- Nigeria plans to issue a ₦50 billion Sovereign Green Bond to fund climate-friendly projects and advance its commitments under the Paris Agreement.
- DMO Director-General Patience Oniha and climate officials emphasised that the bond will support critical sectors like energy, transport, and agriculture.
Nigeria is taking a bold step toward addressing climate change with the planned issuance of a ₦50 billion Sovereign Green Bond, which will fund environmentally sustainable projects across the country.
Director-General of the Debt Management Office (DMO), Dr. Patience Oniha, announced this on Monday, June 16, 2025, during an investors’ forum in Lagos for the Series III Green Bond. She described the initiative as a continuation of Nigeria’s climate finance journey, following the successful issuances in 2017 and 2019 that raised a combined ₦25.69 billion.
“This bond is more than just a fundraising tool. It clearly expresses Nigeria’s ongoing commitment to the Paris Agreement,” Oniha stated. “Today is about sensitising investors. This is the amount, the tenor, and importantly, what we intend to do with the funds.”
The five-year Green Bond, set to be listed on the FMDQ platform, will specifically support projects that align with Nigeria’s Nationally Determined Contributions (NDCs) to cut greenhouse gas emissions. The bond, targeted primarily at institutional investors, requires a minimum subscription of ₦10 million.
Although Nigeria boasts a mature bond market, Oniha noted that price discovery would depend on prevailing market expectations. She also underscored the importance of engaging institutional investors early to allow time for internal evaluations and approvals.
In a related address, Dr. Iniobong Abiola-Awe, Director at the Department of Climate Change, Federal Ministry of Environment, stressed the urgency of the green financing push.
“Climate change is not a distant threat—it is here, disrupting our weather, economy, and lives,” she said. “From disappearing Harmattan to severe floods and desert encroachment, Nigeria is shrinking geographically, and we have no planet B.”
She described the Green Bond initiative as part of a broader national framework under the Paris Agreement and the UN Framework Convention on Climate Change, with Nigeria pledging to cut greenhouse gas emissions by 20% unconditionally and up to 47% with international assistance.
“These bonds are more than financial tools; they are part of a homegrown, innovative solution to climate finance,” she noted. “With the 2021–2030 Climate Change Policy, the Energy Transition Plan, and afforestation strategies, we’re building real capacity to adapt and mitigate.”
Abiola-Awe highlighted the impact of earlier green bond projects, citing initiatives in the agriculture, energy, and transport sectors. One standout example was the “Energising Education” project, which improved power access in universities, enhanced internet connectivity, and boosted academic performance.
She also emphasised the role of institutional collaboration. “The Federal Ministry of Environment, in partnership with the Ministry of Finance, has built the frameworks that make these bonds credible and effective,” she said.
Looking ahead, both Oniha and Abiola-Awe reaffirmed Nigeria’s commitment to sustainable, long-term financing for climate action. They noted that the successful repayment of previous green bonds should instil confidence in investors and Private Debt Market Makers (PDMMs) supporting the new issuance.
“The time to act was yesterday,” Abiola-Awe concluded. “But what we are doing today remains one of the most impactful contributions to our future.”