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.
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.