The Minister of Environment, Balarabe Lawal has reiterated the ministry’s commitment to advancing Nigeria’s green finance agenda as part of the nation’s sustainable development strategy.
This reaffirmation was made at the 8th meeting of the Green Bond Advisory Group held in Lagos. Lawal emphasised that the ministry is dedicated to ensuring transparency in the issuance and utilisation of green bonds, with accurate reporting of outcomes.
Lawal highlighted Nigeria’s progress in green finance, particularly noting the successful issuance of two sovereign green bonds. These initiatives, he stated, demonstrate the country’s commitment to environmental stewardship and the integration of sustainability into national development strategies. “The two issuances amounting to a total of $165 million have been instrumental in financing climate-smart projects across various sectors, including renewable energy, afforestation and sustainable transportation,” he said.
The minister underscored the indispensable role of the private sector and capital market actors in advancing green finance. He pointed out that the scale of resources required to address climate change and drive sustainable development far exceeds the capacity of the government alone. Hence, private sector involvement is crucial. Lawal stressed that private sector participation brings necessary capital, innovation, and efficiency, vital for scaling up green finance initiatives. By collaborating with financial institutions, development partners, and capital market operators, a robust ecosystem supporting green investments can be created, driving impactful environmental changes.
Lawal announced the upcoming third issuance of Nigeria’s Sovereign Green Bond, which aims to build on lessons learned from previous issuances. “These experiences have provided valuable insights into the challenges and opportunities in green finance. Our focus now is to leverage these insights to enhance the effectiveness of our green bond programme and ensure efficient use of proceeds to achieve climate and environmental development goals,” he explained.
The third issuance will focus on financing projects that align with Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement and the ‘Renewed Hope’ agenda of the current administration. Emphasis will be placed on sectors such as renewable energy, sustainable agriculture, green building, afforestation and resilient infrastructure. By prioritising these areas, the government aims to mitigate climate change impacts, drive economic growth, create jobs, promote social inclusion and build resilience in communities nationwide.
Lawal stressed that the success of the green bond programme hinges on transparency, accountability and effective stakeholder engagement. He assured that all processes surrounding the issuance and utilisation of green bonds would be transparent, with outcomes reported accurately. This commitment is intended to build investor confidence and ensure a conducive environment for sustainable investments.
The minister also acknowledged the significant role played by the Green Bond Advisory Group in shaping Nigeria’s green bond market. The group has made tremendous contributions towards the planning, execution, and management of the green bond process. Lawal’s reaffirmation of the ministry’s commitment to green finance, coupled with the support of private sector partners and robust frameworks, positions Nigeria to further its sustainable development goals and address the pressing challenges of climate change.
By integrating these comprehensive strategies and fostering collaboration, Nigeria aims to enhance its green finance initiatives, ensuring a sustainable and prosperous future.
