UKNIAF works to improve the capacity of government agencies to screen, prepare bankable climate-smart infrastructure projects, and access downstream financing.
Through its Infrastructure Finance component, UKNIAF is providing technical assistance to the Federal Ministry of Finance, Budget & National Planning (FMFBNP), and selected Federal ministries, departments and agencies (MDAs). Our support also extends to Kaduna and Ogun State Governments, as part of the FCDO’s commitment to support the Government of Nigeria in sustaining progress towards the mainstreaming of Nigeria’s updated National Determined Contributions in national planning and annual budgeting processes.
Positioning eligible climate-smart infrastructure projects on the UKNIAF Project Pipeline for up to $2bn is central to the component’s approach. These pipeline projects were identified as available for early stage and downstream financing from early engagements with DFIs including the African Development Bank (AfDB), the World Bank, IFC, and the French Development Agency (AFD).
Through the FMFBNP, we are assisting the Federal Government of Nigeria (FGN) in establishing a clear link between the priorities defined in the Medium-Term National Plan (MTNDP) and the annual capital budget. Crucially, given the urgency to actualise Nigeria’s recent commitment at COP26 to achieve Net Zero emissions by 2060, this work is placing climate considerations – particularly alignment with the NDC commitments – as an embedded part of Nigeria’s Public Investment Management framework.
Using a phased approach we are working with the Budget Office and infrastructure MDAs to prioritise low-carbon, climate-smart projects with demonstrable development impact, in the annual capital budgeting process. This is being done with funding support from the UK Department for Business, Energy and Industrial Strategy (BEIS) UKPACT Programme and by adopting the UKNIAF Decision Support Tool (DST) which incorporates specific climate, poverty reduction, gender equality and social inclusion criteria.
Working collaboratively with the FGN, the NDC Partnership, UK Climate Finance Accelerator and a number of DFIs, Climate Finance Providers and local NGOs, we are working towards;
- developing a climate financing strategy aligned with the updated National Determined Contributions, and the medium-term national plan for adoption in the 2023 budget process
- greening the selection of MDA capital projects for the annual capital budget by using the DST
- developing an online Climate Finance Database consisting of a central pipeline of climate-smart infrastructure projects, climate finance providers, as well as capacity building resources and opportunities, and
- building the institutional and human capacity of end-user MDAs in using the DST to screen infrastructure projects for budget allocation
The online Climate Finance Portal to be developed in partnership with the NDC Partnership, will be a central repository of information on project opportunities, financing, and support providers, and accessed by investors, project sponsors, and financiers.
This database will initially be hosted on the UKNIAF website, and eventually transferred to the FGN.
Leading up to the launch of the Climate Finance Database in December 2021, UKNIAF is hosting a number of knowledge-sharing seminars with DFIs and Climate Finance providers.
To participate or for the opportunity to be featured on the Climate Finance portal, kindly write to Ron Sircar, IF Project Manager at [email protected]
