Nigeria Aims to Raise $1 Billion Via Domestic Green Bond in 2026
Nigeria is courting local and international investors to support a planned 1.5 trillion naira ($1 billion) green bond issuance scheduled for this year, as the government looks to boost climate financing and ease pressure on public funds.
The Minister of Environment, Balarabe Abbas Lawal, said the federal government is partnering with the International Finance Corporation (IFC), the World Bank Group’s private-sector arm, to attract private capital into the country’s green industrial agenda.
Speaking in an interview on the sidelines of a sustainability conference in Abu Dhabi, Lawal explained that the collaboration with the IFC is aimed at increasing private-sector participation in climate-friendly investments. He did not disclose a specific timeline for the bond’s issuance.
Proceeds from the green bond will be used to fund renewable energy and climate-related projects, including solar power development, low-carbon infrastructure, and initiatives designed to reduce greenhouse gas emissions.
According to the minister, Nigeria is shifting away from relying solely on budget-backed green bonds toward a structure that welcomes private and international investors. He noted that previous green financing efforts had benefited from support from development partners such as the European Union and the World Bank.
Nigeria has increasingly turned to green bonds as part of efforts to diversify its funding base and accelerate its energy transition amid ongoing fiscal constraints. Government officials believe that stronger private-sector involvement could help fast-track the implementation of large-scale climate projects.
Earlier this week, the government also announced separate plans to raise up to 500 billion naira through additional financing initiatives.
