Nigeria plans to raise about $1 billion (N1.5 trillion) through a domestic green bond this year as it seeks to mobilise private capital to ease pressure on public finances.

The government is working with the International Finance Corporation, the World Bank’s private-sector arm, to structure the transaction and attract backing from institutional investors, according to Balarabe Abbas Lawal, the country’s minister of environment.

The proposed issuance would build on Nigeria’s earlier forays into sustainable finance and reflects growing efforts by African governments to tap local capital markets for climate funding.

Proceeds are expected to be directed towards projects supporting environmental sustainability and climate resilience. (BusinessDay)