To support financing for environmental projects including afforestation and renewable energy, among other things, the Federal Government plans to issue a third green bond, priced at either N50 billion or N60 billion.
Debt instruments called “green bonds” are intended to fund eco-friendly initiatives. The green bond will be released before the end of 2024, according to Dr. Iziaq Salako, Minister of State for the Environment, who made this announcement in an exclusive interview with our correspondent.
The green bond is valued between N50 and N60 billion. He said, “I’m extremely certain that the issuance will be completed by the end of the year.
The first-ever N10.69 billion green bond with a five-year duration was released by the federal government in 2017 to finance renewable energy development initiatives. Nigeria is the first nation in Africa to undertake such an endeavor, with the first issue being issued successfully in 2017. The government announced the issue of up to N15 billion in green bonds in 2019.
The Securities and Exchange Commission gave its approval for the Nigerian Exchange Limited to launch the impact board for listing sustainability instruments recently.
This project was unveiled at the 8th Green Bond Advisory Group Meeting and honored by Environment Minister Balarabe Lawal at a gong ceremony held in Lagos.
This collaboration aims to leverage the capital market to fund green projects and promote sustainability and environmental protection. The Chairman, NGX Group, Umar Kwairanga, disclosed that SEC was set to launch an N20 billion green bond to combat climate change and improve environmental resilience.
Kwairanga stated, “The $1 trillion economy will be achieved. We welcomed a state government earlier, and we are about to launch N20bn to support the green bond economy in collaboration with a state governor.
“We will raise the issue of the sovereign green bond. The Nigerian capital market, under the guidance of the SEC, is up to the task, and the issue of paper is gone.”
On his part, Lawal underscored the urgent need for funding to address environmental challenges such as flooding, pollution, and health crises.
“We all know what our environment is going through, such as floods in Lagos and the north. We need funding for these issues. We want to join hands with the stock exchange to make this an annual event and address these critical issues,” Lawal said.
In April, the minister noted that mobilising more financial inflow for environmental sustainability was essential because it would allow for the application of resources toward projects and initiatives to protect and preserve the environment.
“As we are aware, environmental financing is a capital necessity. Mobilizing more financial inflows for management is a need even for innovative financing mechanisms such as the green bond, and I think we are almost there.
“We’ve been on it for a very long time. I believe that in the next few months we are going to issue the third green bond,” the minister stated.
