The Nigerian government says it has agreed to an incremental year to year issuances from 2024 to 2027 starting with a larger sized issuance of N60 billion in 2024 for the implementation of green projects.
The increment follows the successful issuances of N25.69bn in the maiden and second issuances of the Green Bond project.
Nigeria’s Minister of State for Environment Dr Iziaq Salako who stated this at that “2-Day Sovereign Green Bond Stakeholder Forum & Inter-Ministerial Committee on Climate Change Meeting” held in Abuja the nation’s capital said the increment would contribute significantly to the country’s low emission target.
Dr Salako said that the third issuance is dependent on the collaboration of stakeholders doing the right thing especially as relate to developing the green budget items.
Dr Salako, also noted that stakeholders must ensure the efficiency of resource allocation and utilization to priority projects, especially the Green Projects for Sovereign Green Bond Issuance.
“At this point, I want to appreciate the Debt Management Office, Budget Office of the Federation, the Office of the Accountant General for their leading roles in Program, the World Bank through the ACReSAL project for financial support the Green Bond Program and process. Your kind consideration and expeditious approval of the support required for the third issuance activities are key to its success. I sincerely appreciate President Bola Ahmed Tinubu GCFR for his commitment to sustainable economic development and for his inspiring leadership particularly in the area of innovative financing in the face of harsh global economic realities.” The Minister of State explained.
He further stressed that the Nigerian government is committed to issuing Sovereign Green Bonds to raise domestic funds for Nationally Determined Contributions NDCs implementation.
“As it currently is, about USD 17.7 billion of financing needs to be mobilized every year from 2021 up until 2030 to fully implement the Nigerian NDCs.” He said.
The Minister said there is the need for continuous and successful implementation of the Green Bond program for the country’s green capital projects.
He also noted that the Green Bond Program is an opportunity for a domestic drive that Government can leverage and further use to mobilize development partner support for achieving its low-carbon pathway.
“Basically were going into the capital markets that means we go outside just like any other business can go outside to raise money from investors, people, who are particularly interested in the environment. So, the green bond gives you opportunities to source investors to be able to invest in government projects, that is directed at addressing the challenge of climate change, pollution, biodiversity loss. Nigeria is becoming very skilled over it, and we hope that we can continuously upscale and increase our ability to be able to assess funding from the capital markets to support some of our green activities. “ The Minister explained.
According to the Minister, “Climate Change is not just an environmental issue. It is a developmental issue, which has enormous economic and social consequences. We need to understand the magnitude of the economic, social and ecological challenges that confront us. The Green Bond issuance has become part of our climate experience. It is in this regard that we shall continue to draw strength and lessons from one another as we proceed in the nation’s low-carbon pathway through the Green Bond process.”
In his presentation Representative of the Director General, Budget Office of the Federation, Mr Alfred Okoh, said the government is committed to finance Green Bond project, while also reiterating the government commitments on Greener future.
“The 2024 to 2026 medium term expenditure framework and fiscal strategy paper cleary state the direction of government in meduim terms and particularly references how government intends to finance Green Project, flowing from that we would have what we called the budget called circular, this give directives and guildlines to MDAs as to how to prepare the 2024 budget and in putting that guidance circular together we are able to articulate how MDAs are expected to package green related projects so that they are easily identified and we are able to work with the Green Bond Secretariat and the Ministry of Environment to collate and package them and move them to the funding phrase.” He explained.
Mr Okoh, said the gathering is to engage all Ministry Departments and Agencies, MDAs, and works collectively to address all issues currently existing in the process of the Green Bond Program.
The National Project Codinatoer ACreSAL, Mr Abdulhamid Umar urged all MDAs to articulate all green areas and projects that require Bond to support.
“I am happy to share with you that World Bank is desirious to supporting this laudable activitiy, the clarion call here is that all MDAs that are gathered here should as a matter of urgency articulate all the greenable areas that requires Bond to support.” He explained.
He also encouraged the Ministry via the Green Bond Secretariat to ensure that sub-national also benefit from the Green Bond Program activities adding that some states Governors has shown interest in promoting green projects.
Nigeria was the first country in Africa and the fourth globally to issue a Sovereign Green Bond, this was also the first Sovereign Green Bond certified using the Climate Bonds Standard.
In 2021, Nigeria pledged its commitment to a Net-Zero goal by 2060. setting the Long-Term Vision for Nigeria as a country of low-carbon, climate-resilient, high-growth circular economy that is also gender-responsive.
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