The Federal Government of Nigeria is planning to raise N20 billion ($63 million) by March to help fund renewable energy projects, the first issuance of green bonds in the country.
According to the minister of Environment, Amina Mohammed, said: “We are on track to sell the bond in the first quarter, a sovereign, and could have another by the end of the year.”
The sale will also help fund an electric-vehicle commuter project in the city and plug infrastructure deficit, according to information from the Budget and National Planning Ministry.
The government increased its 2016 budget by 20 per cent, allocating one-third to projects including roads, rail, ports and bridges, to stimulate an economy battered by a drop in oil production and that’s projected by the International Monetary Fund to contract by 1.7 per cent this year.
“The exchequer can’t get all the money we need,” Mohammed said. “That’s why we must leverage these innovative ways to get funds from the international community.”
The minister said her ministry is targeting off-grid solar-power projects producing as much as 1,200 megawatts in the country’s north. Nigeria’s electricity generation capacity is about 6,000 megawatts, according to the power ministry. South Africa, whose population is a third of Nigeria’s, has a capacity of more than 40,000 megawatts.