DMO deploys N25b green bonds into renewable energy, others in two years

The Debt Management Office (DMO) has disclosed that a total of N25.69 billion had been raised through sovereign green bonds from December 2017 to June 2019.

According to the Director-General of DMO, Patience Oniha, the funds had been deployed to seven selected projects in various sectors including renewable energy, agriculture, water, transport and afforestation.

Besides, she also stated that a total of N615.557 billion had been raised through Sukuk from September 2017 to December 2021.

Green bonds are financial instruments that finance green projects and provide investors with regular or fixed-income payments.

The instrument has become an important tool to address the impacts of climate change and related challenges. Similarly, Sukuk is an Islamic financial certificate that complies with Islamic religious law commonly known as Sharia.

It involves how corporations or governments raise capital and the forms of investments that are made following Shariah.
Addressing capital market Journalists in Lagos, the DMO disclosed that the N615.557 billion raised through Sukuk has been deployed for the rehabilitation and construction of new roads across the country in four years.

She revealed that N365.557 billion had been deployed for the construction of 1,881km of roads and six bridges across the nation.

In her presentation titled: “Nigeria Public Debt – Some Considerations,” Oniha said: “A total of N25.69 billion green bonds have been raised through Sovereign Green bonds since December 2017 and have been deployed to seven selected projects in various sectors including renewable energy, agriculture, water, transport and afforestation.”

“For Sukuk, a total of N615.5 billion has been raised through Sukuk as at December 2021, N365.5 billion of which has been deployed for the construction of 1,881km of roads and six bridges. The last Sukuk issued in December 2021 targets 71 road projects.”

Oniha listed some of the Sukuk funded projects as the reconstruction of Bida-Lambata road in Niger State, rehabilitation of Lagos-Ota-Abeokuta road in Lagos and Ogun states and rehabilitation of Enugu-Port Harcourt road section III Enugu-Lokpanta, Enugu State.

Others are the rehabilitation and reconstruction of Enugu-Port Harcourt dual carriageway section II Umuahia-Aba in Abia State and the rehabilitation of Kano-Katsina road Phase I, Kano State, among others.