FG plans N500bn green bond issuance in 2026 to fund climate projects
The Federal Government of Nigeria plans to raise up to ₦500 billion through the issuance of green bonds in 2026 as part of efforts to secure alternative financing for climate-related and environmental projects.
The Minister of Environment, Balarabe Abbas Lawal, disclosed this on Tuesday during the Abu Dhabi Sustainability Week, according to a Bloomberg report.
Lawal disclosed that proceeds from the proposed green bond issuance would be channelled into projects aimed at improving air quality, expanding access to clean cooking fuels and tackling deforestation across the country. He noted that the initiative aligns with Nigeria’s climate commitments and broader environmental sustainability goals, while also taking advantage of growing global investor appetite for green and sustainable finance instruments.
The planned issuance highlights Nigeria’s increasing reliance on climate-linked debt instruments to diversify funding sources beyond oil revenues and conventional borrowing. It also comes amid rising global demand for climate-focused assets, with countries such as Saudi Arabia and Hungary adopting similar financing models to support environmental and infrastructure development.
For Nigeria, which is currently implementing fiscal reforms, green bonds provide an avenue to finance climate and infrastructure projects without excessive dependence on traditional debt or volatile oil revenues, the country’s main source of foreign exchange.
Climate financing has become increasingly critical for Nigeria as it grapples with environmental challenges including air pollution, deforestation and limited access to clean energy. Green bonds allow the government to attract environmentally focused investors while funding projects with both economic and environmental benefits.
Nigeria has previously recorded strong investor demand for its green bond offerings. A ₦50 billion green bond issued last year was oversubscribed, attracting more than twice the amount on offer, while the country’s inaugural sovereign green bond was fully subscribed, reflecting sustained investor confidence in Nigeria’s climate-linked debt instruments.
Green bonds are typically dedicated to projects with measurable environmental benefits, helping to enhance transparency and accountability in public spending.
