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The Federal Government of Nigeria (FGN) has successfully issued its third green bond, raising ₦47.355 billion (approximately USD 28.92 million) to fund climate-resilient infrastructure and environmental initiatives under its Nationally Determined Contributions (NDCs).
The five-year bond, issued on June 18, 2025, carries an attractive coupon rate of 18.75% and is rated B2.
Full details of the issuance are available in the Offer for Subscription and the Investor Presentation.
It represents Nigeria’s continued commitment to leveraging sustainable finance to meet its climate targets while spurring economic development.
The issuance was jointly led by Chapel Hill Denham and Stanbic IBTC Capital, with the Debt Management Office (DMO) and the Green Bond Secretariat providing oversight.
Pension Funds Dominate Investor Base
Investor interest was notably high among pension funds, which accounted for 73.91% of total subscriptions, translating to ₦35 billion. Other investors included banks, high-net-worth individuals, trustees (14.78%), fund managers (7.39%), and others (3.92%).
Widening the Scope of Climate Action
This third issuance marks a milestone by expanding the thematic coverage of Nigeria’s green bond program from two to three areas, as outlined in the Sustainable Bond Framework, while also increasing the number of participating ministries, departments, and agencies (MDAs) from six to seven.
Funds raised from Nigeria’s third green bond issuance will be allocated to both mitigation and adaptation projects. On the mitigation side, ₦15 billion will go to the Petroleum Industry Climate Neutral Growth (PICNG) initiative, while ₦16.395 billion will be directed to the Ministry of Water Resources. For adaptation efforts, ₦15.96 billion will be allocated to the Ministry of Environment.
According to the Issuance Impact Report, these projects are expected to collectively reduce or avoid 162,043 tonnes of CO₂ annually, positively impact over 500,000 people, and create approximately 13,000 new jobs.
Greening Nigeria’s Development
This issuance comes amid transformative policy shifts, including the removal of fuel subsidies, which the government says creates space for alternative and cleaner energy investments.
Nigeria, Africa’s largest economy with a GDP of USD 188.27 billion and a population of 225 million, is positioning itself as a regional leader in sustainable finance.
The green bond framework aligns with the Green Bond Principles set by the International Capital Market Association (ICMA). A second-party opinion was provided by Augusto and Co to ensure transparency and credibility, as detailed in the UNEP-endorsed Framework.
Looking Ahead
Nigeria’s green bond initiative demonstrates a growing appetite for climate-aligned investment instruments across African capital markets.
With this third issuance, the country not only deepens its commitment to combating climate change but also underscores the viability of green finance as a tool for economic resilience and inclusive development.
