Nigeria FG Plans New Green Bond Issuance For 2023.

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The federal government plans to issue new green bond in 2023 as government explores widely diversified, alternative funding sources to finance its N10.78 trillion budget deficit.

The government had raised N25.59 billion through similar green bonds between December 2017 and June 2019 to fund seven projects including renewable energy, afforestation, agriculture, water and transportation.

The success of the sovereign green bond issuance led to corporate issuances including the N15 billion, 15.5 per cent five-year fixed rate senior unsecured green bond by Access Bank and N8.5 billion, 15.6 per cent 15-year guaranteed fixed rate senior green infrastructure bond by North South Power Company.

The federal government plans to fund the estimated N10.78 trillion deficit for the proposed 2023 budget largely through domestic bond issues. Nigeria has no plan to restructure its debt as government remains committed to meeting its domestic and external debt obligations.

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