Leveraging Diaspora Remittances for Nigeria’s Green Transition: A Fintech-Driven Cooperative Model to Fund Renewable Energy Infrastructure

Nigeria’s ambitious Energy Transition Plan (ETP) which is currently a top-priority government policy, $410 billion to achieve the planned net-zero emissions target by 2060. But the key to success is already being hindered by a $10 billion annual funding gap. This study explores an innovative financing mechanism leveraging up to 10 per cent of Nigerian Diaspora’s $20 billion annual remittances to fund green infrastructure, focusing on the model of the private sector-inspired Nigerian Renewable Energy Village (NREV). Motivation: This study is motivated by the need to bridge Nigeria’s green financing gap using the untapped resources of diaspora capital for sustainable development. Data and Methodology: Using secondary data from the Central Bank of Nigeria, World Bank, Rural Electrification Agency (REA), the United Nations (UN), NREV project documents and reports from other authoritative sources, we propose a Green Transition Fintech capturing 10% of remittances ($2 billion/year) via fees and exchange rate margins, integrated with a Diaspora Cooperative offering dividends and carbon credits. Findings: The model could fund NREV’s $120 million solar mini-grid and EV infrastructure, electrifying 100,000+ people, creating 700+ jobs, and reducing emissions. Policy Implications and Recommendations: Regulatory reforms for Fintech and carbon markets, tax incentives for diaspora dividends, and public awareness campaigns are critical to drive adoption. The model is scalable across Africa.

Remittances, Renewable Resources, Financial Institutions (Fintech), renewable energy, Environment and Development

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