The Federal Government of Nigeria has revealed plans to issue a third and fourth tranche of green bonds worth ₦300 billion ($200 million) in 2025, deepening the country's commitment to sustainable finance and climate-resilient infrastructure.
This initiative builds on Nigeria's previous green bond issuances, including a debut ₦10.69 billion green bond in 2017, Africa's first sovereign green bond, and a second tranche of ₦15 billion in 2019, which was led by Chapel Hill Denham Advisory Limited as Lead Financial Adviser/Book Runner, with Capital Assets Limited, RMB - Rand Merchant Bank Nigeria Limited, and Stanbic IBTC Corporate and Investment Banking as Joint Financial Advisers/Book Runners, and Austen-Peters & Co and S. P. A. Ajibade & Co. & Co. as Solicitors. Both issues were oversubscribed, demonstrating investor interest in sustainable assets in emerging markets.
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According to Balarabe Lawal, Minister of Environment, the bonds will be offered in two tranches: ₦50 billion in the coming weeks and ₦250 billion in October, pending regulatory approval and favorable market conditions. The Debt Management Office (DMO) will coordinate the issuance, with proceeds allocated to projects focused on clean energy, sustainable agriculture, afforestation, and transport initiatives, aligning with Nigeria's updated Nationally Determined Contributions (NDCs) under the Paris Agreement.
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