By Oladosu Adebola Oluwaseun
Nigeria is poised to significantly bolster its green initiatives and climate action efforts with the announcement of a substantial N300 billion Sovereign Green Bond issuance slated for 2025. Environment Minister Balarabe Abbas Lawal unveiled these ambitious plans at the eighth Ministerial Press Briefing in Abuja, signaling a renewed commitment to environmentally sustainable development. The proposed issuances, spearheaded by the Debt Management Office (DMO), comprise an initial N50 billion bond expected in late May, followed by a larger N250 billion offering in October. This move underscores Nigeria’s ambition to leverage green finance to address pressing environmental challenges and align with its commitments under the Paris Agreement.
This upcoming issuance builds upon Nigeria’s pioneering role as the first African nation to tap into the green bond market. The country successfully issued a N10 billion Sovereign Green Bond in 2017, followed by a second N15 billion bond in 2019. The experience gained from these earlier ventures will undoubtedly inform the structure and execution of the significantly larger N300 billion offering. The proceeds from these bonds are earmarked for a range of crucial projects spanning clean energy, sustainable agriculture, afforestation, and sustainable transportation. These sectors are pivotal in Nigeria’s journey towards a greener and more resilient future, directly addressing key areas outlined in its Nationally Determined Contributions (NDCs) under the Paris Agreement.
Minister Lawal emphasized the strategic importance of these financial instruments in driving tangible environmental progress. He highlighted several ongoing initiatives that align with the intended use of the green bond proceeds. A notable achievement cited was the resolution of a long-standing four-year gas flare incident that had been causing significant ecological damage and impacting the livelihoods of the local population. Minister Lawal’s impassioned statement, “Before we came, the gas was burning for four years. Four years! That fire had been burning, destroying the ecosystem, destroying the livelihood of the people of that area,” underscored the urgency and impact of such environmental issues and the government’s commitment to addressing them.
Furthermore, Minister Lawal stressed the government’s unwavering commitment to rigorous environmental impact assessments (EIAs) for all development projects. He asserted, “No government ministry or department can undertake any project without going through a year ahead,” indicating a proactive and systematic approach to mitigating potential environmental risks associated with infrastructure and development. This emphasis on EIAs demonstrates a commitment to sustainable development principles, ensuring that economic progress is not achieved at the expense of environmental integrity.
The briefing also shed light on Nigeria’s active participation in regional and international environmental initiatives. The West Africa Coastal Areas (WACA) programme, supported by the World Bank, was highlighted as a crucial effort to assist Nigeria’s seven coastal states in combating the growing threats of coastal erosion and flooding – challenges exacerbated by climate change. The WACA programme exemplifies a collaborative approach to addressing transboundary environmental issues and building resilience in vulnerable regions.Complementing this, the Sustainable Procurement, Environmental and Social Standards Enhancement (SPESSE) project was presented as a strategic initiative aimed at enhancing Nigeria’s capacity for adopting and implementing sustainable practices across various sectors. By focusing on procurement standards and integrating environmental and social considerations into decision-making processes, the SPESSE project aims to foster a culture of sustainability within government and beyond.
In a move towards promoting sustainable resource management and economic diversification, Minister Lawal detailed the establishment of a bamboo development factory in Kogi State. This initiative not only offers opportunities for economic growth and job creation but also leverages the environmental benefits of bamboo as a fast-growing and versatile resource. Feasibility studies are also underway for the establishment of seven additional bamboo factories across Ogun, Cross River, Kaduna, Edo, Benue, Ekiti, and Taraba states, indicating a nationwide vision for harnessing the potential of bamboo for sustainable development.
Forestry management and conservation efforts were also prominently featured in the briefing. Minister Lawal announced the handover of 11 containers of confiscated logs by the Nigeria Customs Service, demonstrating a commitment to combating illegal logging and protecting Nigeria’s forest resources. The government is also actively promoting agroforestry projects, which integrate trees and shrubs into agricultural landscapes, offering multiple benefits such as soil conservation, carbon sequestration, and enhanced biodiversity.
Furthermore, Nigeria is actively involved in the Trans-African initiative against desertification, recognizing the interconnectedness of environmental challenges across the continent. The launch of a national tree-planting campaign underscores the importance of reforestation and afforestation in mitigating climate change, combating land degradation, and enhancing ecosystem services. Nigeria’s participation in forest carbon projects under the REDD+ (Reducing Emissions from Deforestation and Forest Degradation) programme further demonstrates its commitment to leveraging market-based mechanisms to achieve climate mitigation goals.
Recognizing the crucial role of education and awareness in fostering a sustainable future, Minister Lawal highlighted the Federal Executive Council’s approval of a national climate change policy on April 24, 2024. This policy aims to mainstream climate action across all sectors and promote climate literacy among citizens. Minister Lawal emphasized the need for behavioral change, stating, “The kind of thing we do now, particularly in rural areas, depletes our forests,” underscoring the importance of public awareness and sustainable practices in protecting Nigeria’s natural heritage.Minister of Information Mohammed Idris, who hosted the press briefing, reiterated the government’s commitment to transparency, accountability, and public engagement in its environmental endeavors. He assured the public that all ministers would address the nation before Democracy Day 2025, further emphasizing the government’s dedication to open communication and public trust.
The planned issuance of the N300 billion Sovereign Green Bonds represents a significant step forward in Nigeria’s commitment to sustainable development and climate action. By channeling funds towards clean energy, sustainable agriculture, afforestation, and transport projects, Nigeria is not only addressing its environmental challenges but also paving the way for a greener and more resilient economy. This ambitious financial undertaking, coupled with the government’s focus on rigorous environmental assessments, regional collaborations, sustainable resource management, and climate education, signals a comprehensive and determined approach to building a sustainable future for Nigeria and contributing to global climate goals. The success of these bond issuances will be crucial in unlocking the necessary capital to implement Nigeria’s ambitious environmental agenda and solidify its position as a leader in green finance within the African continent.
