The Federal Government has laid out a plan to raise up to N500 billion through the issuance of green bonds in 2026, as it seeks alternative financing to fund climate-related and environmental projects.
Minister of Environment, Balarabe Abbas Lawal, at the Abu Dhabi Sustainability Week on Tuesday.
According to a Bloomberg report, the proposed issuance reflects Nigeria’s growing use of climate-linked debt instruments to diversify funding sources beyond oil revenues and conventional borrowing.
The Minister said proceeds from the green bond sale would be channelled into projects aimed at improving air quality, expanding access to clean cooking fuels, and combating deforestation.
According to Lawal, the initiative aligns with Nigeria’s broader climate commitments and environmental sustainability goals, while also tapping into rising global investor appetite for green and sustainable finance instruments.
The planned issuance follows rising global demand for climate-linked assets across emerging markets, as countries including Saudi Arabia and Hungary adopt green financing to fund environmental and infrastructure projects.
For Nigeria, pursuing fiscal reforms, green bonds offer funding for climate and infrastructure projects without heavy reliance on traditional debt or volatile oil revenues, the country’s main source of foreign exchange.
