Lagos State government yesterday signed a Memorandum of Understanding (MoU) with FMDQ Group and Financial Sector Deepening Africa to raise bond for the Lagos Green Bond Market Development Programme expected to range between N25 billion to N100 billion.
Speaking at a brief ceremony to flag-off the commencement of the framework for managing the bond, Lagos State Governor Babajide Sanwo-Olu lamented that climate change, though affecting everyone is expected to hit developing countries the hardest, especially low-lying states such as Lagos.
He, however, noted that despite its devastating effects, “climate change is being increasingly viewed as a gateway to new business opportunities, opening many profitable ways for investors to help protect the planet. One such way is through Green Bonds.”
Sanwo-Olu said, “Lagos State is particularly mindful of the effects of climate change and, as such, has shown and continues to show its commitment to achieving the Sustainable Development Goals (SDGs), a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.
“To achieve these lofty goals however, funding is required – far in excess of what the state can currently generate – and very urgently. The financial sector will therefore need to play a vital role in accelerating the local market’s ability to provide the required support, by expanding to green lending as an alternative source of funding for financing eligible green projects and assets in Lagos State.
“That is what we see here today, and I heartily commend and thank our partners, the Financial Center for Sustainability (FC4S), FMDQ and FSD Africa, funded by the UK Government, who are supporting this development programme.
Also speaking the chief executive officer of FMDQ Group, Bola Onadele-Koko said the firm is proud to partner the state towards addressing climate and environmental challenges through the bond.
He noted that the bond would stimulate economic growth, create jobs and align the Governor Babajide Sanwo-Olu’s THEMES agenda with achieving the Sustainable Development Goals (SDGs) as highlighted by the United Nations.