Nigeria Targets Agric, Power With Proceeds Of N15bn Green Bond

  • Apr 16, 2019
  • Daily Independent

Proceeds from the federal government’s second N15 billion Green Bond will be used in financing agriculture, power, health and water resources sectors of the economy before the end of 2019.

Zainab Ahmed, Minister of finance, disclosed this during a media briefing at the end of the recently concluded meeting of the World Bank/IMF.

The minister said following Nigeria’s endorsement of the Coalition Principles as one of the funding members, it became the first SSA country to issue a green bond in December ($10.9 billion) for the financing of solar energy.

She said Nigeria was the first Sub-Saharan African country to issue a green bond in December (N10. 97billion) for the financing of solar,adding that the country is currently in the process of issuing a second green bond $15 billion later this year to finance agriculture, power, health and water resources.

On bilateral issues, Ahmed said the country held some bilateral meetings with the Director, Africa Department of IMF to update the Fund on developments in the Nigerian economy and the country’s commitment to fully implement the Economic and Growth Recovery Programme (EGRP).

“The IMF also promised to assist Nigeria in the area of liquidity management and share lessons and experiences on countries where the energy subsidies were successfully managed,” the minister said.

The minister highlighted government’s effort on human capital development following earlier concerns on Nigeria’s 157 ranking out of 189 globally, considered worrisome.

She said an inter-ministerial working group with representatives of the state governors has been set up and are currently piloting some initiatives in health, education.

Under the social safety nets programmes of the Federal Government, she said there were 15 million people already on the register.

She said the Nigerian delegation at the Spring Meetings also met with the World Bank Power Sector team and discussed the way forward on the Proposed $1 billion Nigeria Performance Based Loan (PBL).

“We agreed to bring relevant MDAs together to ensure we advanced this operation in a timely manner. We will also discuss the Country Portfolio Performance of Nigeria which currently stands at to $9.8 billion with the Nigerian Country team at the World Bank and how we could manage the portfolio for optimum results,” she explained.

According to the minister, at a meeting with the US treasury at the President Emergency Plan Aids Relief (PEPFAR) round-table, discussions focused on developments with respect to HIV financing.

The discussions also looked at HlV-specific government measures and interventions, and the country’s initiative on the Basic Healthcare Provision Fund (BHCPF) to ensure the most efficient ways of utilising health resources.

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