With five African nations hoping to raise $2 billion to save marine ecosystems—particularly the coral-rich Indian Ocean regions—Nigeria is not included in the historic debt-for-nature exchange. By exchanging their debt for ecologically connected bonds, countries can restructure their debt and use the savings to support conservation activities. This process is known as debt-for-nature swap. Establishing the “Great Blue Wall” initiative in 2021 with the goal of safeguarding 2 million hectares of ocean ecosystems by 2030, participating nations include Kenya, Madagascar, Mauritius, Mozambique, and Seychelles.
The Nigerian nation continues to be left out despite having abundant natural resources including oil, gas, and biodiversity as well as a growing debt of more than $113 billion. Considering Nigeria’s abundant biodiversity, susceptibility to climate change, and environmental issues including Deforestation and oil pollution, this absence seems unexpected. One may wonder why Nigeria hasn’t made greater use of its environmental resources in these kinds of projects, particularly considering that it stands to gain from financing for conservation and debt relief. The reasons behind Nigeria’s exclusion from the debt-for-nature swap agreement are multifaceted and include institutional impediments, economic difficulties, and government agendas.
This absence is caused by lack of a coherent environmental plan.
Environmental protection is being incorporated into debt plans by participating countries such as Kenya, Madagascar, and Seychelles; nevertheless, Nigeria has traditionally prioritised controlling its debt load through conventional financial instruments, frequently neglecting environmental concerns. Nigeria’s top objective has been to obtain short-term financial relief, frequently through loans and international financial help, without necessarily connecting it to long-term projects, given its debt of over $113 billion as of mid-2023. Nigeria’s exclusion from the agreement may have been primarily caused by the absence of a coherent environmental plan that strikes a balance between Economic Development and conservation.
Another important factor is institutional impediments. Nigeria has to deal with issues like inadequate enforcement of policies, poor agency coordination, and lax environmental governance. Large-scale conservation projects are challenging to implement because of these problems, particularly those that call for a multi-sectoral strategy like debt-for-nature swaps. As an example, nations like Seychelles, which finished a $27 million debt-for-nature swap in 2016, have more robust environmental governance and take the initiative to connect debt relief with conservation. Nigeria, although having a rich environment, has not made protecting its maritime resources a priority. Seychelles, on the other hand, used the funds to safeguard thirty percent of its marine resources.
A potential course of action would be to form a national task force.
In order to participate in debt-for-nature swaps or other comparable programs in the future, Nigeria would have to update its environmental laws, include sustainable practices into its debt management plan, and bolster institutional strength. A potential course of action would be to form a national task force tasked with coordinating efforts to save the environment in various industries. Together with international conservation groups and multilateral development banks, Nigeria might potentially establish more organised financial structures that associate debt relief with particular conservation goals, such preserving its enormous mangroves, which are essential for sequestering carbon.
Furthermore, Nigeria might improve its eligibility by showcasing a more robust dedication to environmental governance. To demonstrate the government’s intention to place a high priority on environmental sustainability, for instance, tighter controls imposed on oil firms accountable for environmental harm in the Niger Delta could be a crucial first step. Global advantages may be significant if Nigeria were to take part in such a revolutionary debt-for-nature agreement. Nigeria has an abundance of biodiversity, which contributes significantly to carbon sequestration and the slowing of climate change. These include large wetlands and mangrove forests.
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Up to ten times as much carbon is stored per hectare in mangroves than in terrestrial forests, according to the United Nations Environment Programme (UNEP). Nigeria might considerably aid international efforts to lower Greenhouse gas Emissions by protecting these ecosystems. Nigeria’s 853-kilometer coastline is also home to important marine species and habitats that are in danger due to pollution, overfishing, and coastal erosion. Nigeria may uphold the livelihoods of millions of people who reside in coastal towns, preserve these ecosystems, and increase Food Security by raising money through a debt-for-nature swap.