Gombe State Plans N30 Billion Green Bond for Infrastructure Development

Governor Inuwa Yahaya of Gombe State revealed that the state is set to issue a N30 billion green bond to finance diverse infrastructure projects during his visit to the Nigerian Exchange Limited. He expressed the state’s commitment to creating an attractive investment environment and leading the way for other subnational entities in issuing green bonds.

Yahaya highlighted the importance of robust engagements to ensure the success of the initiative and emphasized the state’s readiness to facilitate investor-friendly environments. Muhammad Magaji, the Commissioner for Finance and Economic Development in Gombe State, indicated that approvals are underway, and the bond issuance date is expected to be set before the end of the first quarter.

Magaji underscored the state’s consecutive recognition as the best place for doing business on the Ease of Doing Business Index and emphasized Gombe’s reputation as one of the safest in the country. Green bonds, also known as climate bonds, are debt securities designed to finance projects with a positive impact on the environment or climate, contributing to sustainable development initiatives.

The global green bond market gained momentum in 2007, and the Federal Government of Nigeria has utilized green bonds to fund part of its budget deficit. With the government raising N25 billion via green bonds in 2020 and N15 billion in the previous year, these measures are pivotal in prompting climate awareness and funding for sustainable solutions.