The Federal Government of Nigeria has announced the imminent launch of its third green bond programme. It is intended to finance several green projects across the country.
A third green bond will soon be launched in Nigeria. Mohammad Mahmood Abubakar, the Nigerian Federal Minister of the Environment announced this from the Nigerian Stock Exchange in Lagos. The objective this time is to raise 25 billion naira, or more than 68.7 million dollars. More specifically, it is a loan issued on the market from investors to finance projects contributing to the ecological transition.
These projects may relate to renewable energy, sustainable waste and water management, sustainable land use, clean transportation, climate change adaptation, etc. The projects may be in the sectors of renewable energy, sustainable waste and water management, sustainable land use, clean transportation, climate change adaptation, etc. The 3rd green bond that the government is about to launch is intended to finance several environmental projects.
Several targeted sectors
The new green bond, which the government wants to launch, is part of a whole programme whose implementation began in 2017. “The first round of the green bond amounted to about 10 billion naira ($27.3 million), the second to 15 billion naira (more than $41 million) and the third to 25 billion naira. We want to embark on other projects that will help reduce global warming,” says Mohammad Mahmood Abubaka.
The funds raised will therefore be used to finance projects for the exploitation of renewable energy, reforestation, access to water, water treatment and intelligent agriculture to minimise its impact on the environment, etc. The Nigerian government’s green bond programme is part of its commitments contained in the Paris Climate Agreements signed on September 21, 2016.
The country had committed, in its Nationally Determined Contribution (NDC), to reduce its greenhouse gas emissions by 45% by 2030. In Nigeria, this commitment is reflected in the multiplication of renewable energy projects, particularly solar energy. “Green projects are what we need today because of the climate problems we face. We need to change our environment through solid waste management, turning waste into wealth and resources,” says Minister Mohammad Mahmood Abubakar. The 2019 green bond has mobilised more investors than expected. They subscribed for a total loan amount of 33 billion naira ($90.7 million), while the goal was to raise 15 billion naira ($41.2 million).
Jean Marie Takouleu