In a strong endorsement of Nigeria’s sustainable development drive, the Debt Management Office (DMO) has successfully raised N91.42 billion through the Federal Government’s third Sovereign Green Bond issuance. Initially targeted at N50 billion, the offer attracted an overwhelming subscription of 183%, underscoring growing investor confidence in Nigeria’s commitment to environmental sustainability and climate action.
The offer closed on Wednesday, June 19, 2025, and was hailed by market analysts and stakeholders as a major milestone for the country’s green finance ecosystem. The funds are earmarked for projects under the 2024 Appropriation Act that align with Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Climate Agreement.
According to a statement issued by the DMO, investors were allotted a total of N47.355 billion at a competitive coupon rate of 18.95% per annum. The remainder of the funds raised beyond the initial allotment reflects strong market demand and sets a precedent for future green bond issuances in the region.
Speaking on the outcome of the transaction, the Director-General of the DMO, Ms. Patience Oniha, expressed optimism about the country’s path toward sustainable economic development.
“The strong investor interest in this Green Bond demonstrates growing confidence in Nigeria’s commitment to sustainable financing. Green bonds are becoming an increasingly important instrument for mobilising capital towards our climate objectives and development agenda,” Oniha said.
She noted that the green bond will not only help finance eco-friendly infrastructure but also deepen Nigeria’s domestic capital markets and offer institutional investors opportunities to align with Environmental, Social and Governance (ESG) goals.
The Sovereign Green Bond is a strategic financing tool for climate-resilient infrastructure, renewable energy, afforestation, and low-carbon transportation. The proceeds will be channeled to selected ministries, departments, and agencies (MDAs) that are implementing projects aimed at reducing Nigeria’s carbon footprint and increasing energy access, especially in rural communities.
Nigeria has pledged to achieve net-zero emissions by 2060, and initiatives such as this bond issuance are considered critical to financing the transition to a low-carbon economy. The green bond is aligned with global climate finance frameworks and represents Nigeria’s continued leadership in Africa’s green finance landscape.
The issuance was jointly managed by Chapel Hill Denham and Stanbic IBTC Capital Limited, who acted as lead advisers, book runners, and issuing houses. Both institutions praised the robust response from investors and emphasized the importance of the deal for market diversification.
This third issuance builds on the success of previous sovereign green bonds issued in 2017 and 2019, which were used to finance renewable energy, reforestation, and water management projects. Cumulatively, Nigeria has raised over N150 billion from green bonds, reinforcing its role as a pioneer in sub-Saharan Africa’s climate finance space.
With ESG investing gaining traction globally, analysts predict that Nigeria could attract even more foreign direct investment if it continues to demonstrate accountability in managing climate funds and publishing transparent project reports.
Stakeholders in the financial and environmental sectors are urging more private sector involvement in green bond markets. Analysts recommend tax incentives, robust regulatory frameworks, and capacity-building to encourage companies to issue corporate green bonds.
As Nigeria navigates its energy transition pathway, the success of this bond issuance serves as a powerful signal that sustainability and economic growth are not mutually exclusive.