Integrating Climate Finance with Circular Economy Principles to Accelerate Clean Energy Transitions in Nigeria

The transition to clean energy in Nigeria is hindered by financing constraints, policy gaps, and reliance on a linear economic model that prioritizes resource exploitation over sustainability. This paper explores the integration of climate finance with circular economy principles as a means to accelerate Nigeria’s clean energy transition. It identifies financing gaps in Nigeria’s energy sector, examines key determinants of climate finance, and evaluates how circular economy practices can enhance access to climate finance. The study proposes a framework that aligns circular economy principles with green finance criteria to optimize resource use, reduce waste, and promote sustainable investment in renewable energy projects. By leveraging circular economy strategies such as resource efficiency, product lifecycle extension, and material recovery. Climate finance can be deployed more effectively to drive green growth, economic diversification, and environmental sustainability. The paper also reviews global and local case studies to highlight best practices and policy recommendations that can inform Nigeria’s transition towards a low-carbon and resilient energy system. Findings underscore the need for robust regulatory frameworks, increased private-sector participation, and innovative financial instruments to bridge the climate finance gap. Ultimately, this study advocates for a paradigm shift in Nigeria’s energy and financial policies, ensuring that climate finance mechanisms are designed to support circular economic activities that enhance energy security and socio-economic development.