Yemisi Izuora
Nigeria is working on a fresh framework to attract climate finance for smallholder farmers affected by drought, flooding and other climate-related challenges.
The Chairman, Presidential Implementation Committee on Technology Transfer (PICTT), Dr Dahiru Muhammed, disclosed the plan at a Taxonomy Validation Workshop on Adaptation and Resilience Solutions organised by PICTT in collaboration with YAPU Solutions in Abuja.
He said the framework would help direct climate finance to vulnerable farming communities, strengthen agricultural resilience and protect livelihoods.
Muhammed said the Federal Ministry of Finance and the UN Development Programme (UNDP) were developing Nigeria’s national taxonomy, while PICTT and its partners were working to make the framework operational and accessible to rural communities.
He explained that the taxonomy would define activities eligible for climate finance, providing a basis for directing funding towards adaptation and resilience initiatives.
“Financing has not yet been assessed; stakeholders are still developing the framework and identifying the partners required to implement it.
“Governments at the federal, state and local levels must work together to address climate-related challenges, particularly flooding, through improved infrastructure and effective mitigation measures.
“PICTT has worked on technology transfer, agricultural development and helping entrepreneurs transform research into commercially viable products,” he said.
Muhammed said the workshop was designed to develop an implementation framework for Nigeria’s national taxonomy, which would guide the identification of activities eligible for climate finance.
Mr Christoph Junghleisch, Managing Director of YAPU Solutions, said climate adaptation presented an investment opportunity worth up to 30 billion dollars annually for smallholder farmers.
He said YAPU Solutions was working with PICTT to establish a framework connecting climate adaptation solutions with appropriate financing.
“Initial plans can involve a pilot project worth between 100 million dollars and 200 million dollars, with the ambition of scaling up financing to one billion dollars in the first expansion phase.
“However, these figures represent targets rather than confirmed funding commitments,” he said.
Junghleisch identified digital technology as essential to ensuring transparency and accountability in the proposed financing system.
He said the system would digitally document funds reaching smallholder farmers and make transactions auditable.
He added that YAPU Solutions was engaging development finance partners, including the Bank of Agriculture and the African Development Fund, while seeking private-sector investment.
He said government support through appropriate policies, legislation and regulations would be essential, as public funding alone could not meet the scale of investment required.
Dr Charles Nyangbe, Country Representative of WorldFish in Nigeria, said the country needed financial instruments tailored to the different climate challenges confronting farmers across its regions.
He noted that northern Nigeria faced drought, while communities in the south experienced flooding and waterlogging, requiring different adaptation strategies and financing arrangements.
Nyangbe said the proposed taxonomy would help financial institutions develop sustainable lending mechanisms for farmers, adding that climate finance differed from conventional government budgetary allocations.
He recommended instruments such as index-based insurance and blended finance to help farmers manage climate-related risks.
“Government should channel climate funds through commercial banks and other financial institutions, using public funds as guarantees to encourage lending to farmers.
“Government should also come up with an envelope of funding that is targeted at climate financing, give it to financial institutions and commercial banks so that they can lend,” he said.
According to him, Nigeria has attracted about 2.5 billion dollars in climate-related financing, but the amount remains significantly below estimated requirements.
He called for greater attention to livestock, fisheries and aquaculture, noting that climate finance discussions often focused excessively on crop production.
“Flooding can destroy fish ponds and aquaculture facilities, causing substantial losses for farmers,” he said.