ASSESSMENT OF THE INFLUENCE OF CLIMATE FINANCE AND ESG ON SUSTAINABLE ENERGY IN NIGERIA

This study critically examined the impact of climate finance and Environmental, Social, and Governance (ESG) practices on the adoption and development of sustainable energy technologies in Nigeria. Anchored in a mixed-methods research design, the study combined quantitative surveys of 300 stakeholders, including renewable energy firms, oil and gas companies, power agencies, financial institutions, NGOs, and government regulators, with qualitative insights from key informant interviews (KIIs) and focus group discussions (FGDs). The findings revealed that climate finance has emerged as a pivotal enabler of Nigeria’s energy transition, with grants and concessional loans supporting solar photovoltaic (PV) projects and energy efficiency systems. However, challenges such as limited access for small and medium-sized enterprises (SMEs), bureaucratic bottlenecks, weak monitoring, and insufficient technical capacity continue to constrain effectiveness. Similarly, ESG practices are being increasingly adopted, particularly in environmental reporting and community engagement. Yet, gaps persist in governance-related aspects, including independent oversight, whistleblower protection, and standardised reporting, raising concerns about accountability and greenwashing. The study also documented uneven adoption of sustainable energy technologies, with solar PV dominating due to affordability and scalability, while uptake of wind, hydro, biomass, and smart grids remains low because of financial and infrastructural barriers. These findings highlight the need for scaling up climate finance flows, strengthening ESG institutionalisation, and enhancing technical and regulatory frameworks to foster a just and inclusive energy transition. Overall, the study adds to the growing literature on sustainable development by demonstrating that climate finance and ESG are practical tools capable of driving Nigeria’s low-carbon growth and resilience if strategically harnessed.