The Minister of Environment, Balarabe Lawal, announced on Wednesday that the government will issue the third green bond in the next few months to support environmental financing..
Lawal made this announcement at the 17th meeting of the National Council on Environment held by the Federal Ministry of Environment in collaboration with the Food and Agriculture Organisation of the United Nations in Abuja, focused on the theme ‘Environment financing: Need to mobilise more windows for generating adequate resources in support of environmental sustainability efforts.’
The council is Nigeria’s highest policy-making body on the environment sector, aimed at deliberating and guiding consultations on environmental issues.
In 2017, the government issued a maiden N10.69 billion green bond with a five-year tenor to fund projects for the development of renewable energy.
By successfully issuing the first green bond in 2017, Nigeria became the first country in Africa to take such initiative.
In 2019, the government announced its second green bond issuance of up to N15bn.
Lawal stressed the importance of mobilizing more financial inflow for environmental sustainability because it allows for the application of resources toward projects and initiatives aimed at protecting and preserving the environment.
Lawal stated that environmental financing is crucial and that the government has been working on the green bond initiative for a long time and is close to issuing the third green bond within the next few months.
He also urged members of the council to consider issuing green bonds, carbon pricing, and public-private partnerships to generate resources for effective environmental protection and conservation.
He therefore urged council members to intensify exploration and implementation of financing accounting at this level.
The minister highlighted that climate change poses a threat to ecosystems, livelihoods, and biodiversity, and rapid actions are required to mitigate its adverse effects.
“We must double our efforts to reduce greenhouse gas emissions, adopt renewable energy solutions, and promote sustainable practices across all sectors.
“As guardians of biodiversity, we must protect our precious ecosystems from degradation and exploitation. Preserving our forests, wetlands, and marine habitats is not just an environmental necessity but a moral duty to preserve the diverse life on earth,” he said.
Earlier, the Minister of State for Environment, Dr Iziaq Salako, emphasized the importance of prioritizing the health and sustainability of the environment in his welcome address.
“It is commonly accepted that without money, dreams may remain just wishes and planned actions paralyzed. Our gathering at this NCE to discuss new ways of funding our dreams and putting our thoughts into action is therefore very important.
“Even though the environment sector is crucial, we still have to compete with other sectors for the limited funds available in both the public and private sectors. Therefore, we need to think more creatively, be more open, use evidence, and focus on results to attract the funds needed for our sector,” Dr Salako said.
He stressed the importance of stakeholders in the public and private sectors coming together to create strategic partnerships to raise funds and develop new models to address environmental crises in the country.
“The Federal Ministry of Environment is ready to take the lead in this area and has been implementing new financing methods like the issuance of the Nigeria Sovereign Green Bond to attract private sector funding into the system.
“I encourage state governments to get involved and explore opportunities for climate financing through the issuance of their green bonds,” he said.
In his good wishes, the FAO representative in Nigeria and ECOWAS, Koffy Dominique, said there is a need to plan for a sustainable and flourishing future for Nigeria as the environment faces increasing pressure from climate change, deforestation, and pollution, among other challenges.
Dominique, represented by Tofiq Braimah, said that once the right conditions are in place, it becomes easier to attract investment opportunities for reducing emissions.
“Progress has been made but more steps need to be taken to establish transformational planning, through integrated programming and investments across multiple sectors, including seeking the support of the private sector, and ensuring policy consistency in addressing the causes of our environmental challenges.
“FAO is dedicated to assisting the government at all levels in improving sustainable natural resources management, including support to implement, monitor and report climate commitments outlined in the National Determined Contribution document, ongoing support to accessing climate finance and partnership, and technical support to integrating agrifood systems into the National Biodiversity Strategy and Action Plans, among other efforts,” he added.