The Federal Government has announced plans to raise $186 million through two green bond offerings by the end of 2024 to support its economic and climate goals.
Green bonds are fixed-income financial instruments that fund environmental projects, including renewable energy and climate adaptation initiatives.
Balarabe Abbas Lawal, the Minister of Environment, confirmed the plan in a Bloomberg interview on Wednesday.
The first tranche, a N50 billion ($31 million) green bond, will be issued within the next two weeks, followed by a larger N250 billion ($155 million) offering in October. The proceeds will advance Nigeriaโs clean energy transition and broader sustainability agenda.
โWe have the European Union involved, we have the World Bank involved, we have the ministry of finance and Debt Management Office involved,โ Lawal said.
โI want to assure you that both issuances will be oversubscribed.โ
According to Lawa, the green bond is part of the governmentโs strategy of accelerating the environmental agenda, implemented through a mix of national reforms, state-level coordination, and cross-border cooperation aimed at building resilience against climate change.
The minister said the funds raised will support water security, green mass transit, and clean energy projects.
Lawal also said the federal government plans to issue a green dollar-denominated bond in 2026, though details of that offer are yet to be made public.
The federal government had issued a N10.69 billion green bond to finance capital projects in the 2018 budget.
On December 5, 2022, the DMO said the government would issue a green bond to finance the 2023 budget.
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