How 2017 budget delay hinders green bond sale
Due to the delay in the passage of the 2017 federal budget, the issuance of a green bond by the federal government this month may have to wait till whenever that is done, the environment minister said on Wednesday.
A green bond is like any other regular bond but with one key difference: the money raised by the issuer are earmarked towards financing `green’ projects, i.e. assets or business activities that are environment-friendly. Such projects could be in the areas of renewable energy, clean transportation and sustainable water management.
The government had planned to launch the 20 billion naira ($65.55 million) bond in April to fund projects to reduce carbon emissions and develop renewable energy.
Announcing the plans in February, the environment ministry said the programme was aimed at widening Nigeria’s funding options and diversify the OPEC member’s oil-dependent economy, which is the largest in Africa.
“All is set for its formal launch but the budget has to be passed first before the issuance,” Ibrahim Usman Jibril, the minister of state for environment, told reporters in the capital, Abuja, following a cabinet meeting.
The budget, which was first presented to lawmakers by President Muhammadu Buhari in December must be agreed by parliament before it can be signed into law by the president.
Lawmakers have resolved to pass the 2017 budget more swiftly than last year when wrangling between parliament and the presidency delayed the spending plan being passed in to law for months.
