FG to get N250bn sovereign green bond for clean energy, e-mobility projects

…as FEC okays ban on single-use plastics

The federal government is set to roll out its most ambitious Sovereign Green Bond yet, targeting N250 billion to fund clean energy initiatives in public institutions and other climate-resilient infrastructure, the Minister of Environment, Balarabe Abbas Lawal, announced Wednesday in Abuja.

Speaking at the 2025 Ministerial Press Briefing Series organised by the Ministry of Information and National Orientation, Lawal revealed that the forthcoming green bond, expected to launch in October, will mark Nigeria’s fourth issuance in a growing portfolio aimed at financing environmentally sustainable development.

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“This fourth green bond, worth about N250 billion, will focus on clean energy for public institutions and other climate-focused areas,” the minister said.

“This marks a significant scale-up from our previous issuances and shows our increasing credibility and ambition on the global green finance stage.”

Nigeria, the first African country and one of the first 10 in the world to issue a sovereign green bond, has already floated bonds worth N10.7 billion, N15 billion, and other tranches in recent years.

These bonds have funded projects in renewable energy, afforestation, water security, and e-mobility.

Lawal noted that a fresh N15 billion tranche is expected to be issued within the next two weeks, directed mainly at afforestation efforts, water security, clean transportation, and low-emission energy solutions.

He acknowledged past implementation challenges, particularly with the second bond, where some commitments, such as a renewable energy project under the Ministry of Power, faced execution setbacks.

However, he assured Nigerians and international stakeholders that lessons had been learned and mechanisms were now in place to ensure effective deployment.

“This time around, I want to assure you that both the N15 billion this month and the N250 billion in October will be fully and efficiently utilised.

“We are working closely with the Ministry of Finance, the World Bank, and the EU, and we are determined to meet our obligations,” Lawal said.

The minister added that global interest in Nigeria’s green bond program has surged ahead of the COP29 climate summit, following his presentations at recent international climate finance forums in Rome and Morocco.

He also disclosed that discussions are ongoing to introduce a dollar-denominated green bond component in 2026, with backing from at least three major international institutions.

“Green bonds are not just about raising funds – they are about financing solutions that emit no carbon, promote green development, and ensure environmental sustainability. And Nigeria is proud to be leading in Africa,” Lawal said.

Nigeria’s Sovereign Green Bond Programme is part of its broader climate strategy under the Renewed Hope Agenda, which prioritises energy transition, environmental sustainability, and resilience-building in the face of climate change.

In addition to the bond announcement, the minister presented a comprehensive progress report on the Ministry’s efforts since 2023, highlighting an aggressive nationwide tree planting campaign, improved flood prediction systems, a crackdown on plastic waste, and new environmental protection policies.

According to Lawal, over 4 million trees have already been planted across the country, with a goal to plant 1 billion trees within the next year.

Under the Great Green Wall programme, involving 11 frontline states threatened by desertification, the ministry has planted 3,850 neem tree seedlings and aims to distribute 5 million date palm seedlings.

It has also established a 175-kilometre shelterbelt as a natural barrier against desert encroachment and banditry.

“We are also launching a mangrove restoration project to plant 4 million mangrove trees across four coastal local governments. These efforts are critical to preserving biodiversity and shielding communities from climate impacts,” the minister said.

Addressing Nigeria’s plastic pollution crisis, Lawal announced that the Federal Executive Council (FEC) has approved a ban on single-use plastics.

The Ministry has also secured $2.9 million to establish a state-of-the-art plastic recycling plant.

“Plastic is one of the biggest environmental menaces in our society,” he warned.

“This new factory will be a game-changer in how we manage plastic waste.”

The ministry has also made Environmental Impact Assessments (EIA) mandatory for all Ministries, Departments, and Agencies (MDAs) before embarking on any project, as part of a broader strategy to reduce chemical pollution and improve environmental governance.

Lawal reported that Nigeria has achieved 90% accuracy in flood prediction, a significant improvement that is helping to protect vulnerable communities.

In response to the rising cost and health impact of traditional cooking methods, the ministry has rolled out the National Clean Cooking Policy, distributing improved cooking stoves to states to reduce reliance on firewood and improve air quality.

“We’re also encouraging the development of private forests to help meet our afforestation targets while creating green jobs,” Lawal added.

The minister concluded with a call for stronger media support and public participation in Nigeria’s climate efforts:

“Green bonds are not just financial instruments; they are lifelines for our planet. This is how we build a more resilient, sustainable Nigeria,” he said.

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