Nigeria's Green Bond Borrowing Increases by N47.36 Billion

Nigeria's green bond borrowing rose by N47.36 billion within a year, indicating a gradual shift by the Federal Government towards climate-linked financing. The Debt Management Office reported that the green bond stock is expected to increase from N15 billion on December 31, 2024, to N62.36 billion by December 31, 2025.

This increase represents one of the fastest growth rates among Nigeria's domestic debt instruments, although green bonds currently account for only 0.02% of total domestic debt in 2024, rising to 0.08% in 2025. The expansion of green bond issuance is part of a deliberate strategy to align public borrowing with environmental development priorities.

The Federal Government plans to implement a sustainable bond framework, with the issuance of green, social, and sustainable bonds beginning in March 2025. These bonds will finance projects with clear environmental and social benefits, contributing to Nigeria's long-term development plan and climate commitments.