The Federal Government is finalising arrangements to raise about N25 billion through its third green bond issuance.
This was revealed by the Minister of Environment, Dr. Mohammad Abubakar, during a courtesy visit to the Nigerian Stock Exchange (NSE) in Lagos.
Nigeria had issued its maiden green bond of N10.69 billion in 2017 and followed this with second issuance of N15 billion in 2019.
Abubakar said the government was planning a bigger issuance under the third series to accommodate more projects as it continues to seek ways of improving sustainable growth.
“We want to embark on more projects that are climate sensitive that will help in eliminating climate problems,” Abubakar said.
He outlined that the net proceeds of the green bond will be used to finance power, aforestation, deforestation, water, energy and agriculture among other projects saying that government was moving towards smart agricultural production to produce more foods with minimal impact on the environment.
According to him, the third green bond will further demonstrate government’s commitment to the reduction of greenhouse gas emissions by 20 per cent unconditional and 45 per cent conditional by 2030, as outlined under the Paris Agreement signed on September 21, 2016.
He pointed out that green bond and climate change are the defining issues of today and the future.
“Green project are what we need today because of the climate issue we as a country is facing, we need to change our environment through solid waste management, turning waste to wealth, wasting to resources, these are all the things we need green bond to finance,” Abubakar said.
The Federal Government had in December 2017 launched Nigeria’s maiden sovereign green bond as part of efforts to diversify government revenue and deepen the domestic capital market.
Nigeria’s first sovereign green bond was oversubscribed by about N100 million as investors staked N10.791 billion on the N10.69 billion maiden bond.