As the crippling recession continues to hit the Nigerian economy, the country's leadership persists in seeking solutions to the hardship sufferef by the citizens.
It has emerged that in the first quarter of 2017, Nigeria is to sell Green bonds worth 20 billion naira ($63 million) to help fund renewable energy projects in the country. This will be the first issuance of so-called green bonds in West Africa’s biggest economy.
Long term projects that will hopefully impact the economy in the near future. The sale will also help fund an electric-vehicle commuter project in the city and tree-planting in the country’s arid north, she said.
Being a massively populated country with a consumer ideology has not made things easy. Nigeria, Africa’s most-populous nation with 180 million people, needs more than 6 trillion naira, the equivalent of almost its entire annual budget, to plug its infrastructure deficit, according to information from the Budget and National Planning Ministry.
The government increased its 2016 budget by 20 percent, allocating one-third to projects including roads, rail, ports and bridges, to stimulate an economy battered by a drop in oil production and that’s projected by the International Monetary Fund to contract by 1.7 percent this year.
A glimmer of hope? Finance Minister Kemi Adeosun said this week the nation will issue its third Eurobond, worth $1 billion, in January.
Another target is the much needed electricity generation. Mohammed said her ministry is targeting off-grid solar-power projects producing as much as 1,200 megawatts in the country’s north. Nigeria’s electricity generation capacity is about 6,000 megawatts, according to the power ministry. South Africa, whose population is a third of Nigeria’s, has a capacity of more than 40,000 megawatts.
Plans to curb the wasting of natural resourses. Proceeds from the green bonds will also support environment-friendly projects in the oil-producing Niger River delta, where the government aims to eliminate gasflaring by 2019, Mohammed said.