Nigeria has hit a milestone in sustainable finance with the formal listing of the ₦47.335 billion Series III Sovereign Green Bond on both the Nigerian Exchange (NGX) and FMDQ Securities Exchange. Issued by the Debt Management Office (DMO) on behalf of the Federal Government, the bond offers a competitive 18.95% interest rate and is set to mature in June 2030.
This listing marks the third time Nigeria has tapped into the green bond market to fund its transition toward a climate-resilient economy.
Financing the “Green” Transition The DMO stated that the proceeds from this issuance are strictly earmarked for projects that mitigate climate change impacts. The goals of the Series III bond include:
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Infrastructure Support: Funding renewable energy and low-carbon transport projects.
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Ethical Investment: Providing a dedicated channel for investors whose preferences align with environmental and social governance (ESG) standards.
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Market Visibility: Elevating climate-focused financial instruments to the mainstream of Nigeria’s domestic capital market.
Market Liquidity and Transparency By listing the bond on both major Nigerian exchanges simultaneously, the DMO aims to ensure high market liquidity. This allows investors to buy and sell the bonds easily before their 2030 maturity date, while providing real-time price transparency.
The transaction was supported by a heavy-hitting consortium of financial experts:
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Bookrunners & Issuing Houses: Chapel Hill Denham and Stanbic IBTC Capital Limited.
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Legal Adviser: S.P.A. Ajibade & Co.
Strategic Context The 18.95% yield reflects the current high-interest-rate environment in Nigeria but remains an attractive fixed-income option for institutional investors like pension funds. This issuance is part of the DMO’s broader “Deepening the Market” strategy, which seeks to diversify the types of securities available to Nigerians beyond traditional Treasury Bills and standard FGN Bonds.
As Nigeria continues to navigate its economic recovery in 2026, the DMO’s commitment to green finance signals that the country is successfully marrying its debt management needs with its long-term environmental and sustainability objectives.
