Governor Inuwa Yahaya of Gombe State has announced that the state intends to issue a N30 billion green bond to finance various infrastructure projects.

The governor made this announcement during a visit to the Nigerian Exchange Limited’s trading floor on Wednesday.

Governor Yahaya expressed Gombe State’s commitment to creating an investor-friendly environment and its aspiration to lead other subnational entities in issuing green bonds. He emphasized the importance of robust engagements to ensure the success of this initiative.

The purpose of the visit to the Nigerian Exchange was to demonstrate Gombe State’s readiness to provide an enabling environment for investors. Governor Yahaya acknowledged the success of the national government in this regard and expressed Gombe’s intention to pave the way for other subnational entities to follow suit. He emphasized the need for fruitful engagements and highlighted Gombe State’s unique selling points as a subnational entity.

Muhammad Magaji, the Commissioner for Finance and Economic Development in Gombe State, revealed that the necessary approvals are being sought, and a date for the bond issuance is expected to be set before the end of the first quarter.

Magaji noted that Gombe State has been recognized for two consecutive years as the best place for doing business on the Ease of Doing Business Index. He also highlighted the state’s reputation as one of the safest in Nigeria, which instills confidence in investors.

Green bonds, also known as climate bonds, are debt securities issued to finance or refinance projects that have a positive impact on the environment or climate. They contribute to sustainable development initiatives. While Africa’s engagement in the global green bond market is relatively low, the issuance of green bonds aims to raise awareness and funding for climate solutions. The Federal Government of Nigeria has already utilized green bonds to finance part of its budget deficit, raising N25 billion in 2020 and N15 billion in the previous year.