The Climate Bonds Initiative, FMDQ OTC Securities Exchange, and Financial Sector Deepening Africa have jointly committed to develop a Green Bond Programme in Nigeria.
A cooperation agreement to deepen green finance in Nigerian debt capital markets was signed this week between the three organisations at the Climate Bonds Initiative annual conference in London.
Access to finance has been identified as one of the key challenges to achieving a green transition. Read more: JSE’s green bond segment could boost ESG investing in South Africa
The federal government has included green bonds as an option to finance the programmes and projects identified in Nigeria's Nationally Determined Contributions (NDC) on climate change, with a focus on addressing key challenges such as poverty, unemployment, environmental degradation, climate change, the infrastructure gap and food security.
Evans Osano, FSD Africa, Director - Capital Markets Development commented: " It is expected that this programme will improve access to a complementary source of longer-term capital alongside traditional, shorter term bank loans, while contributing to the financing of 'green' investments and improving the environment."
Green Bond market supports low carbon growth
Increasing access to both domestic and international bond markets and capital pools is an increasingly important strategy in supporting low carbon growth and national development goals.
Bola Onadele. Koko, FMDQ OTC Securities Exchange, CEO, also commented: "As a Securities Exchange with a passion for developing the Nigerian Capital Markets, FMDQ is excited and optimistic that our pursuit to develop a Green Bond market in partnership with reputable institutions such as FSD Africa and the Climate Bonds Initiative will help address infrastructure gaps and environmental challenges in a sustainable manner to deliver prosperity for Nigerians."
“Nigeria has the opportunity to be a regional driver of green finance, demonstrating how Africa can leverage long-term capital to meet its vast infrastructure needs. In turn this will help establish a secure and sustainable future with new economic opportunities,” said Justine Leigh-Bell, Climate Bonds Initiative, Director – Market Development.