Securities and Exchange Commission, SEC, said it will soon issue guidelines that will facilitate the smooth issuance and operation of Green Bonds in Nigeria.
This is coming after the Federal Government raised over N10 billion in its maiden green bond programme in 2017 to fund environmental friendly projects.
Meanwhile, the Debt Management Office, DMO, said it was planning to issue another federal government Green Bond in the fourth quarter of the year.
Ms Mary Uduk, acting Director-General of SEC, speaking at the launch of Nigerian Green Bond Market Development Programme by FMDQ OTC Securities Exchange, said the commission is also building internal capacity ahead of the take-off of the market to reduce the turnaround time.
She stated: “We cannot do anything without structures in place. So SEC is trying to put up the necessary structures that will be needed for the other interested stakeholders to issue green Bonds.
“We are looking at building internal capacity because even though we have rules on other bonds and we have been operating it, but for green bond to be different, there are some specific requirements. Therefore, we also have to build capacity around it; we are also engaging with other development partners who are also helping us.”
Uduk emphasised that the green bonds would not only deepen the capital market, but would bring about the expected positive impact on the environment.
She assured that the commission will leave no stone unturned in ensuring strict disclosure and compliance by issuers.
Also speaking at the event, Ms. Patience Oniha, Director-General of DMO, revealed that the debt office has commenced the process of issuing the second round of green bonds in the fourth quarter of the year.
Represented by Dele Afolabi, Director, Portfolio Management, DMO, Oniha said that the agency is considering incentives like tax relief for corporates that wish to issue the bond to encourage more players to come along with projects that meet the required.
