Inside Nigeria’s $1 billion green bond plan and a similar $3 billion climate opportunity

This was relayed by the country’s environment Minister Balarabe Abbas Lawal.

He noted that Nigeria is collaborating with the World Bank’s private sector division, International Finance Corp., so as to unlock private investments and ease the burden on state resources.

“With IFC coming in, we’re looking at how the private sector will now participate in green industrialization,” he said in an interview in Abu Dhabi on the sidelines of a sustainable conference.

However, he didn’t disclose information about the timeline for the initiative.

As reported by Bloomberg, the environment minister noted that the funds will go to climate and renewable energy projects, such as solar installations, low-emission infrastructure, and initiatives to reduce greenhouse gas emissions.

“For a long time, green bonds have been tied strictly to the budget,” the minister stated.

“But for this green bond, we are looking at bringing in the private sector and international investors,” he added.

Just yesterday, the country’s president, Bola Tinubu, approved the establishment and operationalization of Nigeria’s carbon market framework, a landmark program that is estimated to produce at least $3 billion per year by 2030.

“Nigeria feels at the heart of development opportunity,” the President said.

“In this spirit, Nigeria has launched a climate and green industrialisation investment to unlock $2 billion to $3 billion annually in climate finance.”

The president clarified that the National Carbon Market Activation Policy and the establishment of the National Carbon Registry, designed to enhance emissions reporting, verification, and transparency, constitute the bedrock of the carbon market push.

He noted that these steps are intended to increase the legitimacy and appeal of Nigeria’s carbon credits to international consumers.

“Nigeria recognises the urgent need to deploy and advance technologies to improve green efficiency, modernise infrastructure, and accelerate the delivery of sustainable energy to underserved areas,” he stated.

Additionally, as seen on The Guardian, Tinubu also described a number of funding programs related to Nigeria’s climate strategy.

These include a $50 billion sub-regional green bond that he said was 97.7% oversubscribed, a national climate platform with the objective to mobilize $2 billion in capital investment, and a climate investment platform targeting $500 million for climate-resilient infrastructure.