Nigeria plans to raise about $1 billion (approximately N1.5 trillion) through a domestic green bond issuance this year as part of efforts to mobilise private capital and reduce pressure on public finances.
The Minister of Environment, Balarabe Abbas Lawal, disclosed that the Federal Government is working with the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, to structure the transaction and attract participation from institutional investors.
The proposed green bond issuance builds on Nigeria’s previous engagements in sustainable finance and highlights increasing efforts by African governments to leverage local capital markets to fund climate-related initiatives.
According to Lawal, proceeds from the bond are expected to be channelled into projects that promote environmental sustainability and strengthen climate resilience across the country, aligning with Nigeria’s broader climate action and development goals.
The move comes amid rising financing needs for climate adaptation and mitigation, as governments across the continent explore innovative funding mechanisms to support long-term environmental and economic stability.