Written Evidence submitted by Enconverge Green Ltd.

UK Support for Climate Change Mitigation & Adaptation, Environmental Management and the Renewable Energy transition in Nigeria

 

Who we are

This response is submitted by Enconverge Green Ltd www.enconverge.com . Our overarching themes are convergence and lifting. We exist to help individuals, businesses, and organizations overcome confusion, hopelessness, and silos, and instead embrace clarity, hope, and community in the environmental sector. Our vision is bold but simple ; a future where the environment no longer needs protecting because individuals, businesses and organizations recognise and undertake their roles as environmental stakeholders.

Enconverge was born out of the recognition that the environmental sector in Nigeria and across Africa is highly fragmented. Stakeholders are doing remarkable things, yet their knowledge, resources, and opportunities remain scattered, difficult to access, and often lost in silos. This fragmentation limits the sector’s ability to scale impact, attract investment, and influence policy. Our innovation is an integrated digital platform that brings together critical resources, organizations, and opportunities in one place. By uniting educational institutions, renewable energy providers, waste management organisations, consulting firms, non-profits, professional associations, and certification bodies, we are creating the connective tissue that the sector has long lacked.

Beyond the digital platform, Enconverge also provides policy insights, capacity-building, and sustainability consulting to government, private sector, and civil society actors. We bridge gaps between global sustainability frameworks and local realities, ensuring that strategies are not only visionary but also practical, inclusive, and implementable. Enconverge is shaping a future where innovation, collaboration, and resilience drive Nigeria’s environmental transformation - a future that aligns closely with the UK’s priorities for sustainable partnership with Nigeria.

 

Why we are submitting evidence

Nigeria is at a defining juncture in its development trajectory. For decades, oil has paid our bills, shaped our politics, and dominated our exports yet most Nigerians still do not have steady power, small businesses bleed cash on diesel, and communities in the Niger Delta carry environmental and social costs without seeing real dividends. Nigeria’s vulnerable economy (to global price shocks), rapid population growth (projected to reach over 400 million by 2050), climate stress and high youth unemployment are amplifying pressures on governance, service delivery, and natural resources.

This inquiry comes at a crucial time when international cooperation can either reinforce old patterns or catalyse genuine, people-centered transformation. We are submitting evidence because;

  1. Local Insight Matters: Planned support initiatives and interventions should be informed by voices closest to Nigeria’s challenges and opportunities. Local evidence prevents blindness to realities such as weak subnational governance, informal economies and data gaps.
  2. Bridging Rhetoric and Implementation is key: Whilst Nigeria has strong published national and state policies e.g. the Energy Transition Plan, Lagos 2052, but the challenge is implementation. Our submission highlights areas where the UK could support delivery mechanisms alongside vision-casting.
  3. UK–Nigeria partnership could be catalytic: The UK has comparative strengths in renewable energy technology, regulatory reform, sustainable finance, skills development, and governance - areas where needs to work develop. A carefully curated partnership can accelerate Nigeria’s diversification whilst also creating opportunities for UK businesses.

Submitting evidence is therefore not only about pointing out problems but about charting a roadmap for constructive, mutually beneficial engagement.

 

1.              Overview of UK Priorities in Partnership with Nigeria

The UK’s priorities resonate strongly with Nigeria’s development agenda. Three themes present opportunities for collaboration:

1.1              Reducing Overdependence on Oil-Producing States

1.1.1              Fiscal Reform Support: Assist Nigeria in strengthening non-oil revenue mobilization (tax systems, digital revenue tracking, and curbing leakages).

1.1.2              Regional Economic Diversification: Target UK investment into agriculture, agro-processing, creative industries, and services in non-oil states, reducing regional inequality and easing conflict pressures in the Niger Delta.

Case Example: Support Nigeria’s new drive to expand solid minerals and renewable energy sectors by providing UK expertise in environmental safeguards and transparent governance models.

1.2              Diversifying the Economy

1.2.1              SMEs and Green Entrepreneurship: UK-backed accelerators and blended finance mechanisms can enable Nigeria’s vibrant youth population to build businesses in renewable energy, waste management, digital services, and agri-tech.

1.2.2              Knowledge Transfer: Partnerships between UK universities/think tanks and Nigerian institutions can foster innovation, research, and workforce readiness.

1.2.3              Trade Facilitation: Simplify UK–Nigeria trade pathways for sustainable products, ensuring compliance with ESG and carbon standards that are increasingly shaping global markets.

1.3              Transitioning to Sustainable Growth Models

1.3.1              Energy Transition: UK investment and technology can help Nigeria implement its Energy Transition Plan, focusing on solar, wind, and decentralised energy systems that reach underserved communities.

1.3.2              Climate Adaptation & Resilience: Support data-driven early warning systems, coastal protection, and urban resilience projects in climate-vulnerable cities like Lagos.

1.3.3              Sustainable Infrastructure Finance: The UK can mobilise its leadership in green bonds and ESG investment to unlock climate-smart infrastructure in Nigeria.

 

2.              Development challenges and UK support for businesses and civil society

The key development challenges facing Nigeria are:

i. Poor electricity supply & infrastructure: Over 90 million Nigerians still lack access to grid electricity, and power supply remains unreliable. Businesses spend a large part of their income on generators. Bad roads, weak hospitals, and poorly funded schools reduce Nigeria’s competitiveness and social wellbeing.

ii. Climate Disasters: In 2025, floods in Niger State killed more than 500 people and displaced thousands, destroying farms, schools, and health centers. Climate shocks are worsening poverty. Importantly, not all disasters are natural—illegal mining, blocked drainage, and poor planning worsen flooding. This is why we need communities that are conscious of protecting their environment.

iii. Insecurity: Armed groups and bandits continue to attack communities, especially in the North. In July 2025, militants linked to IS-affiliates attacked villages in Sokoto and Katsina, killing worshippers and kidnapping residents. Farmers also face violent clashes with Fulani herders, whose cattle destroy crops, wiping out livelihoods. Agriculture contributes about 25% of Nigeria’s GDP. So, these attacks directly threaten food production and farmers’ income.

iv. Hunger & Poverty: Food prices are soaring, leaving millions without enough to eat. In January 2025, the UN warned that 31 million Nigerians are at risk of hunger, but only 21% of the $130 million aid request had been funded. A basic pot of Jollof rice now costs ₦27,500, almost 40% of the new minimum wage (₦70,000). This shows that even average families can no longer afford a comfortable daily meal.

v. Inflation: The Nigeria depends heavily on oil for government revenue. But in mid-2025, falling oil prices forced the IMF to advise Nigeria to cut its 2025 budget. Inflation remains very high, and food inflation is above 30%, making life harder for households.

Our submission zooms in on the first two; the UK can help by:

i. Investing in clean energy and flood-resistant mechanisms, solar mini-grids to bring power to rural communities, clinics and roads to reduce disaster losses.

ii. Facilitating the disbursement and monitoring of funds to local NGOs. This would entail provision of formal trainings on financial and project reporting. By starting with small projects, capacity to execute larger projects would be developed. This trust builds sustainability.

 

3.              Principles to guide UK – Nigeria development engagement

3.1              Local Ownership: Programmes should be co-created with Nigerian federal and state governments, civil society, and local communities.

3.2              Accountability: Engagement should include citizen feedback loops and transparent monitoring. Town hall meetings, e-procurement platforms, and other measures that can enable the citizens to be informed and track capital projects and budget allocation will improve accountability and trust between government and communities.

3.3              Inclusion: Ensure that programmes empower youth, women, and marginalised groups, given Nigeria’s demographics and inequality levels. For example, The UK-funded Educating Nigerian Girls in New Enterprises (ENGINE II) project supported over 48,000 adolescent girls and young women to transition into education, vocational training, and entrepreneurship, improving economic inclusion.

3.4              Climate-Smart: Alignment with Nigeria’s Nationally Determined Contributions (NDCs) and Just Energy Transition Plan.

3.5              Private Sector Leadership: UK aid and finance should serve as a catalyst for private investment, not a substitute.

3.6              Flexibility: UK engagement should adapt to Nigeria’s fast-changing realities. For example, the subsidy removals, regional security, local government autonomy, transition into renewable energy, etc. The UK should be thoughtful and understand that it ought to be flexible enough in its aid to have quick and significant impacts in any Nigerian reality.

3.7              Technology-oriented: Leverage Nigeria’s tech ecosystem for governance, education, health, and trade. For example; Nigeria’s fintech sector, led by firms like Flutterwave and Paystack, already partners with UK investors. UK support can help scale digital ID systems, e-procurement platforms, and EdTech tools to strengthen other governance and service delivery efforts.

3.8              Long-term: Align programmes and projects with Nigeria’s Renewed Hope Agenda (2023–2031) and National Development Plan (2021–2025). It is advisable that investors prioritise long-term project cycles.

 

4.              Existing UK – Nigeria support for equitable investment; role of development finance institutions e.g. BII

4.1.              Existing:

4.1.1              High-level frameworks - trade & investment partnerships: The UK and Nigeria have strengthened formal economic cooperation via an Enhanced Trade & Investment Partnership and a published UK–Nigeria factsheet that frames trade, export support, and cooperation on economic reform priorities. These mechanisms provide fora for policy dialogue, market access facilitation, and commercial diplomacy that underpin equitable investment.

4.1.2              Bilateral development programming targeting governance & anti-corruption: FCDO maintains Nigeria-specific development programmes and anti-corruption projects designed to strengthen public financial management (PFM), oversight institutions, and prosecution of high-level graft, helping improve the rule of law and investor confidence. Recent DevTracker entries show explicit UK support for anti-corruption measures and institution-strengthening work.

4.1.3              Supporting public governance and economic policy reform: UK engagement blends policy dialogue (through embassy/FCDO teams and parliamentary/technical exchanges) with programme support that embeds with state ministries and agencies (for example, governance and education programmes that work with state budget execution and accountability systems). This combination aims to improve service delivery and create predictable public sector counterparties for private investors.

4.1.4              Anti-corruption convening and international cooperation: FCDO co-hosts and funds international anti-corruption fora and partnerships (e.g., Partnerships for Anticorruption), which strengthen cross-border cooperation, policy norms, and the donor community’s ability to coordinate on sanctions, asset recovery, and capacity building for law enforcement.

4.1.5              Trade facilitation and export support for equitable commercial links: UK export and trade guidance encourages diversification of Nigeria’s economy (agriculture, manufacturing, renewables), and provides market entry support for UK and Nigerian firms, helping create equitable, rule-based opportunities for local firms to plug into export value chains.

4.2              Role of DFIs especially BII:

4.2.1              Patient, catalytic capital, and risk-taking. BII (formerly CDC Group) provides long-term, patient capital to Nigerian businesses and infrastructure projects that commercial banks often avoid, for example, investments in agribusiness, energy, fintech, and mobility. These investments both unlock projects that improve service coverage and signal to private investors that viable returns exist. Example: BII has committed capital to Nigerian agribusiness and mobility fintech deals (e.g., Johnvents cocoa processor, Moove).

4.2.2              De-risking and mobilising private capital: BII uses equity, subordinated debt, and blended finance structures to reduce first-loss or currency risk, thereby mobilising additional private finance. DFI participation often allows foreign and domestic financiers to increase exposure to higher-impact sectors (renewables, SMEs, manufacturing). Recent BII reporting shows increased commitments to Africa and a large active portfolio.

4.2.3              Technical assistance and capacity building: Beyond finance, DFIs (including BII) provide advisory services to strengthen corporate governance, environmental & social standards, and governance practices within portfolio companies, improving investee transparency and long-term resilience. That advisory function complements FCDO governance and anti-corruption programmes.

4.2.4              Market development & local currency solutions: DFIs can pilot local-currency lending, support local capital markets, and back funds that invest in SMEs, helping reduce FX mismatch risk for Nigerian firms and encouraging growth of domestic financial intermediation. This is essential where naira/FX volatility would otherwise discourage long-term investment. (DFIs are increasingly cited as filling gaps left by shrinking bilateral aid).

4.2.5              Policy dialogue & convening power: DFIs leverage political and commercial access: their investments and risk analysis often inform government reforms (e.g., improving PPP frameworks, procurement transparency) and provide examples of bankable projects that reformers can scale. BII’s presence signals UK government backing and can be a lever in policy discussions.

Key risks & trade-offs

● DFIs face reputational risks if portfolio companies fall short on governance/ESG; close coordination with FCDO anti-corruption and safeguarding programmes is needed.

● Macro risks (currency, inflation) raise financing costs and can erode project viability without local-currency buffers or indexation mechanisms.

● Aid cuts and tighter UK ODA mean DFIs’ role becomes relatively larger, good for mobilising capital, but insufficient alone to replace governance reform and long-term capacity building.

 

5.              Opportunities and Challenges faced by the FCDO in the localisation of development activities

5.1              Opportunities

5.1.1              Local integration: Nigerians know their problems best. It is an opportunity for the UK government to integrate the indigenous people of the state, locality into their to be invented programs, events, etc. Working with local organisations means solutions are more practical. For example, FCDO’s PERL programme helps citizens and state governments improve budgets and governance.

5.1.2              Existing Success: PLANE supports schools and teachers to improve learning for over 2 million children. LAFIYA works with Nigerian health systems to improve healthcare in northern states.

5.1.3              Strong community ownership: When local NGOs and communities are in charge, projects last longer. Nigeria is endowed with vibrant local enthusiasts who desire the development of their communities when shown or given opportunity to thrive.

5.1.4              Digital and local systems are improving: Nigeria is a fast-growing land for digital and tech development.

5.2              Challenges

5.2.1              Reduced Funding: UK aid has been cut in recent years, so less money goes to Nigeria. In February 2025, the UK government announced it will reduce aid from 0.5% of GNI to 0.3% by 2027. Bilateral aid for all countries will fall from £8.7 billion in 2025/26, taking a bite out of Nigeria’s development funding.

5.2.2              High costs in Nigeria: Inflation and the weak naira make projects more expensive. Inflation and a weak naira are making projects much more expensive. By mid-2025, the cost of cooking skyrocketed by 153%. Also, building material prices surged, cement, iron rods, blocks shot up by 75%+, halting many state projects.

5.2.3              Rules and Regulations: Nigerian banks and government agencies have strict financial rules. Small local NGOs struggle to meet these requirements. Strict bank and government rules make it hard for small NGOs to receive funds. Example: Nigerian NGOs are facing tighter scrutiny from government agencies, requiring multiple registrations, even before accounting for security steps and donor funds are much harder to access.

5.2.4              Security Issues: Violence in the North makes it hard for aid workers and local groups to reach people. Violence in northern Nigeria makes it unsafe and difficult to deliver aid. In July 2025, militants linked to IS-affiliated Lakurawa stormed a village in Sokoto state during prayers, killing 15–17 people. And in August, a mosque attack in Katsina killed over 50 worshippers. These attacks force NGOs to halt operations, restrict movement, and fear for staff safety.

5.2.5              Weak Support for Local NGOs: Many Nigerian groups do not have enough training in finance, audits, and reporting, so FCDO is cautious to give them big funds. A 2025 summary by the Nigeria Network of NGOs points out that local organisations struggle with funding, complicated regulations, and limited capacity in reporting and compliance.

6.              Positioning UK Investment and ODA for support with Renewable Energy transition and Environmental management

6.1              Our Nigerian voice on the transition is simple: power communities, not just cities. Most households cannot rely on the grid; community level solar, wind, and micro‑hydro will light homes, power small businesses, and reduce diesel use where the need is highest.

6.2              Make policies work for people: tax breaks for household solar kits, affordable financing for market women and artisans, and simplified licensing for local developers.

6.3              Skills for today and tomorrow: hands‑on training for solar engineers and energy technicians, and pathways for oil‑and‑gas workers into green work.

6.4              Invest in people, not just hardware: involve Delta communities in decisions, create alternative jobs, and restore degraded environments otherwise distrust will grow. Back local innovators pay‑as‑you‑go solar, waste to energy, circular economy startups and unlock green finance for ordinary Nigerians through micro‑loans, pay‑over‑time models, and UK‑backed risk sharing so households and SMEs can afford clean tech without huge upfront costs. This is not just climate policy; it’s about dignity steady light for the student in Yola, reliable cold chain for the pharmacist in Aba, lower costs for the tailor in Benin.

6.5              Combine ODA with BII/UK Export Finance to de‑risk renewables and nature‑based solutions; expand results‑based subsidies for mini‑grids and clean cooking; finance C&I solar to cut diesel in industry and markets; fund adaptation (flood defences, climate‑smart agriculture, urban resilience); and tie all finance to open data and community participation so impact is seen and trusted.

Bringing this together, our bottom line is human and practical. Nigeria’s transition is not a theory, it’s light for homes, lower costs for traders, new jobs for graduates, and restored dignity for communities long affected by oil extraction. With UK partnership that is co‑created, accountable, and people‑centred, Nigeria can move from diesel and dependency to clean power, green jobs, and resilient growth, not in headlines, but in households.

 

7.              Conclusion

The UK–Nigeria partnership should prioritise practical, people-centred action. We recommend UK support for fiscal reforms and regional diversification beyond oil, with investment in agriculture, solid minerals, renewables, SMEs, and green entrepreneurship. Knowledge transfer, simplified trade pathways, and blended finance can unlock youth innovation and sustainable markets. Engagement must be co-created with Nigerian actors, ensuring accountability, inclusion, flexibility, and alignment with national plans. ODA and DFIs like BII should de-risk renewables, expand mini-grids, finance climate-smart agriculture, and strengthen NGO capacity. Above all, UK investment should power communities, generate green jobs, restore degraded environments, and build lasting local participation.