Report on Mainstreaming Climate Action and Sustainable Development Goals into Nigeria’s Federal Ministry of Industry, Trade & Investment

Executive Summary

This report assesses the integration of climate action, in line with the Sustainable Development Goals (SDGs), within Nigeria’s Federal Ministry of Industry, Trade & Investment (FMITI). Despite national commitments such as the Climate Change Act and the Energy Transition Plan, a significant policy gap exists, hindering progress towards key SDGs.

• Policy Disconnect: A critical disconnect is observed between Nigeria’s climate commitments (SDG 13: Climate Action) and the operational policies of the FMITI, which have minimally incorporated sustainability objectives. This misalignment impedes coherent progress towards national development.
• Opportunities for Sustainable Growth: The report identifies substantial opportunities to align economic activities with the SDGs. By integrating climate action, Nigeria can advance SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 7 (Affordable and Clean Energy) through green industrial policies, renewable energy promotion, and circular economy models (SDG 12: Responsible Consumption and Production).
• Identified Barriers: Major obstacles to achieving this integration include policy incoherence, weak inter-agency coordination (hindering SDG 17: Partnerships for the Goals), infrastructure deficits (impeding SDG 9), limited access to climate finance, and low institutional awareness of the SDGs.
• Strategic Recommendations: The report advocates for the FMITI to spearhead the development of a national green industrial framework. Key actions include improving infrastructure for clean energy (SDG 7), designing green financial instruments, enforcing climate policy compliance (SDG 16: Peace, Justice and Strong Institutions), and fostering public-private partnerships (SDG 17) to drive sustainable development.
• Action Framework: A detailed action plan is proposed, drawing lessons from international best practices, to guide Nigeria towards a just energy transition and a sustainable economic transformation that fully embraces the 2030 Agenda for Sustainable Development.

1.0 Introduction

Climate change presents a formidable challenge to 21st-century development, with direct implications for achieving the Sustainable Development Goals. For Nigeria, Africa’s largest economy, vulnerability to climate impacts threatens progress on SDG 13 (Climate Action), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation, and Infrastructure). The nation’s key economic sectors—industry, trade, and investment—are both contributors to and victims of climate change, making the integration of climate action an imperative for sustainable development.

Despite Nigeria’s international commitments and domestic policies, a significant gap exists in mainstreaming climate considerations into the core functions of the Federal Ministry of Industry, Trade and Investment (FMITI). This deficiency jeopardizes not only Nigeria’s environmental targets but also its economic competitiveness and its ability to meet the SDGs.

1.1 Research Problem

The central issue is the limited integration of climate action and SDG principles into the FMITI’s policy and operational frameworks. This report addresses the following questions:

• What are the primary obstacles preventing the effective mainstreaming of climate action (SDG 13) and related SDGs within Nigeria’s FMITI?
• How can these challenges be overcome to align the ministry’s functions with national and international commitments to sustainable development?

1.2 Report Objectives

This report aims to provide a strategic guide for the FMITI to:

1. Identify challenges hindering the integration of climate action into its operations.
2. Explore opportunities for leveraging climate action to advance SDG 8, SDG 9, and SDG 12.
3. Propose actionable recommendations aligned with Nigeria’s administrative context.
4. Foster collaborative efforts among stakeholders to achieve sustainable economic development in line with SDG 17.

2.0 Background and Context

2.1 Nigeria’s Role in Global Climate Commitments

Nigeria’s participation in global climate agreements directly influences its domestic policies for industry, trade, and investment, creating a framework for achieving SDG 13 and SDG 17.

• United Nations Framework Convention on Climate Change (UNFCCC): As a party since 1994, Nigeria’s commitments under the Paris Agreement, including its Nationally Determined Contributions (NDCs), aim for a 45% reduction in greenhouse gas emissions by 2030. This aligns with global efforts to achieve SDG 13.
• World Trade Organization (WTO): Nigeria’s membership involves negotiations on trade and environmental sustainability, which are crucial for promoting green technologies and aligning trade policies with SDG 12 and SDG 9.
• The African Union (AU): Through the AU’s Agenda 2063 and initiatives like the Africa Renewable Energy Initiative, Nigeria collaborates on regional strategies to advance SDG 7 (Affordable and Clean Energy) and foster sustainable development across the continent.

2.2 Geopolitical Considerations and Developmental Risks

Nigeria’s transition from a fossil fuel-dependent economy presents both risks and opportunities for its development agenda and its progress on the SDGs. The entrenched interests in the oil and gas sector create resistance to policies promoting SDG 7 and SDG 13. A poorly managed transition could threaten economic stability and exacerbate inequalities (SDG 10: Reduced Inequalities). However, a strategic shift presents an opportunity for Nigeria to become a leader in Africa’s green transition, leveraging renewable energy to enhance its geopolitical influence and drive progress towards SDG 8 and SDG 9.

2.3 Climate Finance Landscape

Accessing climate finance is essential for funding projects that support both climate action and sustainable development. Sources include international donors (Green Climate Fund), national mechanisms, and private sector investments. This financing is critical for projects that advance:

• SDG 13: Climate Action (mitigation and adaptation projects)
• SDG 7: Affordable and Clean Energy (renewable energy investments)
• SDG 9: Industry, Innovation, and Infrastructure (green infrastructure development)
• SDG 17: Partnerships for the Goals (mobilizing public and private finance)

2.4 Opportunities for SDG-Aligned Climate Action

Integrating climate action into Nigeria’s economic sectors offers numerous benefits aligned with the SDGs:

• Economic Growth and Job Creation (SDG 8): Green industries such as renewable energy and energy-efficient manufacturing can stimulate economic growth and create new employment opportunities.
• Enhanced Competitiveness (SDG 9 & SDG 12): Adopting sustainable practices and complying with international environmental standards can enhance the competitiveness of Nigerian products in global markets.
• Resilience and Risk Management (SDG 2, SDG 11, SDG 13): Climate-resilient agriculture and infrastructure can secure food production (SDG 2: Zero Hunger) and protect urban communities (SDG 11: Sustainable Cities and Communities).
• Health and Environmental Benefits (SDG 3, SDG 6, SDG 14, SDG 15): Reducing pollution improves public health (SDG 3: Good Health and Well-being) and protects ecosystems, contributing to clean water (SDG 6) and biodiversity (SDG 14 & 15).
• Green Technologies and Innovation (SDG 7 & SDG 9): Investing in green technologies fosters innovation and accelerates the transition to affordable and clean energy.
• Circular Economy (SDG 12): Promoting a circular economy reduces waste and resource consumption, advancing responsible consumption and production patterns.
• Public-Private Partnerships (SDG 17): Collaborations between public and private sectors can leverage resources and expertise to scale up climate action and achieve the SDGs.

3.0 Conceptual Framework: An Integrated Approach to Sustainable Development

To effectively mainstream climate action, the interconnectedness of industry, trade, and investment must be understood within the context of the SDGs. An integrated approach is necessary to create policy synergies that advance multiple goals simultaneously.

• Industry (SDG 9): Industrial activities are major sources of emissions but also offer significant potential for reductions through clean technologies, contributing to SDG 13.
• Trade (SDG 12): Sustainable trade policies can promote environmentally friendly goods and align global commerce with responsible consumption and production.
• Investment (SDG 7, SDG 8): Directing capital towards green technologies and climate-resilient infrastructure is crucial for funding the transition to a low-carbon economy.

Analyzing these sectors together is essential for a holistic understanding of their combined impact on the 2030 Agenda. Coordinated strategies across these domains can amplify the impact of climate action, ensuring that green investments drive industrial innovation (SDG 9), which in turn enhances sustainable trade practices (SDG 12).

4.0 Methodology

This report is based on a multi-faceted research approach designed to provide a comprehensive analysis of the policy landscape and stakeholder perspectives:

1. Policy and Document Review: Analysis of existing policies from the FMITI and other relevant ministries to identify gaps in the integration of climate and SDG objectives.
2. Institutional Framework Analysis: Examination of the FMITI’s structure and its interactions with other government and private sector entities to identify barriers and leverage points for mainstreaming climate action.
3. Stakeholder Engagement: Structured interviews with 15 key informants from government, the private sector, civil society, and donor agencies to gather diverse perspectives on challenges and opportunities.
4. Integrative Analysis: Synthesis of research findings to develop strategic and actionable recommendations tailored to Nigeria’s context, with a focus on advancing the SDGs.

5.0 Findings

5.1 Analysis of Current Policies and Initiatives

A review of Nigeria’s policies reveals a significant disconnect. While numerous policies exist to promote economic growth, and separate policies address climate change, there is limited integration between them. For example, the Trade Policy for Nigeria (2023-2027) contains minimal reference to climate issues. This policy incoherence, such as passing the Petroleum Industry Act while simultaneously releasing ambitious NDCs, creates contradictory signals and undermines a unified approach to achieving SDG 7, SDG 8, and SDG 13. While a Trade and Environment desk exists within the FMITI, low awareness and capacity at the bureaucratic level hinder its effectiveness.

5.2 Stakeholder Perspectives

Stakeholders from within and outside the FMITI recognize the importance of mainstreaming climate action but note a lack of institutional intent. Key insights include:

• Need for a Strategic Framework: Stakeholders emphasized the necessity of a framework that aligns economic objectives with environmental commitments to ensure policies are both economically viable and sustainable.
• Role of Carbon Markets: Carbon markets were identified as a pivotal tool for integrating climate considerations (SDG 13) into economic practices, providing financial incentives for industries to adopt sustainable technologies (SDG 9).
• Capacity and Awareness Gaps: A significant lack of understanding of climate change and its relevance to trade and industry exists within the ministry and among its stakeholders, impeding progress. This highlights a need for targeted education aligned with SDG 4 (Quality Education).
• Importance of Public-Private Partnerships (SDG 17): Collaboration with the private sector, such as the Nigerian Economic Summit Group (NESG), was seen as crucial for leveraging expertise and driving advocacy for climate-friendly policies.

5.3 Challenges and Barriers to SDG Integration

The primary challenges hindering the mainstreaming of climate action and the SDGs within the FMITI are:

• Policy and Governance Barriers (SDG 16):
  • Misalignment between economic goals (e.g., oil revenue) and climate objectives (SDG 13).
  • Lack of central coordination, leading to siloed efforts and conflicting policies among government agencies.
  • Weak policy enforcement and the influence of vested interests.
• Infrastructure and Technical Barriers (SDG 7 & SDG 9):
  • Inconsistent power supply and poor transportation networks increase operational costs for green initiatives.
  • Insufficient investment in renewable energy infrastructure.
• Financial Barriers (SDG 17):
  • Difficulties in accessing international and domestic climate finance due to bureaucratic hurdles and lack of technical expertise.
• Capacity and Awareness Barriers (SDG 4):
  • Low levels of climate literacy among civil servants, legislators, and the general public.
  • Insufficient institutional capacity to champion and implement climate-related policies.

6.0 Recommendations

To effectively mainstream climate action and accelerate progress on the SDGs, the following recommendations are proposed:

6.1 National Framework and Strategy Development

The FMITI should lead the development of a comprehensive national green industrial policy. This framework must align economic and environmental goals, integrating commitments under SDG 8, SDG 9, SDG 12, and SDG 13 into a cohesive strategy.

6.2 Infrastructure Improvements

The Federal Government and private sector must collaborate to:

• Invest in renewable energy infrastructure to support SDG 7 and enable sustainable industrialization (SDG 9).
• Enhance transportation networks to improve the competitiveness of green industries.
• Develop green industrial zones to attract environmentally responsible investment and promote sustainable urban development (SDG 11).

6.3 Enhancing Access to Climate Finance

To mobilize necessary funding, the FMITI, in partnership with financial institutions and international partners, should:

• Build institutional capacity to access international climate finance mechanisms, supporting SDG 17.
• Create specific green financial instruments, such as green bonds and low-interest loans, to fund projects that advance the SDGs.

6.4 Policy Enforcement and Compliance

To ensure policies are effective, the FMITI must:

• Strengthen monitoring and enforcement of climate policies, in line with SDG 16.
• Incentivize compliance through mechanisms like tax waivers for businesses that adopt sustainable practices.

6.5 Capacity Building and Awareness

A concerted effort is needed to:

• Implement tailored capacity-building programs for ministry staff and stakeholders on climate action and the SDGs (SDG 4).
• Launch public awareness campaigns to foster a culture of sustainability.
• Establish channels for continuous stakeholder engagement to ensure collaborative action (SDG 17).

6.6 Fostering Public-Private Partnerships (PPPs)

The FMITI should actively promote PPPs (SDG 17) to leverage private sector resources, expertise, and innovation for implementing climate-friendly initiatives in research, manufacturing, and infrastructure.

6.7 Innovation and Adoption of Best Practices

To accelerate progress, the FMITI should:

• Support research and innovation in green technologies and sustainable solutions (SDG 9).
• Adopt international best practices, learning from successful models like South Africa’s integration of climate action into its Department of Trade, Industry and Competition.

7.0 Implementation Framework

8.0 Conclusion

Mainstreaming climate action into Nigeria’s Federal Ministry of Industry, Trade & Investment is not merely an environmental imperative but a fundamental requirement for achieving the Sustainable Development Goals. The challenges of policy misalignment, infrastructure deficits, and capacity gaps are significant, but they are surmountable through strategic, coordinated action.

By implementing the recommendations outlined in this report—from developing a national green industrial framework to fostering public-private partnerships (SDG 17)—the FMITI can transform these challenges into opportunities. Such actions will not only mitigate climate risks (SDG 13) but also drive sustainable economic growth (SDG 8), foster innovation (SDG 9), and enhance Nigeria’s global competitiveness. A decisive and collaborative approach led by the FMITI is pivotal to steering Nigeria towards a resilient, prosperous, and sustainable future for all its citizens, in full alignment with the 2030 Agenda.

1. SDGs Addressed in the Article

The article discusses issues and proposes solutions that are directly connected to several Sustainable Development Goals (SDGs). The analysis reveals a strong emphasis on integrating environmental sustainability with economic development, which is a core principle of the SDGs. The most relevant SDGs identified are:

• SDG 7: Affordable and Clean Energy – The article extensively discusses Nigeria’s energy transition, the need for investment in renewable energy (particularly solar), and the challenges posed by an inconsistent power supply.
• SDG 8: Decent Work and Economic Growth – A key theme is that integrating climate action can stimulate economic growth, create new jobs in green industries, enhance economic competitiveness, and support the diversification of Nigeria’s economy away from oil.
• SDG 9: Industry, Innovation, and Infrastructure – The report centers on the Federal Ministry of Industry, Trade & Investment (FMITI) and calls for green industrial policies, upgrading infrastructure (transportation and energy), and fostering innovation in green technologies.
• SDG 12: Responsible Consumption and Production – The article advocates for a shift towards a circular economy, better waste management, resource efficiency, and sustainable industrial practices to reduce waste and resource consumption.
• SDG 13: Climate Action – This is the central SDG addressed. The entire article is about mainstreaming climate action into national policy, Nigeria’s commitments under the Paris Agreement (NDCs), reducing greenhouse gas emissions, and accessing climate finance.
• SDG 17: Partnerships for the Goals – The article repeatedly emphasizes the need for enhanced partnerships, including public-private partnerships (PPPs), inter-agency coordination within the government, and international cooperation to access finance, technology, and best practices.

2. Specific Targets Identified

Based on the content of the article, several specific targets under the identified SDGs can be pinpointed:

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix. The article supports this by recommending significant investments in renewable energy, particularly solar power, and promoting the Africa Renewable Energy Initiative.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The report calls for accessing international climate finance and private sector investment to develop renewable energy infrastructure.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article highlights opportunities for economic diversification away from oil dependence by investing in green technologies and sustainable industries.
   • Target 8.4: Improve progressively… global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation. This is addressed through recommendations for a circular economy, sustainable practices, and resource efficiency in industry.

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization. The proposal for a “green industrial policy” and the development of green industrial zones directly aligns with this target.
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable… with greater adoption of clean and environmentally sound technologies. The article identifies infrastructure deficits as a key barrier and recommends upgrading transport networks and adopting clean technologies in manufacturing.

4. SDG 12: Responsible Consumption and Production

   • Target 12.5: Substantially reduce waste generation through prevention, reduction, recycling and reuse. The article explicitly promotes a circular economy, better waste management systems, and recycling initiatives.

5. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article’s central argument is the need to mainstream climate action into the policies of the Federal Ministry of Industry, Trade & Investment (FMITI) to resolve policy incoherence.
   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change. The report identifies a lack of awareness and capacity as a major challenge and recommends targeted capacity-building programs for ministry staff and other stakeholders.
   • Target 13.a: Implement the commitment… to mobilize… finance… to address the needs of developing countries. The article repeatedly discusses the importance of accessing international climate finance from sources like the Green Climate Fund (GCF) and Global Environment Facility (GEF).

6. SDG 17: Partnerships for the Goals

   • Target 17.14: Enhance policy coherence for sustainable development. The article’s core problem analysis focuses on the “misalignment of objectives” and “policy incoherence” between Nigeria’s economic policies and climate commitments.
   • Target 17.16 & 17.17: Enhance… multi-stakeholder partnerships and promote effective public, public-private and civil society partnerships. The report strongly recommends fostering Public-Private Partnerships (PPPs) to leverage resources and expertise, and highlights the need for better inter-agency collaboration.

3. Mentioned or Implied Indicators

The article mentions or implies several indicators that can be used to measure progress towards the identified targets:

1. Indicators for SDG 7 & 9 (Energy & Infrastructure)

   • Investment in renewable energy: The article mentions that global investment flows are shifting to renewable energy projects and calls for Nigeria to attract such investments.
   • Development of green industrial zones: A specific recommendation is to establish these zones, the number and quality of which could be an indicator.

2. Indicators for SDG 8 (Economic Growth)

   • Creation of jobs in green industries: The article explicitly states that integrating climate strategies can create new job opportunities in sectors like renewable energy and sustainable industries.
   • Economic diversification: Progress can be measured by the reduced reliance on oil exports for revenue, a key goal mentioned in the article.

3. Indicators for SDG 12 (Responsible Production)

   • Adoption of circular economy practices: The number of businesses adopting circular practices and the development of recycling infrastructure are implied indicators.

4. Indicators for SDG 13 (Climate Action)

   • Greenhouse gas emissions reduction: The article explicitly cites Nigeria’s Nationally Determined Contributions (NDCs) commitment to a “conditional 45% reduction in greenhouse gas emissions by 2030.”
   • Climate finance mobilized: The amount of funding secured from international sources (GCF, GEF) and domestic instruments (green bonds) is a key indicator mentioned for funding the transition.
   • Institutional capacity: The number of staff trained and the establishment of new frameworks (e.g., a “Trade and Environment desk”) serve as indicators of improved capacity.

5. Indicators for SDG 17 (Partnerships)

   • Number of Public-Private Partnerships (PPPs): The report recommends promoting PPPs, and the number of agreements signed is a direct indicator mentioned in the implementation framework.
   • Policy coherence: An indicator of progress would be the revision of key documents like the “Trade Policy for Nigeria” to include substantial and aligned climate considerations, addressing the current lack of coherence.

4. Table of SDGs, Targets, and Indicators

Source: afripoli.org