The Federal Government has again raised the alarm over the delay in the passage of the 2017 budget and its implications for execution of development projects in the country.
Government noted, for instance, that the delay was stalling the floating of Nigeria’s Sovereign Green Bond, which was to be floated early this month.
The Minister of Environment, Amina Mohammed, had on her last day at the Federal Executive Council (FEC) meeting said issuance of the first $20 billion out of the $100 billion would commence at the beginning of the second quarter of the year and specifically April 2017.
However, the Minister of State for Environment, Ibrahim Jibrin, while briefing State House correspondents at the post-FEC meeting chaired by Vice President Yemi Osinbajo, said though processes were in top gear, the issuance of the bond would wait until the 2017 appropriation is passed.
He explained that while consultations to fine-tune the technical details of the bond are still ongoing, the Central Bank of Nigeria (CBN) has already opened an account domiciled with it for the bond.
The green bond, the first of its kind in Nigeria, will be the first sovereign issuance from an African nation. It will be used to fund a range of climate-related initiatives including mass transit, land re-afforestation, remediation and solar projects.
“We said it is a sovereign green bond and that means it has to go through the national budget. We are working in active collaboration with the Federal Ministry of Finance as well as the Debt Management Office (DMO). A meeting is currently ongoing at the DMO in respect of the process.
“We have got the central bank to open an account for the proceeds, but since it is sovereign, the National Assembly will have to pass the budget first before we can do the launch and that is what is holding us,” Jibrin said.
He also explained that three pipeline projects will benefit from the green bond once established. The projects, which include the financing of renewal energy and afforestation will also see to the reduction of carbon emissions through the provision of extra transportation for citizens.
“The issuance of the green bond will go a long way in assisting the financing of the green budget such as renewable energy such as solar power and we are looking at collaboration with the Minister of Power and Housing.
“The second pipeline project has the Minister of the FCT on board because we want to use the FCT as a laboratory and to have transport as part of our contribution to reducing emissions.


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