Minister announces N60bn third green bond issuance by FG
By Esther Agbo
The Federal Government is preparing to issue a third green bond worth between N50 billion and N60 billion to support environmental financing, afforestation, and renewable energy projects.
Green bonds are debt instruments intended to finance projects with environmental benefits.
The Minister of State for Environment, Dr. Iziaq Salako revealed that the bond would be issued by the end of 2024. He said, “The green bond is about N50 billion to N60 billion. I hope that before the end of the year, I’m very positive that the issuance will be done.”
Nigeria’s first green bond, valued at N10.69 billion with a five-year tenor, was issued in 2017 to fund renewable energy projects, making Nigeria the first African country to launch such an initiative. The second issuance in 2019 raised up to N15 billion.
Recently, the Nigerian Exchange Limited (NGX) introduced the impact board for listing sustainability instruments, approved by the Securities and Exchange Commission (SEC).
This initiative was announced during a closing gong ceremony in Lagos, honouring Minister of Environment Balarabe Lawal and marking the 8th Green Bond Advisory Group Meeting. The collaboration aims to leverage the capital market for green projects and promote sustainability.
NGX Group Chairman, Umar Kwairanga, disclosed that SEC plans to launch a N20 billion green bond to combat climate change and enhance environmental resilience.
Kwairanga said, “The $1 trillion economy will be achieved. We welcomed a state government earlier and we are about to launch N20bn to support the green bond economy in collaboration with a state governor.
“We will raise the issue of the sovereign green bond. The Nigerian capital market under the guidance of the SEC is up to the task, and the issue of paper is gone.”
Minister Lawal emphasised the urgent need for funding to tackle environmental challenges such as flooding, pollution, and health crises.
He stated, “We all know what our environment is going through, such as floods in Lagos and the north. We need funding for these issues. We want to join hands with the stock exchange to make this an annual event and address these critical issues.”
In April, Lawal highlighted the necessity of increasing financial inflows for environmental sustainability to apply resources toward projects and initiatives that protect and preserve the environment.
He said, “As we are aware, environmental financing is a capital necessity. Mobilising more financial inflows for management is a need even for innovative financing mechanisms such as the green bond, which I think we are almost there.
“We’ve been on it for a very long time. I believe that in the next few months we are going to issue the third green bond,” the minister had stated.
