Mrs. Patience Oniha, Director-General, Debt Management Office, DMO, reports that the Federal Government is planning to issue N10.6 billion green bonds to finance Renewable Energy projects to protect the environment. She said that the issuance of these bonds will help Nigeria meet its Paris Agreement commitments.

On March 20, Nigeria received the 2018 Green Bonds Award under the category of “New Countries Taking Green Bonds Global” at the Annual Green Bonds Conference in London, UK. The award was received by Ambassador Kabiru Bala, Deputy High Commissioner/Head of Mission, Nigeria High Commission, London.

Green Bonds are like regular bonds, but with a slight difference – they can only be used to fund projects that have been identified to have environmental benefits, with their contribution to emissions reduction clearly articulated.

“The issuance of a green bond by Nigeria delivers on Programme 47 of its Economic Recovery and Growth Plan (ERGP), in addition to meeting the expectations of Article 2 of the Paris Agreement,” said the Ambassador.

The Environment Minister of State, Usman Jibril, submitted and stated – “This further reinforces Nigeria’s re-emergence as a major player in the international climate regime and President Muhammadu Buhari’s strides in moving Nigeria to a low carbon economy.

“Nigeria takes pride in being the first African country to issue a Sovereign Green Bond and the forth in the world. Today’s event marks a unique and historic day in the efforts of Nigeria in tackling climate change.”

Nigeria’s recent issuance of the Sovereign Green Bond (or Climate Bond) apparently influenced its three-star rating in the monthly assessment of 20 countries (including the EU) with high emission levels.

The Activity, as reported, has the potential to move the country forward in fulfilling its Paris Agreement pledge, but other steps need to be taken in order for the potential to be fully realized.

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Ahmad Salihijo
Technical Assistance to the Minister of Environment
Coordinator of Green Bond Secretariat
ahmad.salihijo@gmail.com

Obi Ugochulu
Managing Partner
GCA Capital Partners
ugochuku@broadstreetlagos.com