By Faridat Salifu
The Federal Government of Nigeria has launched a N50 billion Series 3 Sovereign Green Bond to finance environmentally sustainable projects across the country.
The bond, which opened for subscription on Monday, June 16, 2025, and will close on Wednesday, June 18, 2025, aims to support initiatives in renewable energy, clean transportation, sustainable water management, and climate change adaptation. Allotment is scheduled for Friday, June 20, 2025.
The green bond has a five-year maturity period and a minimum subscription of N10 million, with additional subscriptions in multiples of N1 million. It is designed to attract institutional and individual investors interested in funding climate-aligned infrastructure while earning competitive returns.
According to the Debt Management Office (DMO), the N50 billion bond will fund several priority projects including N15.960 billion to the Federal Ministry of Environment for climate adaptation and mitigation; N15 billion to Pi-CNG for clean energy transition; N9.320 billion to the Ministry of Water Resources for three earth dams; N6 billion for the Dange Earth Dam project; and N1.075 billion for the rehabilitation of the Buruku/Gboko water supply project. These allocations bring the total earmarked for green initiatives to N47.355 billion.
The issuance marks Nigeria’s first green bond since 2019, when the government raised N15 billion to support 23 projects aligned with its Nationally Determined Contributions. As of March 2025, 95.44 percent of the 2019 bond proceeds had been utilised.
The DMO also recently launched the June 2025 Federal Government Savings Bonds, offering up to 17.121% annual interest, though slightly lower than May’s offer due to the Central Bank of Nigeria’s decision to retain the policy rate at 27.5% to manage inflation.
The green bond qualifies as a liquid asset under CBN guidelines, making it eligible for investment by financial institutions. This has contributed to increased interest from foreign portfolio investors. In May 2025, the government raised N4.28 billion from its FGN Savings Bond auction.