The Federal Government of Nigeria has officially launched its N50 billion Series 3 Sovereign Green Bond, aimed at financing environmentally sustainable projects that mitigate climate change and support long-term economic resilience.
The newly issued bond will channel funds into key sectors such as renewable energy, clean transportation, sustainable water management, and climate change adaptation.
These initiatives align with Nigeria’s commitment to reducing carbon emissions and advancing its sustainability goals.
The bond offer opened on Monday, June 16, 2025, and will close on Wednesday, June 18, 2025, with allotment scheduled for Friday, June 20, 2025.
It carries a five-year maturity period, with a minimum subscription of N10 million and multiples of N1 million, providing institutional and individual investors with an opportunity to support green initiatives while earning competitive returns.
Fund Distribution and Strategic Priorities
According to the Debt Management Office (DMO), which coordinates the issuance, the Series 3 Green Bond will finance several priority projects:
- N15.960 billion allocated to the Federal Ministry of Environment for climate change adaptation and mitigation efforts.
- N15 billion directed toward Pi-CNG’s clean energy transition initiative, accelerating Nigeria’s shift toward cleaner fuel sources.
- N9.320 billion designated for the Federal Ministry of Water Resources to construct three earth dams supporting water conservation.
- N6 billion earmarked for the Dange Earth Dam project to strengthen irrigation and water security.
- N1.075 billion will fund the rehabilitation and upgrading of the Buruku/Gboko water supply project, improving access to potable water.
This brings the total allocation for green initiatives to N47.355 billion, reinforcing Nigeria’s commitment to sustainable development.
Track Record and Future Implications
The Federal Government’s last engagement in green bond initiatives dates back to 2019, when it issued its second Sovereign Green Bond, raising N15 billion for 23 environmentally focused projects aligned with Nigeria’s Nationally Determined Contributions (NDCs).
As of March 2025, 95.44% of the 2019 green bond proceeds (N14.316 billion) had been utilized, according to the DMO, highlighting the government’s efficient execution of sustainability projects.
What you should know
In addition to the green bond issuance, the DMO recently launched the June 2025 Federal Government Savings Bonds, offering interest rates of up to 17.121% per annum.
- The subscription window ran from June 2 to June 6, 2025, with slight interest rate reductions compared to May, likely influenced by the Central Bank of Nigeria’s (CBN) decision to maintain policy rates at 27.5% to curb inflation and stabilize the foreign exchange market.
- The CBN classifies the green bond as a liquid asset, meaning it qualifies for investment by banks and other financial institutions. This classification enhances its attractiveness to institutional investors, supporting broader adoption of green financing in Nigeria.
This strategy has made Nigerian bonds increasingly attractive to foreign portfolio investors (FPIs), driving continued interest in the nation’s debt instruments.
In May 2025, the Federal Government raised N4.28 billion through its FGN Savings Bond auction, reflecting strong investor confidence in long-term securities.
