A senior executive at Union Bank of Nigeria has urged financial institutions to view agricultural financing as a key form of climate action, arguing that increased investment in farmers could strengthen food security, improve rural livelihoods and help communities adapt to worsening climate conditions.

Speaking in a World Environment Day commentary, Mannir U. Ringim, Executive Director for Business Banking at Union Bank, said climate change is increasingly being felt first through agriculture, making access to finance critical for farmers facing unpredictable weather patterns.

“In our part of the world, agricultural finance is climate finance,” Ringim said.

His comments come as governments, businesses and environmental groups worldwide mark World Environment Day 2026, themed “Inspired by Nature. For Climate. For Our Future.”

Why It Matters

Across Nigeria and much of West Africa, farmers are grappling with delayed rainfall, prolonged droughts, severe flooding and land degradation.

According to Ringim, communities that have traditionally relied on seasonal weather patterns are finding it increasingly difficult to predict planting cycles as climate conditions become more volatile.

He argued that climate change should not be viewed solely as an environmental challenge but also as an economic and agricultural issue.

“The farmer who cannot plant because the rains failed, the trader who charges more because the harvest shrank, the young person who leaves the village because the farm no longer pays — all are responding to the same signal.”

Experts have long warned that climate-related disruptions to agriculture can drive food inflation, increase poverty and accelerate migration from rural communities.

Agriculture Remains Underserved by the Financial Sector

Despite agriculture employing millions of Nigerians and contributing significantly to economic activity, Ringim said the sector continues to receive a relatively small share of commercial bank lending.

He noted that lenders have traditionally viewed agriculture as high-risk because of its seasonal nature, limited collateral structures and vulnerability to weather-related shocks.

However, he argued that withholding capital from farmers makes climate adaptation more difficult.

“The farmer who cannot borrow cannot adapt.”

According to Ringim, farmers need financing to access drought-resistant seeds, irrigation systems, storage facilities and other technologies that can improve productivity and resilience.

New Financing Models Could Reduce Risk

Ringim said advances in agricultural finance are making the sector more attractive to lenders.

Among the approaches highlighted were:

– Value-chain financing

– Anchor borrower arrangements

– Warehouse receipt systems

– Weather-index insurance

– Mechanisation financing

– Irrigation funding

– Digital farm mapping and data-driven credit assessment

He argued that many risks associated with agriculture can be reduced through better financial design rather than simply avoiding the sector.

“Much of what we call agricultural risk is not a law of nature. It is a design problem, and design problems can be solved.”

Industry analysts have increasingly pointed to financial technology, satellite monitoring and agricultural insurance as tools capable of improving access to credit for smallholder farmers.

Climate Adaptation and Agricultural Lending Are Closely Linked

Ringim said investments that make agriculture more bankable are often the same investments needed to strengthen climate resilience.

These include:

– Irrigation infrastructure

– Improved seed varieties

– Soil restoration programmes

– Water management systems

– Agroforestry initiatives

– Post-harvest storage facilities

He said such investments help farmers withstand climate shocks while improving productivity and reducing food losses.

The executive also linked local agricultural financing to broader global climate goals, noting that climate finance should not be limited to international negotiations and carbon markets.

“Its most grounded form, for us, is the facility that enables a cooperative to drill a borehole or build a warehouse.”

Call for Public-Private Collaboration

Ringim stressed that agricultural transformation cannot be delivered by banks alone.

He called for stronger collaboration among governments, development finance institutions, insurers, agritech companies and commercial lenders.

He pointed to programmes such as the Agricultural Credit Guarantee Scheme and the Anchor Borrowers’ Programme as examples of efforts aimed at improving agricultural financing, while stressing the importance of transparency, accountability and measurable outcomes.

Development institutions, including the African Development Bank, have repeatedly identified agriculture as a critical sector for boosting economic growth and reducing poverty across the continent.

Opportunities Beyond Climate Challenges

While much of the climate discussion focuses on risks, Ringim said regions such as northern Nigeria and the wider Sahel also present significant economic opportunities.

He highlighted the area’s agricultural potential, established value chains and youthful workforce.

According to him, improved access to finance can transform agriculture from a survival strategy into a viable business opportunity, particularly for young people and women-led cooperatives.

“Agriculture stops being a fallback and becomes a future.”

Union Bank’s Position

Ringim said Union Bank increasingly views agricultural financing as part of the country’s climate resilience infrastructure.

The bank, which has operated in Nigeria for more than a century, believes financing agriculture should be regarded as a strategic investment rather than a charitable intervention.

“The most meaningful climate commitment our financial sector can make this World Environment Day is not a statement; it is a willingness to finance the land that feeds us, intelligently and at scale.”

He concluded by urging financial institutions to rethink how they allocate capital and support farmers facing the realities of climate change.

Nigeria’s retail lender, Unity Bank Plc, has called for increased investment in the green economy, warning that climate change is already reshaping livelihoods, businesses and national economies.

The call was made during an Earth Day webinar hosted by the bank, where climate experts stressed that adopting new technologies and sustainable financing models is key to building economic resilience across Africa.

Why it matters

Climate change is increasingly affecting food systems, energy access and infrastructure across the continent.

Experts say without urgent investment in renewable energy, climate technology and sustainable systems, vulnerable communities will continue to bear the greatest burden.

“An existential threat”

Speaking at the event, Unity Bank’s Head of Strategy and Innovation, Ibukun Coker, said climate change is no longer a distant concern.

“Climate change is no longer a distant or abstract challenge. It is an existential threat with direct consequences for individuals, businesses, and economies,” he said.

“At Unity Bank, we recognise the role institutions must play in incorporating sustainability in project financing, supporting businesses and promoting solutions that build resilience in communities where we operate.”

His comments reflect a growing shift among financial institutions to integrate environmental considerations into lending and investment decisions.

Unequal burden on vulnerable communities

Climate experts at the webinar highlighted how poorer communities are disproportionately affected by environmental changes.

Chinwe Udo-Davis, founder of clean energy company Instollar, said access to sustainable solutions remains uneven.

“The true cost of climate change is not evenly distributed. Communities with the least resources are often the most affected,” she said.

“Addressing this imbalance requires intentional investment in clean energy solutions that are both accessible and scalable.”

Her remarks point to the urgent need for inclusive energy systems, especially in regions facing energy poverty.

Innovation and policy must align

Oluwatosin Ajide of the Nigeria Climate Innovation Centre stressed that tackling climate change requires coordinated action across sectors.

“Climate change is fundamentally a structural problem, and its solution requires a paradigm shift: from innovation and policy to financing and implementation,” Ajide said.

“Stakeholders must work collaboratively to drive solutions that are sustainable and inclusive.”

Industry perspective

The discussions also highlighted emerging opportunities in climate technology, renewable energy and ecosystem financing.

Analysts say Africa’s green economy could unlock jobs, improve energy access and strengthen long-term economic stability if properly funded.

However, challenges such as limited financing, policy gaps and infrastructure deficits remain significant barriers.

What’s next

Unity Bank says it will continue to promote sustainability-focused initiatives and support businesses adopting environmentally responsible practices.

The lender’s push aligns with a broader trend among financial institutions seeking to balance profitability with environmental and social impact.

Nigeria has called for urgent global action on methane emissions, framing it as both a climate necessity and an economic opportunity, at a high-level science policy dialogue in Italy.

Speaking at the “Methane Action for People & Planet” event in Ispra, Director-General of the National Council on Climate Change (NCCC), Dr Omotenioye Majekodunmi, said methane mitigation must move from theory to real-world implementation.

Why it matters

Methane is one of the most potent greenhouse gases, responsible for a significant share of global warming.

Cutting methane emissions is widely seen as one of the fastest ways to slow climate change in the short term.

Dr Majekodunmi said Nigeria is aligning climate action with development goals, using methane reduction to drive clean energy expansion and economic growth.

“Methane action is not just about emissions, it is about people, prosperity, and the future of our planet.”

L-R: Mayor of Ispra Italy, DG NCCC Nigeria , Director JRC – Italy European Commision, UK Govt Deputy Director Méthane UK Energy, Environment Adviser France, Master of Ceremonies Joint Research Centre Italy

Nigeria’s climate strategy

At the dialogue, hosted by the European Commission’s Joint Research Centre (JRC), Nigeria highlighted its growing role in global climate efforts.

Dr Majekodunmi outlined three key pillars shaping the country’s methane strategy:

Strengthening measurement integrity through improved data systems

Activating carbon markets to unlock climate finance

Aligning climate action with national development priorities

She said Nigeria is already moving from satellite monitoring to enforcement on the ground, turning scientific insights into policy and economic opportunities.

From science to action

The event also marked 250 years since methane was first identified near Lago Maggiore in northern Italy.

What was once a scientific discovery has now become central to global climate policy.

Nigeria’s approach, officials said, focuses on bridging the gap between research and implementation.

This includes using data-driven tools to detect emissions and deploying policies that encourage industries to reduce their methane footprint.

Global context ahead of COP31

The discussion comes as countries prepare for COP31, where methane reduction is expected to be a major focus.

Experts say stronger commitments and measurable actions will be required to meet global climate targets.

Nigeria’s position signals a broader shift among developing countries to link climate action with economic growth and energy access.

What’s next

As global climate negotiations intensify, Nigeria is expected to expand its methane reduction initiatives through:

Stronger regulatory frameworks

Increased private sector participation

Access to international climate financing

The government says its goal is to ensure climate action delivers tangible benefits for citizens while contributing to global emission reduction targets.

Industry and public impact

For businesses, methane reduction policies could open new opportunities in carbon trading and clean technology.

For citizens, it could translate into cleaner air, improved energy systems, and job creation in emerging green sectors.