the Energy commission of Nigeria in its Energy Master Plan set potential for renewable energy at 3500MW, a total of 70 micro dams, 126 mini dams and 86 small sites has been identified. Though studies showed that some sites are not viable during off seasons. Nigeria is also a signatory to the ECOWAS Renewable Energy Policy that set a target to increase renewable energy in the region overall electricity mix to 10% in 2020 and 19% in 2030.

The Energy For All, solar power strategy is expected to support 250.000 jobs through the installation of solar home systems and mini-grids in up to 5 million households. Private sector installers of solar systems will be supported to access low-cost financing in order to install them at an affordable price. These will cover areas that currently are not connected to the grid. It is expected that this programme will lead to the creation of additional jobs as manufacturers will be required in Nigeria (because of scale of the project), in addition to installation, servicing and payment collection jobs. The Recovery and Growth plan emphasizes the aim to reduce unemployment and under-employment among the youth through different programmes, although it does not have a particularly green focus, beyond inequality.

Nigeria has a National Social Investment Programme targeting the poor and vulnerable members of the population, including health and education measures. Although the countrys Voluntary National Review identifies critical actions needed, it is not clear whether these measures are being implemented. Specific policy objectives in the Economic Recovery and Growth Plan include increasing social inclusion by enhancing the countrys social safety net for the poor and vulnerable, but no particular environmental or climate related focus to these initiatives has been found.

Although policymaking processes keeps vulnerable groups as its focus, public consultations during the policymaking process is generally selective and limited. There are pockets of information and news items on environmental policy consultation process on the internet, although no definite engagement procedure has been developed by the government. In cases where there is a limited participatory process, the participating NGOs are selected via an ad hoc process, including at times those that were lucky enough to know about the policy under review.

Nigerias Economic Recovery and Growth Plan includes different measures for social protections, especially vulnerable groups, although not particularly linked to a broader strategy and "green" perspective. Some measures include: roll out of universal health coverage and expansion of the NHIS towards universal health coverage, and provision, through the Home Grown School Feeding Programme, of a meal a day to at least 6 million primary school children. The Plan also includes a national relief programme for the aged and the launch of a national programme for the physically challenged.

The country has a National Biodiversity and Action Plan for the conservation of biodiversity, but no specific targets or actions found. The National Action Plan to Combat desertification was being mainstreamed (2012) intro country's development plans and policies.The Great Green Wall initiative intends to address land degradation and desertification, rehabiliitate forest reserves and national parks end establish a functional dabase on drought and desertification.

Nigerias National Bureau of Statistics developed a pilot energy framework and mineral resources account, as well as valuation studies on the marine sector as well as ecosystem services. Steps have been taken to develop a road map that will result in an Action Plan on Natural Accounting and legislation to back it up. However, this process has not been completed.

There are ongoing consultations on mainstreaming Natural capital into Nigeria's national Development Plan. The political will is high since consultation meetings included in attendance the top officers and staffs of the Ministry of the Environment, a senior aide for the Minister for Budget and the national planning and chairman of the federal house of representative committee on climate change and biodiversity. A 15 point recommendation emerged from the meetings which proposed the creation of a similar committee as natural capital committee.

Following the decrease of oil prices caused by the pandemic, the government of Nigeria scrapped fuel subsidies. However, no further measures/policies have been found suggesting significant movements towards nature-based fiscal reforms. At the state level, nonetheless, there are initial discussions and a pilot project supported by the UNDP and other development partners on green fiscal reform.