In a landmark step towards environmental sustainability, the Debt Management Office (DMO) has launched a ₦50 billion Series III Sovereign Green Bond to fund climate-friendly projects in Nigeria. The bond supports initiatives in climate change adaptation, clean energy, afforestation, and sustainable agriculture, aligning with Nigeria’s commitments under the Paris Agreement.

DMO Director-General, Ms. Patience Oniha, announced the bond at an event in Lagos, noting that the 5-year fixed-rate instrument builds on the success of earlier green bond issuances in 2017 and 2019. She highlighted improved economic indicators and stronger investor confidence following Nigeria’s credit rating upgrades by Fitch, Moody’s, and S&P in 2025.

Despite rising public debt, now at ₦74.38 trillion, Oniha stated that funds are being strategically invested in productive sectors. She emphasized the urgency of environmental action, citing rising desertification in northern Nigeria, significant waste generation, and Nigeria’s position as the 7th largest greenhouse gas emitter globally due to gas flaring.

The Series III Green Bond allocations include:

₦15.96 billion for climate adaptation and mitigation projects via the Federal Ministry of Environment.

₦15 billion for clean energy transition projects through Pi-CNG, focusing on CNG vehicle conversion and electric vehicle promotion.

₦16.395 billion for water resource projects, including the construction and rehabilitation of earth dams and water supply infrastructure.

Ms. Oniha also noted Nigeria’s pioneering status as the first African country to issue a sovereign green bond, with the first issuance in 2017 (₦10.69bn) and a second in 2019 (₦15bn), both of which were oversubscribed and used to fund projects in renewable energy, forestry, and transportation. These bonds have led to substantial carbon emission reductions and the creation of thousands of jobs.

Dr. Iniobong Abiola-Awe, Director at the Department of Climate Change, emphasized that the bond supports Nigeria’s goal to cut carbon emissions by 20% unconditionally and 45% with international support by 2030, under the country’s Nationally Determined Contributions (NDCs).

Elizabeth Ekpenyong of the DMO and Ayo-Oluwa Aderibigbe of Stanbic IBTC reaffirmed the bond’s role in protecting the environment while promoting economic growth. The bond will be listed on NGX and FNBQ, with a minimum subscription of ₦10 million and increments of ₦1 million.