Isiyaku Ahmed
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 18 June 2025, carries an attractive coupon rate of 18.75% and is rated B2 by Moody’s.
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.
Nigeria’s Sovereign Green Bond Oversubscribed by 183%
Investors have once again shown strong confidence in Federal Government of Nigeria Securities, with the latest Sovereign Green Bond offer recording ₦91.42 billion in subscriptions—an oversubscription of 183% against the ₦50 billion offer.
This marks the third green bond issuance by the Debt Management Office (DMO) on behalf of the FGN. A total of ₦47.36 billion was allotted at an 18.95% coupon rate.
DMO Director-General, Patience Oniha, attributed the high demand to growing investor confidence in Nigeria’s green financing efforts and commitment to sustainable development and climate action.
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, 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. ₦15 billion will go to the Presidential Initiative on Compressed Natural Gas (PICNG), ₦16.395 billion to the Federal Ministry of Water Resources, ₦15.96 billion to the Federal Ministry of Environment
These projects are expected to collectively reduce or avoid 162,493 tonnes of CO₂ emissions annually, positively impacting over 500,000 people and creating 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), with Augusto & Co. providing the second-party opinion to ensure transparency and credibility.
In addition to greening Nigeria’s development, on June 21, 2025, the FG issued its Series III green bond worth ₦47.355 billion, building on its green bond program launched in 2017.
The latest issuance brings the cumulative total to ₦73.045 billion, funding projects in Renewable energy, Reforestation, Clean technology, Energy efficiency, and Sustainable transportation.
The Series III bond is projected to reduce CO₂ emissions by 162,493 tons annually, contributing to a total of 247,120 tons per year across all issuances.
It is also expected to create 13,000 jobs, bringing the program’s total to 68,572 jobs, and impact 514,000 people, reinforcing Nigeria’s commitment to its Nationally Determined Contributions (NDCs).
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.
