The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced the issuance of a N50 billion Sovereign Green Bond aimed at financing environmentally sustainable projects across the country. The announcement was made by the Director-General of the DMO, Ms. Patience Oniha, during a stakeholders’ meeting held in Lagos on Monday, June 16, 2025.
Ms. Oniha explained that the proceeds from the five-year bond would be channeled into critical climate-friendly initiatives such as renewable energy, afforestation, dam construction, and the development of Compressed Natural Gas (CNG) infrastructure nationwide. “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,” she said.
The bond, which will be benchmarked against the FGN Savings Bond traded in Nigeria’s capital market, requires a minimum subscription of N10 million, with additional investments in multiples of N1 million. This issuance continues Nigeria’s pioneering role in Africa’s green finance market, following earlier sovereign green bonds issued in 2017 and 2019 that raised N25.69 billion. According to Ms. Oniha, the funds from these previous issuances supported renewable energy, afforestation, education, and micro-utilities.
The Director-General emphasized the government’s commitment to regularly returning to the market with green bonds, contingent on federal budget provisions. She also encouraged private sector companies to issue similar green instruments to collectively address climate change challenges confronting Nigeria.
Dr. Iniobong Awe, Director of Climate Change at the Federal Ministry of Environment, highlighted the urgency of the issue, noting the real threat of desert encroachment in Northern Nigeria affecting both people and livestock. She reaffirmed the government’s dedication to the Climate Change Act of 2021 and the Net Zero by 2060 goal, supported by initiatives like the Nigerian Carbon Market and the National Council on Climate Change.
This latest bond issuance is part of Nigeria’s broader strategy to mobilize domestic and international climate finance to scale up mitigation and adaptation efforts, reinforcing the nation’s commitment to sustainable development and environmental stewardship.
