Nigeria will launch her first sovereign green bond in 2017, with its tentative issue expected to come in the first quarter of 2017, the Minister of Environment, Amina Mohammed has disclosed.
Speaking at the recent launch of a book on green economy by the president of the Sustainable Energy Practitioners of Nigeria (SEPAN) in Abuja, Mohammed also stated that a review of the country’s ‘Great Green Wall’ programme as well as the country’s participation in the Lake Chad Basin Commission was underway on the directive of the president, Muhammadu Buhari.
The Great Green Wall is implemented in eleven frontline states of Adamawa, Bauchi, Gombe, Kebbi, Sokoto, Zamfara, Katsina, Kano, Jigawa, Yobe and Borno, and will cover 43 local governments, rehabilitating 225,000 hectares of land.
It equally involves the establishment of green wall or shelterbelt from Kebbi State to Borno State, a distance of 1,500 kilometres and 15 kilometres wide.
She also said Nigeria, having ratified the Conference on Parties (COP) agreement pledged to reduce her carbon emission by 20% in 2020 and 45% by 2030 with supports from international communities on the use of renewable and energy efficiency systems.
Mohammed explained that in addition, the country will increase the penalties paid by oil and gas companies for gas flaring at oil fields they operate in the Niger Delta region.
As expected, she stated that proceeds from the bond will be used to finance Nigeria’s contribution to global efforts to reduce greenhouse gas emissions.
Mohammed noted that the process of launching the sovereign green bond will include Nigeria creating a framework that we can be certified able to create and fund projects that can help her achieve its climate change targets.
Although she did not disclose this, it is however understood that projects that could be considered for financing within the bond include, some off-grid solar parks, national afforestation projects, as well as a commuter bus and traffic drop project in Abuja.
“We hope that in the first quarter of next year, we will have the first sovereign green bond. This will fund the first pipeline of green projects across the nation,” said Mohammed.
She further stated: “The president is taking great steps in restructuring the programme of the great green wall, including Nigeria’s participation in the Lake Chad Basin Commission, as well as improving afforestation through the deforestation projects.
“His attendance of the recently concluded COP-22 and the submission of our instrument of ratification in Marrakesh Morocco further attest to our commitment to implementing our NDC (National Determined Contributions).