Assessment of Forest Conservation Using Green Bonds as a Tool in Southwestern Nigeria

Abstract

Green bond is a loan security issued to raise capital precisely for projects that contribute positively to climate, environment and conservation (land and forests). There was little or no information on availability of green bonds among forest stakeholders in Nigeria. This study investigated the level of awareness and accessibility of green bond as a financial tool for forest conservation in Southwestern Nigeria; one of the countries that do not have a well-developed green bond market. A total of 150 copies of structured questionnaire were distributed to the respondents. A multistage sampling technique was adopted for data collection from the study area. Data obtained were collated on Microsoft excel and subjected to descriptive and inferential statistics using Statistical Package for Social Sciences (SPSS). In identifying the level of awareness of respondents on green bond it was discovered that majority (68.3%) of respondents were indirect forest stakeholders and have knowledge on forest conservation. On the other hand, majority of the respondents (70.3%) have not heard about green bonds while 81.4% of the respondents did not understand the term green bond as a sustainable finance instrument for forest conservation. The study also revealed that majority 92.4% of the respondents did not have access to green bond and 91.7% of the respondents reported that it has never been issued to them. Conclusively, the level of awareness and access to green bond among the forest stakeholders for effective forest conservation was very low.