In a strategic move to bolster environmentally sustainable infrastructure, the Federal Government of Nigeria, through the Debt Management Office (DMO), has introduced a ₦50 billion Green Bond offering. This new debt instrument is now open for public subscription at a unit cost of ₦1,000.
In a public announcement released on Tuesday in Abuja, the DMO detailed that the Green Bond is structured as a five-year instrument, with a maturity date set for 2030. It offers a fixed interest rate ranging between 18.75% and 19.25% per annum.
According to the statement, the offer will be available from June 16 to June 18, with a settlement date of June 23. Subscriptions begin at a minimum of ₦10 billion, and additional investments must be made in multiples of ₦1 million.
The DMO confirmed that interest (coupon) payments will be disbursed semi-annually, while the principal will be paid in full at maturity—described as a bullet repayment.
Funds raised through this green instrument will be strictly allocated to climate-resilient projects, in line with Nigeria’s Sustainable Bond Framework. These include initiatives that promote renewable energy, clean transportation, and environmentally sound waste management practices.
The bond qualifies as an approved security under Nigeria’s Trustees Investment Act and is also recognised for tax exemptions under the Company Income Tax Act and Personal Income Tax Act, making it particularly attractive for institutional investors such as pension funds.
Moreover, the DMO confirmed that the bond will be listed on both the Nigerian Exchange Limited and the FMDQ Securities Exchange Limited. Investors are advised to liaise with the designated financial advisors: Chapel Hill Advisory Limited and Stanbic IBTC Capital Limited.
This move reaffirms Nigeria’s commitment to financing its climate goals while simultaneously broadening the domestic capital market.
