L – R shows Temi Popoola, Group Chief Executive Officer, Nigerian Exchange Group; H.E. Alhaji Muhammad Inuwa Yahaya, CON, Executive Governor, Gombe State; Alhaji (Dr) Umaru Kwairanga, Chairman, NGX Group; Jude Chiemeka, Acting Chief Executive Officer, Nigerian Exchange Limited (NGX); Mallam Muhammad Gambo Magaji, Honorable commissioner of Finance & Economic Development, Gombe State; Oluwole Adeosun, President, Chartered Institute of Stockbrokers (CIS) and Ibrahim Dikko, Director, Nigerian Exchange Limited during Gombe State Government’s courtesy visit to the Exchange to explore harnessing green bonds in the capital market for sustainable development today in Lagos
I.n a momentous occasion at the Nigerian Exchange Group (NGX), the Closing Gong resonated in honor of Gombe State Governor, His Excellency Alhaji Muhammad Inuwa Yahaya CON. However, the ceremony became more than a ceremonial tradition as Governor Yahaya seized the opportunity to unveil a visionary plan. In a groundbreaking revelation, he disclosed his intent to raise capital through a N30 billion Green Bond from the market, earmarked for transformative and sustainable infrastructure projects.
And in a bid to finance critical infrastructure projects, Governor Inuwa Yahaya of Gombe State has announced the state’s intention to issue a N30 billion green bond. The announcement was made during a visit to the Nigerian Exchange Limited’s trading floor on Wednesday.
Governor Yahaya emphasized the state’s commitment to creating an investor-friendly environment, taking inspiration from the national government’s successful green bond initiatives. He expressed Gombe’s aspiration to lead other subnational entities in leveraging this financial instrument to advance development goals.
During the visit, the state’s Commissioner for Finance and Economic Development, Muhammad Magaji, provided additional insights into the bond issuance. Magaji mentioned that approvals were already in progress, and the state aimed to finalize a date by the end of the first quarter.
Gombe State has gained recognition for its business-friendly environment, being ranked as the best place for doing business on the Ease of Doing Business Index for two consecutive years. The state’s reputation for safety further boosts investor confidence, positioning Gombe as an attractive destination for potential investmeGreen bonds, also known as climate bonds, are debt securities designed to fund projects with positive environmental and climate impacts. The concept gained traction in 2007 when the European Investment Bank issued a climate awareness bond, followed by the World Bank’s issuance of a Green Bond in 2008.
The Federal Government of Nigeria has previously tapped into the green bond market to finance budget deficits, raising N25 billion in 2020 and N15 billion in the preceding year.
Governor Yahaya’s announcement aligns with global efforts to address climate change and promote sustainable development. Despite Africa’s limited engagement in the global green bond market, Gombe State’s initiative reflects a proactive approach to attract investments and contribute to environmentally conscious financing solutions. The success of this endeavor could potentially set a precedent for other subnational entities in Nigeria and beyond.
Governor Yahaya, in his address, outlined the strategic significance of the Green Bond in fostering environmentally conscious development. The N30 billion initiative is poised to fund a spectrum of infrastructure projects designed to be environmentally friendly, resilient, and aligned with global climate objectives.
This forward-looking move positions Gombe State as a pioneer in harnessing financial markets to combat climate change and advance sustainable development. The Green Bond not only signifies a commitment to environmental stewardship but also serves as a model for other regions to follow suit, leveraging innovative financial instruments for green initiatives.
