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Nigeria Enacts Landmark Climate Law: 30% of Oil Revenues to Fund Resilience and Just Transition

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In a historic legislative milestone, Nigeria’s Senate on passed the National Climate Adaptation and Just Transition Act by a decisive vote of 87 in favor to 12 opposed, following unanimous approval by the House of Representatives three days earlier. The law—now headed to President Bola Ahmed Tinubu for signature—mandates that 30% of all federal revenues derived from oil and gas extraction be channeled annually into a newly created Climate Resilience Fund, marking the first time in West Africa that fossil fuel profits are legally bound to climate justice and community-led adaptation.

The legislation responds directly to escalating environmental crises across Nigeria’s diverse ecological zones. In the Niger Delta, recurrent flooding has displaced over 1.2 million people since 2020, while coastal erosion threatens entire communities. In the North, prolonged droughts and desertification have decimated smallholder farms, pushing food insecurity to critical levels. Meanwhile, rural areas nationwide remain largely off-grid, with less than 45% of households having reliable electricity access.

Under the new law, the Climate Resilience Fund will prioritize four core areas:

  1. Flood mitigation and wetland restoration in the Niger Delta and Southeast;
  2. Drought-resistant agriculture and water-harvesting infrastructure in the Sahel-facing states of Borno, Yobe, Kano, and Sokoto;
  3. Decentralized solar microgrids to power health clinics, schools, and small enterprises in underserved rural communities;
  4. Retraining and economic diversification programs for workers in the oil, gas, and coal sectors as Nigeria gradually transitions toward cleaner energy.

Critically, the Act embeds equity at its core. It establishes a 15-member National Climate Oversight Council, with five seats constitutionally reserved for representatives of youth organizations, women’s cooperatives, and Indigenous communities—including Ogoni, Ijaw, and Fulani groups historically marginalized in national resource decisions. The council will have auditing authority, public reporting obligations, and the power to recommend fund reallocations based on community impact assessments.

“This is not charity—it is reparative justice,” said Senator Amina Bello (Kaduna Central), one of the bill’s lead sponsors, during Tuesday’s floor debate. “For decades, oil wealth flowed out of our soil while our people bore the pollution, the floods, and the fires. Today, we say: let that wealth heal what it harmed.”

The law also requires the Ministry of Finance to publish quarterly disbursements from the fund, with independent verification by the Office of the Auditor-General and civil society monitors accredited by the Economic and Financial Crimes Commission (EFCC).

President Tinubu has 30 days to sign the bill into law under Section 58(2) of the Nigerian Constitution. While his office has not issued a formal position, sources within the Presidency indicate strong support, citing alignment with Nigeria’s updated Nationally Determined Contribution (NDC) under the Paris Agreement and the administration’s “Renewable Energy for All” agenda.

International observers have hailed the move. The Climate Policy Initiative Africa called it “a transformative model for petrostates seeking equitable decarbonization,” while the African Union’s Climate Envoy noted that Nigeria’s approach could inspire similar legislation in Angola, Gabon, and Equatorial Guinea.

For millions of Nigerians—from fisherfolk in Bayelsa to farmers in Adamawa—the law represents more than policy. It is a promise that the nation’s vast subsoil wealth will finally serve those who live above it.

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