Speaking at a ceremony to commence the
framework for managing the bond, the state governor, Babajide Sanwo-Olu decried
that climate change, though affecting everyone is expected to hit developing
countries the more, especially low-lying states such as Lagos.
He observed, however, that despite its devastating
effects, ‘climate change is being increasingly viewed as a gateway to new
business opportunities, opening many profitable ways for investors to help
protect the planet. One such way is through Green Bonds’.
“Lagos State is particularly mindful of the
effects of climate change and, as such, has shown and continues to show its
commitment to achieving the Sustainable Development Goals (SDGs), a universal
call to action to end poverty, protect the planet and ensure that all people
enjoy peace and prosperity by 2030.
“To achieve these lofty goals, however,
funding is required – far in excess of what the state can currently generate –
and very urgently. The financial sector will, therefore, need to play a vital
role in accelerating the local market’s ability to provide the required
support, by expanding to green lending as an alternative source of funding for
financing eligible green projects and assets in Lagos State.
“That is what we see here today, and I heartily
commend and thank our partners, the Financial Centre for Sustainability (FC4S),
FMDQ and FSD Africa, funded by the UK Government, who are supporting this
development programme.
“This Green Bond Framework Development
Programme is a crucial first step towards creating a viable financing option
for future green and sustainability projects. There is no doubt that Green
Bonds can assist in unlocking sustainable investment opportunities in Lagos
State, opening the door to advance adoption of innovative new technologies,
financing of projects that provide green jobs, and promote economic and climate
resiliency.
“With an expected population growth to 40
million inhabitants by the year 2050, the government is saddled with not only
delivering on economic growth, but mitigating against adverse effects of
climate change and waste generation. These are all opportunities that Green
Bonds can be used to address.
“As a government, we are committed through our
SDG-aligned development agenda (known as THEMES) to utilise our very limited
resources more efficiently for which circular economy is a promising and viable
alternative. Public spending and investments by itself may not be enough to
deliver on circular societies, therefore the need to channel more private
investments for the transition to a zero waste and circular economy, as well as
achieving the SDGs.
“I strongly believe that the green bond
programme will open the doors of deep sustainable funds for infrastructure and social
development for Lagos, being the biggest player in the sub-national capital
market, and therefore open new doors overall for lots of others.
“As a state, we embrace the transparency and
commitment that comes with a Green Finance framework. We believe it sends an
important signal to investors in the market about who we are – a state that is
fiscally responsible, prudent and disciplined. This has indeed been re-affirmed
by our ratings upgrade by Fitch Ratings, an Internationally renowned rating
agency, from AA+ (nga) to AAA(nga) for ‘good standing in terms of its debt
sustainability and resilience’, which happened just yesterday.’’
Bola Onadele-Koko, CEO of FMDQ Group said the
firm was proud to partner the state towards addressing climate and environmental
challenges through the bond.
“I welcome you to this historic signing of MoU
between the Nigerian Green Bond Market Development Programme Implementing
Partners (FMDQ Group and Financial Sector Deepening Africa) and the Lagos State
government, to facilitate the issuance of the proposed maiden N25.00 billion
Lagos State Government Green Bond issuance.’’
“This will stimulate economic growth, enhance
job creation, and align the state’s THEMES agenda towards transitioning Lagos
State to a greener and more sustainable economy in line with the United Nations
Sustainable Development Goals,” he said.
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