Nigeria Rolls Out First Corporate Plastic-Linked Sustainability Bond In Africa

FMDQ Group PLC has entered into a sustainable-finance partnership with FC4S Lagos, FSD Africa, Chapel Hill Denham, and Kaltani International Ventures Limited to advance Nigeria’s circular-economy agenda and spearhead Africa’s first corporate plastic- and carbon-linked debt instrument.

The strategic collaboration, formalised at a signing ceremony in Lagos, marks a major push to scale market-based mechanisms for environmental financing and deepen Nigeria’s sustainable-finance ecosystem.

According to FMDQ, the initiative, convened under the Nigerian Green Bond Market Development Programme, aims to mobilise private capital for climate-aligned projects, expand access to sustainable financing for industrial players, and drive innovation in waste-management solutions.

At the core of the partnership is an innovative financing product developed by FC4S Lagos with support from FSD Africa and FMDQ Group, designed to channel capital to Kaltani, one of Nigeria’s leading plastic recycling and waste-management companies.

This development comes as Nigeria ranks among the world’s top ten plastic waste-generating countries, intensifying calls for scalable solutions to pollution and circular-economy expansion.

While the World Bank issued the first Plastic Waste Reduction-Linked Bond in 2024 for projects in Ghana and Indonesia, the Nigerian initiative represents the first time a corporate-level plastic- and carbon-linked instrument will be introduced on the continent.

Speaking on the development Associate, Financial Markets at FSD Africa, Joy Kendi, said the partnership demonstrates the power of domestic capital markets to finance climate-smart growth.

She noted that preparatory work under Phase I, including carbon and biochar credit assessments and registration, has already commenced, describing the project as “a bold step towards unlocking Africa’s next generation of climate-finance solutions.”

Kaltani’s CEO, Engr. Obi Charles Nnanna, described the partnership as a transformational step for Africa’s circular-economy financing landscape.

He said the collaboration would help convert waste into economic value, create jobs, and deliver measurable climate impact.

“This is profit with purpose,” he stated, adding that the initiative shows climate finance can be “local, credible, and transformational.”

FMDQ Group’s Group Chief Operating Officer, Ms. Tumi Sekoni, emphasised that the partnership strengthens the market’s readiness for sustainability-linked instruments and aligns with the objectives of the FMDQ Green Exchange.

She said it reinforces FMDQ’s commitment to facilitating structured finance solutions that address environmental challenges while supporting Nigeria’s long-term economic resilience.

Overall, the collaboration underscores a shared commitment to using capital markets as catalysts for environmental regeneration and climate innovation.

It advances Nigeria’s alignment with global best practices, strengthens circular-economy value chains, and positions the country as a leading destination for climate-finance innovation in Africa.