DMO to fund dams, renewables, and eco-friendly infrastructure across Nigeria with new bond.
Oniha says move shows stronger focus on sustainability and green development goals.
The Debt Management Office (DMO) has officially launched the Series III Federal Government of Nigeria (FGN) Green Bond, aiming to raise ₦50 billion to finance climate-resilient infrastructure and green energy initiatives across the country.
Announcing the issuance on Monday, June 17, during a stakeholder event in Lagos, DMO Director-General Patience Oniha said this latest issuance marks Nigeria’s return to the green bond market after a strategic pause since 2019.
“This is our first issuance since February 2019,” Oniha noted. “After completing the first two rounds, we deliberately paused to assess and learn. We are returning to the market better prepared and with a clearer strategy.”
The Series III bond, structured as fixed-rate notes with a five-year tenor, is expected to mobilize capital for key environmental projects selected by the Federal Ministries of Environment and Water Resources. The total funds will be dedicated to initiatives focused on climate change mitigation and environmental sustainability, in line with the 2024 Appropriation Act.
According to the breakdown provided by the DMO, ₦15.96 billion, the largest allocation, will fund climate change adaptation and mitigation efforts. An additional ₦15 billion is earmarked for clean energy transition projects, including local infrastructure for compressed natural gas (CNG), electric vehicles, and renewable energy development.
Water-related infrastructure will also receive significant funding. ₦9.3 billion is set aside for the construction of three new earth dams, Kalgo, Maiyama, and Bunza, while ₦6 billion will go toward the Dange Earth Dam. The Buruku/Gboko Water Supply Project will be upgraded and rehabilitated with an allocation of ₦1.075 billion.
Chapel Hill Denham Advisory Limited and Stanbic IBTC Capital Limited are the financial advisers coordinating the offer. The bond, to be issued in Nigerian naira, is open to institutional investors, with a minimum subscription of ₦10 million and further investments allowed in multiples of ₦1 million. The DMO has not yet disclosed the price guidance for the book build.
This green bond, which represents a direct, general, and unsecured obligation of the federal government, has received a second-party opinion from ratings agency Agusto & Co., certifying its compliance with international green finance standards.
Oniha emphasized that investor engagement is key, especially for innovative financial instruments like this. “We are here not just to announce the issuance but to explain the value and purpose behind it,” she said. “This transparency helps build investor confidence.”
Once issued, the Series III bond will be listed on the Nigerian Exchange Limited’s Sustainable Instruments Market (Impact Board) and/or the FMDQ Securities Exchange’s Green Exchange. The Central Securities Clearing System (CSCS) will oversee clearing and settlement. The bond will be governed by the laws of the Federal Republic of Nigeria, and full principal repayment is scheduled at maturity.
Nigeria’s debut sovereign green bond in 2017 raised ₦10.79 billion and was oversubscribed by 101 percent. The second issuance in 2019 followed with even greater investor interest, attracting ₦32.93 billion in subscriptions, 220 per cent of the offer.
This third green bond aims to build on that momentum and reinforce Nigeria’s commitment to sustainable development and climate goals under the Paris Agreement and other international accords.
According to Oniha, green bonds will become a regular feature of the government’s borrowing program. “We intend to issue more green bonds regularly,” she said. “They are not only part of our domestic financing strategy but also reflect Nigeria’s alignment with global environmental priorities.”
As Nigeria faces mounting environmental challenges from flooding to energy transition, the Series III Green Bond represents a strategic step toward funding sustainable solutions through market-driven instruments.
