Nigeria aims to raise ₦300 billion through green bonds this year to fund climate projects like clean energy and green transport.
Experts warn that past mismanagement must be addressed, with strong oversight needed to ensure the funds support impactful projects and Nigeria’s climate goals.
Environment Minister Balarabe Lawal announced that a ₦50 billion ($31 million) bond will launch in two weeks, followed by a larger ₦250 billion offering in October.
Key stakeholders, including the EU, World Bank, and Ministry of Finance, are involved, and Lawal confidently expects both bonds to be oversubscribed.
Funding Sustainable Projects
These bonds will directly fund projects focusing on water security, green transportation, and clean energy, thus advancing Nigeria’s environmental goals.
In addition, green bonds finance sustainability by supporting energy efficiency, pollution control, and eco-friendly technologies.
Past Green Bond Issuances
Looking back, Nigeria first issued green bonds in 2017 and 2019, raising ₦10.69 billion and ₦15 billion, respectively.
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Investors oversubscribed both offerings, and Nigeria used the funds to support projects such as solar power plants and afforestation.
However, concerns about past mismanagement, particularly in Cross River State, remain.
For instance, environmental expert Greg Odogwu cautioned that without improved accountability, the ₦300 billion could face misallocation, as previous bonds failed to deliver lasting environmental benefits.
Ensuring Effective Fund Management
Therefore, Odogwu emphasized that Nigeria must adopt a multi-sectoral approach to ensure proper fund management.
He insisted that transparency and oversight from various sectors are crucial.
Additionally, he urged the private sector to play an active role in building capacity and promoting sustainability.
A Path To Net-Zero Emissions
Despite these challenges, Odogwu remains optimistic.
He believes that, if Nigeria manages the green bond effectively, it could significantly reduce the country’s carbon footprint and help achieve the goal of net-zero emissions by 2060.
Ultimately, the success of the green bond hinges on proper management and accountability.
