FG Allocates N50bn Green Bond Proceeds To Climate Adaptation, Clean Energy, Others

The federal government through the Debt Management Office has announced the issuance of its third Sovereign Green Bond, targeting up to N50 billion in proceeds to fund environmental and infrastructure projects across the country.

Speaking on the offering which opened on Monday, June 16 and is expected to close on Wednesday, June 18, 2025, the director general of the DMO, Patience Oniha said the green bond is a pivotal component of Nigeria’s strategy to mobilise climate finance and demonstrate leadership on environmental stewardship within Africa.

Co-arranged by Chapel Hill Denham Advisory Limited and Stanbic IBTC Capital Limited, the Series III issuance is structured as a fixed-rate note with a five-year tenor. It is backed by the full faith and credit of the Federal Government of Nigeria and qualifies as a liquid asset for financial institutions a classification that makes it especially attractive to banks and institutional investors.

The bond is expected to attract domestic and international investors aligned with the green economy agenda following  the successful outings of the Series I and II Green Bonds in 2017 and 2019 respectively, both of which were oversubscribed and channelled into renewable energy, afforestation, agriculture, and clean transportation.

According to the investor presentation, proceeds from the Green Bond are expected to be deployed to a range of climate-focused projects, including N15.96 billion for climate change adaptation and mitigation initiatives under the Federal Ministry of Environment.

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Also, N15 billion is being budgeted for clean energy transition programmes under the Presidential CNG Initiative (Pi-CNG), including electric vehicle infrastructure and local gas conversion projects and N16.4 billion for water infrastructure projects, comprising the construction of new earth dams and the rehabilitation of key water supply systems.

Oniha speaking at the launch of the bond said “we are supporting the government to support the environment in the interest of all of us. Nigeria is doing something about the environment, about climate change, and this is part of that journey, because you need funding to support that initiative. It is tied to a global policy of looking after the environment, and also because Nigeria is committed to those initiatives, we would like to do more and do it consistently.”

Also speaking at the launch, Director of the Department of Climate Change, Ministry of Environment, Dr. Iniobong Awe said “Nigeria has committed to reducing emissions by 47 per cent under the Paris Agreement, with targets of 20 per cent unconditional and 45 per cent conditional reductions. Key initiatives include a climate policy from 2021 to 2030, a National Determined Contribution, and the development of green bonds for innovative financing. Sector-specific plans address agriculture, oil and gas, and energy, with notable projects like the energising education project and the BRT mass transit project. The goal is to achieve significant climate change mitigation and adaptation efforts.”

Upon completion of the offer, allotment results will be announced on June 20, with listing on both the Nigerian Exchange Limited (NGX) Sustainable Instruments Market and the FMDQ Green Exchange slated for July 7. The dual listing aims to provide transparency, liquidity, and visibility for investors looking to gain exposure to certified green assets.

Data presented by the Federal Ministry of Environment at the launch stressed the urgency of Nigeria’s green transition, as the country ranks 140th out of 180 on the Environmental Performance Index.