The Nigerian government says it is prioritizing climate solutions, and it has now concluded plans to raise N50 billion through Series III of the FGN Green Bond.
The Debt Management Office (DMO) launched the Series 111 on June 16, 2025, targeting to invest N15 billion in clean energy transition initiatives, including development of local infrastructure, conversion to CNG, and electric vehicles.
Another N9.3 billion will be allocated to the construction of three earth dams in Kebbi State’s Kalgo, Maiyama, and Bunza local governments, while N6 billion will be used for the construction of the Dange Earth Dam in Sokoto State. Another N1.075 billion will be allocated for the rehabilitation and upgrading of the Buruku/Gboko Water Supply Project in Benue State.
“These projects, selected by the Federal Ministry of Environment and the Federal Ministry of Water Resources, are intended to support Nigeria’s efforts in combating climate change and promoting environmental sustainability,” said Patience Oniha, the DMO’s director.
But the partial success of the first and second green bond issuances raises questions about what difference Series 111 will make. In 2017, Nigeria issued Africa’s first sovereign green bond of ₦10.69bn, followed by Series II in 2019 (N15bn).
About 81% of Series 1 and 11 bond proceeds were channeled into solar, mini-grid, and tree-planting projects across the country.
“Proceeds from previous green bond issuances funded critical projects, including energising education initiatives in Nigerian universities. That project improved internet access, increased study hours, and ultimately raised academic performance. It is not always what you see on paper, the impact is multidimensional,” claimed Iniobong Abiola-Awe, the director of the department of climate change at the Federal Ministry of Environment.
However, a Premium Times investigation reveals that projects were under-delivered, raising questions about the utilization of the proceeds of the bonds.
The investigation said in Series I, for example, a ₦30.4 million bond-funded tree-planting programme in Oyo State was unsuccessful. Of the 6,000 trees reportedly planted, auditors found out that just around 100 survived, signaling inadequate execution and lack of transparency.
Another Premium Times report also uncovered that renewable energy projects meant to serve staff and students at the Bayero University, Kano, fell short of expectations following the installation of a 7.1-megawatt solar hybrid power plant.
A Heinrich Boll Report agreed with the investigations, highlighting a lack of transparency and accountability in the issuance of Series I and II. The report called out the continued absence of clear post-issuance documentation.
Following the investigations, the director-general of the DMO, Oniha, admitted some failures, promising that the new issuance will deliver more strongly.
But her promise is hardly to be taken seriously, as the failings of Series 1 were not taken into account in the issuance and implementation of Series 11. The DMO now has a responsibility to buy back public trust by ensuring Series 111 delivers on all promises.
The Nigerian government is prioritizing climate action plans by launching the Series III of the FGN Green Bond, aiming to raise N50 billion. The Debt Management Office (DMO) intends to invest N15 billion in clean energy initiatives, such as local infrastructure development and conversion to electric vehicles and CNG. Additional allocations include N9.3 billion for constructing earth dams in Kebbi State and N6 billion for the Dange Earth Dam in Sokoto State, with N1.075 billion reserved for upgrading the Buruku/Gboko Water Supply Project in Benue State.
Despite previous attempts with Series I and II bonds issued in 2017 and 2019, witnessing around 81% of the proceeds going into solar and tree-planting initiatives, there are concerns about the effectiveness of these programs. Investigations revealed under-delivery of projects, highlighting inadequate execution, lack of transparency, and accountability. For instance, a bond-funded tree-planting initiative in Oyo State was largely unsuccessful, with only about 100 out of 6,000 trees surviving. Furthermore, a solar power project for Bayero University, Kano failed to meet expectations.
Various reports and investigations have criticized the previous bond series for the absence of clear post-issuance documentation. Despite the director-general Oniha's acknowledgment of past shortcomings and promises for improved delivery with Series III, skepticism persists due to the lack of corrective actions for failures in previous issuances, challenging public trust in the new initiatives.
