Nigeria’s Debt Management Office Rolls Out N50 Billion Green Bond

The Debt Management Office (DMO) of Nigeria has launched a N50 billion Sovereign Green Bond to finance climate-friendly projects across the country. The announcement was made by DMO Director-General, Ms. Patience Oniha, at a recent investors’ meeting in Lagos.

Ms. Oniha explained that the bond, with a five-year tenor, will fund projects including renewable energy development, afforestation, dam construction, and the expansion of Compressed Natural Gas infrastructure. She said, “It is tied to the global policy on Climate Change and looking after the environment because Nigeria is committed to the global agreements on Climate Change.”

The bond will be benchmarked against the FGN Savings Bond and requires a minimum investment of N10 million, with increments of N1 million. This issuance follows Nigeria’s earlier green bonds in 2017 and 2019, which raised N25.69 billion to support renewables, afforestation, education, and micro-utilities.

Ms. Oniha expressed the DMO’s readiness to issue green bonds regularly, subject to federal budget allocations. She also called on private sector players to issue similar green instruments to collectively address Nigeria’s climate challenges.

Dr. Iniobong Awe, Director of Climate Change at the Federal Ministry of Environment, highlighted the pressing issue of desert encroachment in northern Nigeria and reiterated the government’s commitment to the Climate Change Act of 2021 and Net Zero by 2060 target, supported by policies such as the Nigerian Carbon Market Initiative and Renewable Energy Policy.

This new green bond issuance underscores Nigeria’s commitment to mobilizing climate finance and advancing sustainable development.