2017 Budget: FG to Delay Green Bond Sale

• 2017 Budget: FG to Delay Green Bond Sale

The Federal Government will delay the issuance of green bond until the 2017 budget has been passed, the Minister of State for Environment, Ibrahim Jibril, has said.

The Federal Government had planned to launch the N20bn ($65.55m) bond in April to fund projects to reduce carbon emissions and develop renewable energy.

Announcing the plans in February, the Environment ministry said the programme was aimed at widening the country’s funding options and diversifying the economy.

“All is set for its formal launch but the budget has to be passed first before the issuance,” Jibril told reporters shortly after the Federal Executive Council Meeting in Abuja on Wednesday, Reuters reported.

The budget, which was first presented to lawmakers by President Muhammadu Buhari in December, must be passed by the National Assembly before it can be signed into law by the President.

Lawmakers have resolved to pass the 2017 budget more swiftly than last year when wrangling between NASS and the Presidency delayed the previous appropriation bill from being passed into law for months.

Meanwhile, the naira closed at 410 per dollar against the United States currency on Wednesday, same level it recorded on Tuesday.

This was despite the Central Bank of Nigeria’s attempt to improve dollar supply and prop up the local unit.

The CBN had on Monday auctioned $100m in forwards to be settled between one week and 30 days’ time, as against 60-day contracts it had written previously, shortening the settlement period on forward contracts to inject liquidity.

On the official market, the naira closed at 306.10/dollar on Tuesday.

The central bank had on Monday opened a special foreign exchange window for the Small and Medium Enterprises.

Also on Tuesday, the regulator opened a special forex window for dividend remittances.

The naira had risen to 375/dollar about two weeks ago, following improved supply by the central bank.

Analysts said improved forex supply would help the naira to appreciate in coming weeks.