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By Chukwuma Umeorah
Gombe State is in the final stages of securing a N30 billion green bond from the Nigerian capital market aimed at addressing climate change challenges and fostering sustainability within the state.
The Governor, accompanied by his economic team and a delegation of investors, disclosed this development at the Closing gong ceremony during an official visit to the Nigerian Exchange (NGX) Limited on Wednesday.
Green bonds, recognized as fixed-income financial instruments, serve as a means to mobilize funds dedicated to climate mitigation, adaptation, and other Eco-friendly projects.
Governor Yahaya highlighted his administration’s steadfast commitment to tackling environmental issues over the past four years. He emphasized the significance of Gombe State, strategically positioned as a key entry point in the northern region of the country. He added that the state would be the first sub-national government in Nigeria to raise funds specifically for environment-related investments.
“We are going to be the first sub-national government after the federal government to issue this. It is a testament to what we are doing in Gombe,” he asserted.
Citing the state’s top ranking in terms of enabling business environments for the years 2021 and 2022, coupled with its reputation for maintaining peace and cordiality, the governor extended a formal invitation to investors, urging them to capitalize on the secure environment and promising returns on investment.
Providing rationale for selecting the capital market as the avenue for fund mobilization, Yahaya characterized it as “The hiding place for any investor, whether governmental or private because the market has the resources required.”
He commended recent market reforms propelled by Presidential Bola Tinubu which has helped to stimulate the market strengthening investors’ confidence and making it an attractive investment destination.
Commenting on the plans and a potential timeline, the Commissioner of Finance for Gombe state, Muhammad Magaji revealed that the necessary approvals were already in progress and would be finalized by the end of the first quarter of 2024.
“We are in the process of approvals. Hopefully, before the end of the first quarter, we should have a date for the issuance.”
Magaji also highlighted the innovative approach of Governor Yahaya’s administration as a driving force behind the decision to issue green bonds. “The state’s commitment to sustainability, exemplified by solar-powered streetlights and renewable energy in hospitals and offices, underscored the need for further investment in environmentally sustainable practices,” he noted.
Acting CEO of NGX, Jude Chiemeka on his part assured the governor and potential investors that the market is open to everyone for business and its will to regulatory compliance ensures that the market is embedded in a strong corporate governance structure.
“Last year, we raised over N3.3 trillion for states as well as the government in order to fund their finance gaps. We are also committed to partnerships both locally and globally to ensure that anyone who approaches the Exchange would be able to raise the capital that they need. Customer centricity is a cardinal point for us, and we always continue ensure that they receive the best service they can get in the world.”
