Innovative Financing for Climate Resilience: Insights from the Africa Social Impact Summit
At the recent Africa Social Impact Summit 2025 in Lagos, Nigeria’s Minister of Budget and Economic Planning, Senator Abubakar Bagudu, emphasized the urgent need for innovative financing to tackle climate change and promote sustainable development.
Represented by his special assistant, Bolaji Onalaja, Bagudu stated that we are at a critical juncture. Climate change impacts are no longer distant concerns; they are real and escalating. Communities face dire situations, losing homes and livelihoods to extreme weather events like floods and droughts.
The Nigerian government is dedicated to enhancing climate resilience. Bagudu highlighted initiatives like climate-smart agriculture and renewable energy solutions as vital steps forward. However, he noted that traditional funding sources fall short of the investment required to build resilience in communities.
To address this challenge, the Ministry is focused on creating a vibrant impact investment ecosystem in Nigeria. The goal is to attract private capital into crucial areas and establish frameworks that facilitate this private investment. This collaborative effort aims to yield not just financial returns but also meaningful benefits for local communities.
Olatunji Mayaki, chairman of Sterling Bank, stressed the importance of collaboration. “We come together with a unified mission,” he said, “to create sustainable growth across Africa.” He pointed out the continent’s rich resources and talent, while acknowledging the significant challenges that must be overcome.
CEO of Sterling One Foundation, Olapeju Ibekwe, spoke about the need for multi-sector partnerships to accelerate the Sustainable Development Goals. She believes discussions at the summit could impact Nigeria and the wider African continent, focusing on actionable outcomes.
Notably, recent studies show that climate-related disasters have increased significantly in the past decade. According to the United Nations, the number of climate disasters soared from an average of 50 per year in the 1970s to over 400 annually today. This data reinforces the urgency for innovative solutions and more robust financing mechanisms.
CEO of Sterling Bank, Abubakar Suleiman, highlighted the summit’s progress since its inception in 2021. Collaborating with the United Nations is seen as a critical step toward effective climate action.
With experts and stakeholders coming together, the call for innovative financing to combat climate challenges resonates stronger than ever. By harnessing public-private partnerships and implementing sustainable practices, Africa can pave the way for a resilient future.
