Director-General, Debt Management Office, DMO, Dr Patience Oniha said Nigeria is taking a significant step towards tackling climate change with the planned issuance of a N50 billion Sovereign Green Bond.
Oniha said this at an investors meeting for the Series III Sovereign Green Bond issuance Monday in Lagos.
She said the initiative aims to fund environmentally sustainable projects and reinforce the nation’s commitment to the Paris Agreement.
According to her, the offer is a continuation of Nigeria’s climate financing journey, following earlier issuances in 2017 and 2019 that raised N25.69 billion.
She noted that the five-year Green Bond would provide funding for projects that align with Nigeria’s Nationally Determined Contributions, NDCs, to reduce greenhouse gas emission.
“Today is about sensitising investors. This is the amount, this is the tenor and very importantly, this is what we intend to do with the funds.
“We must give institutional investors the opportunity to ask questions, reflect and begin their internal approval processes. This is not just fundraising; it is about our national commitment to sustainability,” she said.
The News Agency of Nigeria, NAN, reports that the five-year bond, targeted at institutional investors with a minimum investment of N10 million, will be listed on the FMDQ platform.
Oniha explained that while the bond market in Nigeria is well-developed, price discovery would remain guided by market expectations.
Also, the Director, Department of Climate Change, Federal Ministry of Environment, Dr Iniobong Abiola-Awe, emphasised the urgency and purpose behind Nigeria’s green financing drive.
“Climate change is not a distant threat, it is here and it is threatening humanity and biodiversity.
“The impact is evident in shifting weather patterns, extreme heat, disappearing harmattan, rising floods and desert encroachment.
“Nigeria is shrinking geographically and we have no planet B. What we do today is a debt or gift to the next generation,” she said.
Abiola-Awe described the Green Bond initiative as part of Nigeria’s broader framework to deliver on global climate commitments under the Paris Agreement and the UN Framework Convention on Climate Change.
She said Nigeria is committed to cutting greenhouse gas emissions by 20 percent unconditionally and up to 47 percent with international support.
“These bonds are not just financial tools, they are part of a homegrown, innovative solution to climate finance.
“Through initiatives like the 2021-2030 Climate Change Policy, Energy Transition Plan, afforestation strategies and renewable energy projects, we are building real capacity to mitigate climate impacts.
“The preparation for the issuance of this sovereign green bond underscores Nigeria’s unwavering commitment to environmental and climate action goals and initiatives, aligning perfectly with Mr President’s renewable energy agenda,” Abiola-Awe said.
She cited examples of projects supported by previous green bond issuances across various sectors including agriculture, energy and transport.
“These projects, many of which were initiated with the first issue in 2019, demonstrate our progressive movement in mitigating climate change within Nigeria.
“I strongly believe, as the director-general has emphasised, that we are on a progressive path towards achieving a great deal in mitigating climate change in Nigeria.”
She noted that proceeds from previous green bond issuances funded critical projects, including energising education initiatives in universities.
“That project improved internet access, increased study hours and ultimately, raised academic performance.
“It is not always what you see on paper, the impact is multidimensional.”
The Federal Ministry of Environment, in partnership with the Ministry of Finance, has provided policy and institutional frameworks for these issuances, which aim to support sectors such as agriculture, energy, transport and forestry.
She said, “Our progress so far, and this third issuance, reaffirm Nigeria’s commitment to consistent and sustainable financing for climate action.
“The time to act was yesterday, but what we are doing today is one of the biggest contributions we can make.”
The event also acknowledged Nigeria’s legal and transaction advisors on the Green Bond.
The Private Debt Market Makers, PDMMs, were encouraged to support the new issuance with confidence, espcially with the successful repayment of earlier bonds. NAN
