Petro-economy Nigeria Considers Green Bond Issue to Cover Paris Climate Costs

Goodluck Ebele Jonathan, former President of Nigeria

Goodluck Ebele Jonathan, former President of Nigeria. In 2013 Jonathan dismissed Nigeria’s Central Banker, after a letter from the banker which claimed that $20 billion had gone missing from the State Oil Company was leaked to the press. By World Economic ForumFlickr: De-risking Africa: Goodluck Ebele Jonathan, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=24137085

Guest essay by Eric Worrall

Nigeria, which exports forty-one billion dollars of petroleum products every year, is considering an issue of green bonds to cover their Paris climate commitments.

Nigeria needs $142m to tackle global warming

Nigeria needs 142 million US dollars between now and 2030 to finance its Intended Nationally Determined Commitment (INDC) toward reducing emission and low carbon for improved environment.

This is contained in a statement by the Special Assistant to the Minister of Environment on Communications, Ms Esther Agbarakwe on Saturday, after a stakeholders’ Consultation on pilot issuance of Green bonds in Nigeria.

“The resource needed to finance the NDC is put at USD142 million between now and 2030.

“The forum is part of a continuing collaboration between the Ministry of Environment and the Ministry of Finance to explore and develop a product that can leverage and channel resources towards viable Green projects.

“Also, it can contribute to the achievement of the nation’s development objectives,’’ Agbarakwe quoted Amina Mohmmed as saying.

She said the issuance of green bonds, which had grown from 3 billion dollars per annum since 2012 to an estimated 00 billion dollars for 2016, presented a viable option.

Read more: http://www.vanguardngr.com/2016/09/nigeria-needs-142m-tackle-global-warming/

Esther Agbarakwe who proposed the green bonds is a high level Nigerian government official and environmental activist.

My concern is Nigeria simply doesn’t need the money – a little internal corruption housecleaning would yield more than enough cash to cover Esther’s environmental programme.

While Nigeria is far from the most corrupt country in the world, Transparency International estimates around fifteen billion dollars proceeds of corruption is exported illicitly every year, presumably ending up in secret bank accounts somewhere.

Transparency claims that Nigeria’s corruption position has been slowly improving, but much remains to be done. For example, in 2013, the previous President of Nigeria dismissed central bank governor Lamido Sanusi, after a letter to President Goodluck Jonathan which claimed twenty billion dollars had gone missing from the State Oil Company was leaked to the press.

In 2011, The Banker, a prominent global finance publication, recognised Lamido Sanusi as banker of the year.

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35 thoughts on “Petro-economy Nigeria Considers Green Bond Issue to Cover Paris Climate Costs

  1. which had grown from 3 billion dollars per annum since 2012 to an estimated 00 billion dollars

    I don’t usually call out typos, but in this case I can’t figure out from context what it is supposed to be. Grew to an estimated 00 billion?

  2. No mention of how that $142 mill will be spent. but since it can’t come close to , say, buying a nuclear reactor, I know that the money can’t do anything significant.

    • Don’t tell anybody but I received a letter from the niece of a Nigerian banker who needed to transfer certain funds…………..

      • But, but, but siamian, it’s true !! I got almost 10 million! The fees were a bit high though, just like, hmm a couple of mill higher than that! But I used one of my “secret ” bank accounts, so it didn’t hurt too much, I got billions in the other 250 “secret” accounts,
        ( is a LOL needed?)

    • I expect the majority I’ll find its way into the pockets of “friends of government,” or those who provide “local content” for projects like this. Making a bond issue is a great way to spread the wealth around the world to hiding places. Can you say money laundering?

  3. ‘As young people are working under the umbrella of the Nigeria Youth Climate Coalition (NYCC) and the African Youth Initiative on Climate change (AYICC) to empower each other through peer education, policy advocacy and social media awareness campaign such as #ClimateWednesday’ Esther confirmed.
    _______________________________________

    demography advocacy.

  4. A few days ago some radio news here said something about unprecedented famine that is about to strike Nigeria. Guess climate is their more pressing matter.

  5. For UK readers – I don’t know if it is still true – but around 5 years ago Nigeria flared more gas in 28 days than the UK burns for all purposes in an entire year….

    They certainly still “export” a lot of gas to the atmosphere – as photographs from the ISS still show :-)

      • I’d bet that other earth observation satellites with spectrometers on board also show elevated combustion products in the area – the flaring in Port Harcourt last time I was there was bight enough to light the streets at night – just as well since the locals had stolen all the wire and streetlights.

        The miserable squandering of Nigeria’s resources and the antics of “government” continue ….

  6. Our youngest daughter – a professional helicopter pilot – has been working in Nigeria during four years. The stories she could tell from that period (she left as it became too dangerous to live there)… Indeed it is corruption from the lowest to the highest level.
    It could be a wealthy country because of its oil income, but that is all in the hands of 2% of the happy few in the population. The 98% of the rest has to fight to survive…
    No wonder that there are so many oil spills: people drill into the pipes to get oil, distill the gas out of it and sell that in the neighboring countries. Sometimes it get wrong and dozens or even hundreds get killed…

  7. Jonathan Good luck and his pork pie hat for UN Gen Sec. The world is learning at the feet of the masters that ripping off the plebians is best covered by a “body guard of lies”

  8. Reports are that Nigeria is getting desperate.

    … Africa’s biggest economy is on the verge of a recession, oil production has fallen to about a three-decade low, and the budget deficit has swelled to a record. Yields on Nigeria’s existing dollar debt are almost twice as high as those for Kazakhstan and Colombia, two other developing-nation oil producers. link

    So, what is this business about bond yields?

    If you buy a bond with a 10% coupon at its $1,000 par value, the yield is 10% ($100/$1,000). Pretty simple stuff. But if the price goes down to $800, then the yield goes up to 12.5%. This happens because you are getting the same guaranteed $100 on an asset that is worth $800 ($100/$800). Conversely, if the bond goes up in price to $1,200, the yield shrinks to 8.33% ($100/$1,200). link

    Why does a bond go down in price? Investors don’t trust that the bond will be redeemed at maturity. It’s too risky for them and they will sell it to you cheap. That means the yield goes up.

    Investors think Nigerian bonds are much more risky than those of Kazakhstan and Colombia.

  9. Maybe they could just not export so much oil. That should meet the climate change goals. Cut it back by say, 10% for now and increase each year. That way they don’t need cash, they just cut their income. After all, it’s for the children, to save the planet, etc, right? (If not, then that does explain why they need money for curbing global warming will selling billions in oil. It’s not about the planet?)

  10. Nigeria remind me of an old Russian joke, that Russia must be the richest country in the world because after sixty years there is still something left to steal.

  11. I used to work in a flagship retail store (Selfridges) on London’s main shopping thoroughfare Oxford Street.
    I worked in the VAT returns department, where foreign customers could arrange for the tax to be returned to them via their bank account (VAT is a tax for UK residents alone).
    For nearly all of the customers the money was wired to their bank account in their home country. However, all the Nigerian customers had the money sent to UK bank accounts. I once asked a Nigerian customer what would happen if the money was sent to a bank account in his home country. He laughed extremely loudly and said, “Neither you nor I would ever see that money again!”

  12. Nigeria is still corrupt. I just got an email from a Nigerian prince offering me a commission if I will hide some of his money in my bank account. I’m going to help him out. Lol.

  13. Well, with negative interest rates, the issuer RECEIVES the interest.
    What’s not to like when you borrow money.

    I would issue perpetuals if I was the Nigerian Finance Minister!

  14. According to Nigerian money letters, Nigeria has so much money to give away that 142 million dollars is trival. But the reality is that the climate change we have been experiencing is caused by the sun and the oceans and there is no real evidence that CO2 has any effect on climate. A 142 million dollar effort to reduce CO2 emissions will have no effect on climate. Nigeria would be better off spending the money on the human over population problem.

  15. This is the reality of Nigeria today—-one of the largest famines in recorded history is getting started in northeast Nigeria and the surrounding region. So this is ground zero on the misplaced priorities of climate change and the Paris Agreement. That famine is not from climate change but from farming shut down by competing Muslim terrorist groups. Go research it for yourself and spread the word.

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