Patience Oniha, director-general of the DMO, says Nigeria is taking a significant step in tackling climate change with the planned issuance of a N50 billion sovereign green bond.

Ms Oniha said this at an investors’ meeting for the Series III Sovereign Green Bond issuance on Monday in Lagos.

She said the initiative aimed to fund environmentally sustainable projects and reinforce the nation’s commitment to the Paris Agreement.

According to her, the offer is a continuation of Nigeria’s climate financing journey, following earlier issuances in 2017 and 2019 that raised N25.69 billion.

She said the five-year green bond would provide funding for projects aligned with Nigeria’s nationally determined contributions (NDCs) to reduce greenhouse gas emissions.

The five-year bond, targeted at institutional investors with a minimum investment of N10 million, will be listed on the FMDQ platform.

Ms Oniha explained that while the bond market in Nigeria is well-developed, price discovery would remain guided by market expectations.

Also, Iniobong Abiola-Awe, director of the department of climate change, Federal Ministry of Environment, emphasised the urgency and purpose behind Nigeria’s green financing drive.

“Climate change is not a distant threat; it is here, and it is threatening humanity and biodiversity.

“The impact is evident in shifting weather patterns, extreme heat, disappearing Harmattan, rising floods, and desert encroachment.

“Nigeria is shrinking geographically, and we have no planet B. What we do today is a debt or gift to the next generation,” she said.

Ms Abiola-Awe described the green bond initiative as part of Nigeria’s broader framework for delivering on global climate commitments under the Paris Agreement and the UN Framework Convention on Climate Change.

She said Nigeria was committed to cutting greenhouse gas emissions by 20 per cent unconditionally and up to 47 per cent with international support.

“Through initiatives like the 2021-2030 Climate Change Policy, Energy Transition Plan, afforestation strategies, and renewable energy projects, we are building real capacity to mitigate climate impacts,” Ms Abiola-Awe said.

She cited examples of projects supported by previous green bond issuances across various sectors, including agriculture, energy, and transport.

“These projects, many of which were initiated with the first issue in 2019, demonstrate our progressive movement in mitigating climate change within Nigeria,” she said.

She said the proceeds from previous green bond issuances funded critical projects, including energising education initiatives in Nigerian universities.

Ms Abiola-Awe said the Federal Ministry of Environment, in partnership with the Ministry of Finance, has provided the policy and institutional frameworks for these issuances, which aim to support sectors such as agriculture, energy, transport, and forestry.

The private debt market makers (PDMMs) were encouraged to support the new issuance with confidence, especially with the successful repayment of earlier bonds.

(NAN)