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

Abstract

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.