Flooding still remains a pressing issue in Nigeria, made worse by the local energy crisis and climate change. The study examined the mechanisms and institutions for increasing public awareness of climate change governance and local energy crisis with respect to flooding management with the view to promoting community participation and the private sector for the purpose of economic growth and environmental performance through policy. Engaging an instrumental case study and grounded theory design, the paper highlights the reason for an integrated approach that addresses climate change, renewable energy transition, sustainable urban planning, and adaptation. The authors maintain that a decentralised energy system is capable of improving renewable energy sources, which in turn could alleviate energy poverty and support flood resilience. Further, community engagement and participation in policy-making processes are important for efficient flood management. This study adds to the knowledge on energy policy and climate change, while it offers strategic lessons for flooding management in Nigeria.