Balarabe Abbas Lawal, minister of environment, Nigeria
The federal government says there are plans to raise $186 million from green bonds in two separate offerings before the end of the year to support its economic transformation and climate goals.
Green bonds are fixed-income, liquid financial instruments used to raise funds dedicated to climate mitigation, adaptation and other environment-friendly projects.
Balarabe Abbas Lawal, minister of environment, spoke to Bloomberg on Wednesday.
He said the debt, expected to be offered in two separate tranches, includes a N50 billion ($31 million) green bond to be issued within the next two weeks, and a N250 billion ($155 million) issuance in October.
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“We have the European Union involved, we have the World Bank involved, we have the ministry of finance and Debt Management Office involved,” Lawal said.
“I want to assure you that both issuances will be oversubscribed.”
According to Lawa, the green bond is part of the government’s 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.
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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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