The Federal Government of Nigeria announces the listing of 18 percent or N47.355 billion Series III Sovereign Green Bonds due in June 2030, just as Nigeria’s headline inflation rate increased to 15.69 percent in April 2026, up from 15.38 percent in March 2026, while the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC), retains the Monetary Policy Rate (MPR) at 26.5 percent
By Edu Abade
The Debt Management Office (DMO) has announced that the Federal Government of Nigeria has listed18.95 percent or ₦47.355 Billion Series III Sovereign Green Bond due in June 2030 on the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange Limited on 13 May 2026.
In the issue 20 of its Nigeria Economic Update, published on May 29, 2026, the Centre for the Study of the Economies of Africa (CSEA), revealed that the Green Bond, which is the third to be issued by the Federal Government, is intended to mobilize financing for environmentally sustainable and climate-resilient projects. The listing reinforces Nigeria’s commitment to sustainable finance and climate-focused investments while expanding the range of ethical investment instruments available within the domestic capital market.
By enhancing liquidity and improving price transparency, the listing is expected to strengthen investor confidence and encourage greater participation in green finance instruments.
The development also reflects growing institutional efforts to align public financing with environmental sustainability objectives and global climate commitments. Furthermore, the issuance contributes to deepening Nigeria’s domestic bond market and broadening access to long-term financing for green infrastructure and low-carbon development initiatives.
The government should strengthen monitoring and disclosure frameworks to ensure transparency in the utilization and impact of green bond proceeds. There is also a need to encourage private sector participation in sustainable finance through tax incentives, regulatory support, and blended financing mechanisms.
In addition, expanding public awareness and market education on green finance instruments would further deepen investor participation and support Nigeria’s transition towards a climate-resilient economy.
Also, the National Bureau of Statistics (NBS), disclosed that Nigeria’s headline inflation rate increased to 15.69 percent in April 2026, up from 15.38 percent in March 2026, while the Consumer Price Index (CPI) rose to 138.3 points in April 2026 from 135.4 points in March 2026.
Food inflation stood at 16.06 percent year-on-year, while core inflation increased to 15.86 percent. On a month-on-month basis, however, headline inflation moderated to 2.13 percent in April from 4.18 percent in March, indicating a slower pace of price increases. Similarly, food inflation slowed to 3.63 percent month-on-month from 4.17 percent in March, driven largely by moderating prices of key staples such as garri, yam, beans, tomatoes, millet and pepper.
The increase in year-on-year inflation indicates that price pressures remain high despite the moderation observed in monthly inflation trends. The slower month-on-month increase suggests that recent monetary tightening measures and improved food supply conditions are beginning to ease inflationary pressures.
Nevertheless, persistently high food and core inflation continue to erode household purchasing power, increase the cost of living, and constrain consumer demand and business productivity.
CSEA in its report also stressed that the government should intensify interventions aimed at improving food supply chains, reducing transportation and logistics costs, and addressing insecurity in food-producing regions.
“In addition, the Central Bank of Nigeria should sustain coordinated monetary policy measures to stabilize prices while supporting productive sectors through targeted credit interventions and exchange rate stability measures,” it further stated.
Meanwhile, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC), at its 305th meeting held on May 19 and 20, 2026, retained the Monetary Policy Rate (MPR) at 26.5 percent. The Committee also maintained the asymmetric corridor around the MPR at +50/-450 basis points, while retaining the Cash Reserve Ratio (CRR) at 45.0 percent for Deposit Money Banks, 16.0 percent for Merchant Banks, and 75.0 percent for non-Treasury Single Account (non-TSA) public sector deposits.
The decision to maintain policy rates reflects the CBN’s cautious approach to balancing inflation control with broader macroeconomic stability objectives. By sustaining a tight monetary policy stance, the MPC aims to reinforce ongoing efforts to moderate inflationary pressures, stabilize the exchange rate and manage liquidity conditions within the financial system.
The decision also underscores persistent concerns regarding elevated inflation, despite the recent moderation in month-on-month price increases. However, high borrowing costs may continue to constrain private sector credit growth, investment, and business expansion, particularly among small and medium-sized enterprises.
CSEA also admonished that to achieve more sustainable inflation control, monetary tightening should be complemented by fiscal and structural measures to address supply-side drivers of inflation, particularly food insecurity, logistics bottlenecks, and rising energy costs.
“The government should also prioritize policies that enhance productivity and support domestic production to sustainably ease inflationary pressures while minimizing the adverse effects of high interest rates on economic growth, employment and private-sector development,” the report added.
