The Federal Government of Nigeria, through the Debt Management Office (DMO), has introduced a N100 billion green bond offering to support environmentally sustainable initiatives. The announcement, made via the DMO’s official social media channels, details the issuance of two bonds: a N50 billion five-year re-opening bond maturing in April 2029 and a N50 billion new seven-year bond due in June 2032, both carrying a semi-annual interest rate of 19.3%.
The bond auction took place on June 23, 2025, with settlement scheduled for June 25, 2025. Priced at N1,000 per unit, the bonds require a minimum subscription of N50,001,000, with additional investments in multiples of N1,000. For the re-opened bond, successful bidders will pay a price based on the yield-to-maturity that clears the auctioned volume, plus any accrued interest.
Key Features of the Bonds
The DMO emphasized that these bonds qualify as securities under the Trustee Investment Act, making them suitable for trustees and pension funds. They are also exempt from taxes under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), enhancing their appeal to investors. Additionally, the bonds are recognized as government securities, listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, and count as liquid assets for banks’ liquidity ratio calculations.
Backed by the full faith and credit of the Federal Government of Nigeria, these bonds are secured against the nation’s general assets, ensuring investor confidence.
Investor Access and Participation
The DMO has partnered with several financial institutions to facilitate subscriptions, including Access Bank Plc, Citibank Nigeria Ltd, Coronation Merchant Bank Ltd, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, First Bank of Nigeria Ltd, First City Monument Bank Plc, FSDH Merchant Bank Ltd, Rand Merchant Bank Nigeria Ltd, Guaranty Trust Bank Ltd, Stanbic IBTC Bank Ltd, Standard Chartered Bank Nigeria Ltd, United Bank for Africa Plc, and Zenith Bank Plc.
Supporting Nigeria’s Sustainable Development
The green bond issuance reflects Nigeria’s commitment to funding projects that address environmental challenges and promote sustainable development. By tapping into the capital markets, the government aims to mobilize resources for initiatives that align with global sustainability goals while offering investors a secure and tax-advantaged investment opportunity.
This move follows Nigeria’s recent success in raising $1.25 billion through Eurobonds, signaling continued efforts to diversify funding sources and bolster economic growth.
