The Federal Government’s ₦50 billion green bond issuance has been oversubscribed, drawing ₦91.8 billion in investor interest nationwide.
According to Nigeria’s Debt Management Office, this third sovereign green bond demonstrates strong confidence in the country’s environmental finance strategy.
The bond, issued under Nigeria’s ₦150 billion green bond programme, aims to fund eco-friendly infrastructure projects across sectors.
Investors included domestic pension funds, insurance firms, banks, and ethical finance institutions aligned with sustainable investment goals.
Funds raised will support initiatives in renewable energy, afforestation, transportation, and climate-resilient agriculture across various states.
The instrument was issued with a 5-year tenor at 15.75% interest, targeting both environmental impact and investor returns.
Oversubscription reflects growing demand for responsible investment vehicles and Nigeria’s capacity to mobilize climate finance through capital markets.
Nigeria was the first African country to issue a sovereign green bond, with its first in 2017 and second in 2019.
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The success of this latest issuance signals investor alignment with national targets under the Energy Transition Plan and Paris Agreement.
It also aligns with Nigeria’s ambition to achieve net-zero emissions by 2060 through low-carbon infrastructure and climate adaptation.
The DMO said proceeds will be transparently tracked and monitored, with annual impact reports issued to ensure accountability.
The green bond is part of broader efforts to integrate sustainability into public finance and attract climate-aligned funding.
Experts say rising investor confidence in green instruments can support Nigeria’s shift from fossil dependence to renewable systems.
Global interest in African climate finance is rising, but success depends on governance, transparency, and measurable environmental outcomes.
The oversubscription may push the government to expand future green bond issuances beyond the ₦150 billion programme limit.
This development affirms Nigeria’s role as a regional leader in green finance and a credible destination for ESG investments.
