Nigeria launches N50bn sovereign green bond to mitigate climate change, others
The Nigerian government has launched a N50 billion sovereign green bond with the aim to accelerate climate action and sustainable development.
The Minister of Environment, Malam Balarabe Abbas Lawal, in partnership with the Debt Management Office (DMO), recently convened a high-level Investors’ Forum in Lagos to galvanize support for the Federal Government’s third sovereign green bond issuance.
The Director, Information, Federal ministry of environment, Ibrahim Haruna in a statement stated that Lawal, who represented by the Green Bond Programme Coordinator, Mr. Olaitan Fajuyitan, emphasised that the Green Bond Series III marks a critical milestone in advancing Nigeria’s climate action agenda.
According to him, the initiative underscores the Federal Government’s unwavering commitment to the Nationally Determined Contributions (NDCs) under the Paris Agreement by financing sustainable, climate-resilient projects in key sectors such as renewable energy, afforestation, and sustainable infrastructure.
The Green Bond Secretariat, which oversees the issuance process is supported by the World Bank through the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project and by the UK’s Foreign, Commonwealth & Development Office (FCDO) through the Financial Sector Deepening Africa (FSD Africa). This collaboration significantly enhances the programme’s capacity to deliver impactful climate finance solutions.
Speaking at the event, Fajuyitan highlighted that the N50 billion bond issuance will fund critical green projects aimed at mitigating climate change, advancing environmental sustainability, and fostering inclusive economic growth. “This third issuance reflects Nigeria’s unwavering dedication to addressing climate challenges while delivering tangible socio-economic benefits to communities nationwide,” he stated.
The British Deputy High Commissioner in Lagos, Mr. Jonny Baxter remarked: “This third sovereign green bond issuance reflects Nigeria’s continued commitment to financing sustainable growth through capital markets. The UK, through FSD Africa, is proud of its green bonds partnership with the Nigerian Government spanning almost 10 years. This partnership has strengthened market infrastructure, provided hands-on support to bring credible, investable bonds to market and mobilised finance for climate-aligned projects.”
The forum convened a diverse group of critical stakeholders, including representatives from the World Bank, the Office of the British High Commissioner to Nigeria, financial institutions, environmental experts, and private sector investors. Discussions focused on the investment opportunities presented by the Green Bond, its alignment with global sustainability goals, and the transparent framework for project selection and fund utilization.
Building on the success of the first two issuances, Green Bond Series III aims to finance impactful projects such as solar-powered electrification in rural communities, reforestation initiatives, and clean water systems.
The Federal Ministry of Environment reiterated its commitment to ensuring that proceeds from the bond are directed toward initiatives that deliver measurable environmental and social outcomes, supported by robust monitoring and reporting mechanisms.
