(Ecofin Agency) - The Federal Government of Nigeria intends to issue a $64 million green bond in April this year to fund low-carbon emission projects and boost renewable energy in the country. This was declared by the outgoing Minister of Environment, Amina Mohammed (photo), in Lagos on Thursday.

Mohammed said the bond would be aimed at domestic markets and target areas such as solar power, agriculture, transport and deforestation. According to her, the green bond falls under plans to expand Nigeria's funding options and diversify the economy which depends mainly on oil.

“The green bond issuance will be the first stage in enabling Nigeria to tap into the growing global market for green bonds,” she said.

Nigeria, which is in its first recession in 25 years, needs to overcome its budget deficit.

In this framework, the government has recently sold $1 billion worth of 15-year Eurobonds and is currently seeking approval from the parliament to issue another $500 million Eurobond. The country also plans to raise a $300 million diaspora bond abroad and sell a maiden sovereign Sukuk in the local market.

Anita Fatunji