FGN Launches N50bn Green Bond to Boost Climate Financing and Drive Sustainable Projects | THISDAYLIVE

Nigeria’s federal government is making strides in climate finance with the launch of its third Sovereign Green Bond, aiming for up to N50 billion. This bond will fund crucial environmental and infrastructure projects throughout the country.

Patience Oniha, the Director-General of the Debt Management Office, shared the news in Lagos. Investors can buy into this offer, which opened recently and will close on June 18, 2025.

There’s a lot of interest in this bond, especially since the first two Green Bonds in 2017 and 2019 were highly successful, attracting more investments than expected. Those funds supported renewable energy, afforestation, agriculture, and clean transportation initiatives.

This third issuance, co-arranged by Chapel Hill Denham and Stanbic IBTC Capital, is a fixed-rate bond that lasts five years. It is solidly backed by the Nigerian government and considered a liquid asset, making it appealing for banks and institutional investors.

The proceeds will support various projects:

• N15.96 billion for climate change adaptation and mitigation under the Federal Ministry of Environment.
• N15 billion for clean energy initiatives, including electric vehicle projects.
• N16.4 billion for water infrastructure, such as building new dams and upgrading water supply systems.

Oniha emphasized the bond’s importance in Nigeria’s efforts to lead in environmental stewardship across Africa. “We are funding initiatives that benefit everyone. Nigeria is committed to tackling climate change,” she said.

Investors will know the allotment results on June 20, and the bond will be listed later on the Nigerian Exchange Limited (NGX) and the FMDQ Green Exchange, which adds transparency and visibility for those interested in green investments.

Recent data from the Federal Ministry of Environment shows that Nigeria ranks 140th out of 180 on the Environmental Performance Index. This underscores the urgency of addressing climate issues in the country.

Dr. Iniobong Awe from the Ministry of Environment highlighted that Nigeria aims to cut emissions by 47% based on the Paris Agreement, with a mix of unconditional and conditional targets. The strategy includes a comprehensive climate policy for 2021 to 2030, sector-specific plans, and innovative financing through green bonds.

In a world increasingly focused on sustainability, Nigeria’s Green Bond initiative reflects the growing trend of climate-conscious investing. As more investors seek opportunities that align with their values, these bonds could pave the way for further environmental progress in Nigeria.

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