The Need The Federal Government of Nigeria will seek to raise N20bn ($63m) by March of 2017 for the funding of renewable energy projects by issuing “
The Federal Government of Nigeria will seek to raise N20bn ($63m) by March of 2017 for the funding of renewable energy projects by issuing “green bonds”.
Nigeria needs over N6 trillion, a sum that is about annual budget to make up for its infrastructure deficit says the Budget and National Planning ministry.
The Nigeria’s outgoing minister of Environment, Amina Mohammed revealed this in an interview with Bloomberg on the 9th of December, 2016 in Abuja. She also stated that a second could be on course for sale by the end of the year,”
The sale will also be used to fund an electric-vehicle commuter project in abuja and tree-planting in the country’s arid North.
The Buhari government raised its 2016 budget by 20% with one-third of it going to projects like roads, rail, ports and bridge construction, stimulation of the economy dented by a reduction in oil production already projected by the International Monetary Fund (IMF) to shrink by 1.7% cent this year.
“The exchequer can’t get all the money we need, that’s why we must leverage these innovative ways to get funds from the international community.” Mohammed said.
This is a huge opportunity for foreign direct investment to flow in to the country as many Nigerian may not be able to fully take advantage of the Green Bond due to the current economic recession.