The Federal Government, through the Debt Management Office (DMO), has announced the issuance of a N50 billion Sovereign Green Bond aimed at financing projects that mitigate the impact of climate change in Nigeria. At a stakeholders’ meeting in Lagos, DMO Director-General Ms. Patience Oniha revealed that the bond proceeds will be invested in renewable energy, afforestation, dam construction, and Compressed Natural Gas initiatives.
Ms. Oniha explained that the five-year bond will be benchmarked against the FGN Savings Bond and requires a minimum subscription of N10 million, with subsequent investments in multiples of N1 million. She emphasized the bond’s importance, stating, “It is tied to the global policy on Climate Change and looking after the environment because Nigeria is committed to the global agreements on Climate Change.”
Nigeria is a pioneer in Africa’s sovereign green bond market, having issued its first green bond in 2017 and a second in 2019, raising a total of N25.69 billion. These funds have been used to support renewable energy, afforestation, education, and micro-utilities. Ms. Oniha noted the government’s intention to continue issuing green bonds regularly, depending on budgetary provisions.
She also encouraged other corporations to issue green bonds to help tackle the diverse climate challenges facing Nigeria. Dr. Iniobong Awe from the Federal Ministry of Environment highlighted the urgent threat of desert encroachment in northern Nigeria and reaffirmed the government’s commitment to the Climate Change Act of 2021 and the goal of achieving Net Zero emissions by 2060.
The issuance of this green bond marks a significant milestone in Nigeria’s climate finance journey, reinforcing its dedication to sustainable development and environmental protection.