FG to Float N300bn in Green Bonds in 2025
Minister of Environment Balarabe Lawal, has disclosed that the federal government is set to issue a third and fourth tranche of green bonds totaling N300 billion ($200 million) in 2025, deepening its commitment to sustainable finance and climate-resilient infrastructure.
The upcoming offerings mark the latest step in the country’s strategy to tap into environmentally linked debt markets, even as it grapples with mounting fiscal pressures and the impact of climate change.
The issuance will be coordinated through Nigeria’s Debt Management Office (DMO), with proceeds earmarked for clean energy, sustainable agriculture, afforestation, and transport initiatives aligned with its updated Nationally Determined Contributions (NDCs) under the Paris Agreement.
The debt is expected to be offered in two separate tranches over the course of the year – N50bn scheduled in coming weeks and N250bn in October – pending regulatory approval and favorable market conditions.
The move follows Nigeria’s pioneering N10. 69 billion debut green bond in 2017—Africa’s first sovereign issuance—which was followed by a second tranche of N15 billion in 2019. Both were oversubscribed, signaling investor appetite for sustainable assets in emerging markets.
“This ₦50 billion bond being issued this month, and the ₦250 billion in October, will definitely be exhausted,” the minister stated, speaking during the 7th Ministerial briefing in Abuja.
According to him, the green bond is part of government’s strategy of accelerating environmental agenda, implemented through a mix of national reforms, state-level coordination, and cross-border cooperation aimed at building resilience against climate change.
He noted that one of the administration’s first interventions was halting a gas fire that had raged for four years, devastating local ecosystems.
“That fire had been burning for four years—destroying the environment and the lives of people in that area. It was only after we came in that steps were taken to address it,” Lawal said.
He said since taking office, the president Tinubu-led administration has mandated year-ahead planning for all ministries to ensure compliance with Environmental Impact Assessments (EIAs)—a process often bypassed in the past.
“Every project must go through environmental analysis to ensure it does not harm local communities or ecosystems,” he said.
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Lawal praised the National Environmental Standards and Regulations Enforcement Agency (NESREA) for renewed efforts in policy enforcement. “We now have people genuinely committed to doing things the right way,” he stated, highlighting major achievements of his ministry since assumption of office.
The government is also prioritising climate education and has formalised a federal-to-state agreement to implement the National Climate Change Policy, approved by the Federal Executive Council (FEC) in April 2024. The plan targets deforestation, particularly in rural areas, and seeks to integrate climate awareness across local governance.
Health risks from indoor pollution are also being spotlighted, Lawal noted, citing a doctor who warned that cooking with firewood exposes women to smoke equivalent to four cigarette packs per meal—a stark reminder of the urgent need for cleaner energy solutions.
On the international front, Nigeria is engaging with the World Bank’s West Africa Coastal Areas (WACA) initiative to combat coastal erosion, flooding, and pollution.
A national framework involving seven coastal states is in development, focusing on resilience, pollution control, and ecosystem restoration.
Another World Bank-backed program, the Sustainable Procurement, Environmental and Social Standards Enhancement (SPESSE) Project, is being led by the Ministry of Environment to build institutional capacity across public and private sectors.
In a bid to drive green industry and diversify the economy, he said the ministry has launched a bamboo processing initiative in Kogi state and is conducting feasibility studies for additional sites across seven other states. The project supports the sustainable bamboo and rattan industry while addressing deforestation.
“Forests are vital for conserving biodiversity and supporting livelihoods,” Lawal noted, highlighting interventions to tackle illegal logging and unsustainable farming.
Regionally, Nigeria signed a cooperation agreement with Cameroon in April 2024 to jointly manage transboundary ecosystems, including the Cross River and Korup national parks—both critical biodiversity zones. The agreement aims to improve conservation, manage shared water resources, and strengthen climate resilience in border communities.
According to Lawal, the broader objective of these initiatives is to enhance the resilience of vulnerable communities, particularly those in Nigeria’s dryland regions, to the impacts of climate change and climate variability.
