The Federal Government of Nigeria has announced plans to raise $186 million from green bonds in two separate offerings before the end of the year, aiming to support its economic transformation and climate objectives.
Green bonds, which are fixed-income financial instruments, are specifically designed to raise funds for projects focused on climate mitigation, adaptation, and other environmentally sustainable initiatives.
Speaking with on Wednesday, the Minister of Environment Balarabe Abbas Lawal, revealed that the government will offer the debt in two tranches: a N50 billion ($31 million) green bond set to be issued in the next two weeks, followed by a N250 billion ($155 million) issuance in October.
Strategic Partnerships and Oversubscription Assurance
Minister Lawal emphasized that the initiative has garnered strong support from key international and domestic players. “We have the European Union, the World Bank, the Ministry of Finance, and the Debt Management Office all involved,” he said, adding, “I want to assure you that both issuances will be oversubscribed.”
Objectives of the Green Bonds
Lawal stated that the funds raised through these green bonds will be directed towards advancing key environmental projects in Nigeria. Specifically, the proceeds will be used to enhance water security, develop green mass transit, and support clean energy initiatives.
He also noted that the green bond issuance is part of the government’s broader strategy to accelerate environmental reforms, which includes national reforms, state-level coordination, and cross-border cooperation to build resilience against the impacts of climate change.
Future Plans
In addition to the immediate green bond offerings, Minister Lawal revealed that the federal government plans to issue a green dollar-denominated bond in 2026, though specific details about the bond offering have yet to be disclosed.
Nigeria’s green bond journey began in 2018, when the government issued a N10.69 billion green bond to finance capital projects within the 2018 budget. Furthermore, in December 2022, the Debt Management Office (DMO) announced plans for a green bond to finance the 2023 national budget.
With this new push for green bonds, Nigeria is setting a course toward bolstering its climate resilience and supporting sustainable growth in line with global environmental standards.
