Nigeria’s transition toward a low-carbon economy requires a financing architecture capable of mobilizing capital at scale while maintaining fiscal and developmental balance. This article examines the evolution of green finance in Nigeria, focusing particularly on green bonds, sustainability-linked loans, and blended finance, as instruments driving the country’s energy transition. It critiques the fragmented nature of existing legal and institutional frameworks, including the Climate Change Act 2021, SEC Green Bond Rules, and Central Bank sustainability guidelines, arguing that their limited integration undermines effectiveness and investor confidence. The article contends that Nigeria’s progress depends on the creation of a coherent green finance framework that aligns fiscal policy, financial regulation, and climate targets. It concludes by proposing pathways for reform, including the development of a national green taxonomy, and the institutionalization of sustainability in public finance. By bridging policy ambition with financial innovation, Nigeria can position itself as a continental leader in green capital mobilisation and in the just transition toward a resilient, low-carbon future.