The outgoing Minister of Environment, Amina Mohammed, at the end of the Federal Executive Council meeting, yesterday, said the federal government will commence the issuance of its first sovereign green bond in April, The Sun reports.
The Sovereign Green Bonds project will be used to fund a range of climate-related initiatives including mass transit, land re-afforestation, remediation and solar projects. The government is also considering issuing international bonds by December 2017. It is part of a strategic process by the government to widen the nation’s funding options to catalyse economic rebound and offer the vast majority of Nigerians new alternative vibrant funding.
According to the government, the green bonds issuance will be the first stage to enable Nigerians tap into the growing global market for green bonds, which as of end of 2016 comprised $576 billion of unlabelled climate-aligned bonds and $118 billion of labelled green bonds, in line with the Climate Bonds Initiative in London. The green bond, the first of its kind in Nigeria, will be the first sovereign issuance by an African nation.