The Nigerian Exchange Limited (NGX) has introduced its impact board, a platform designed for listing sustainability instruments, with approval from the Securities and Exchange Commission (SEC).
Sustainability instruments, including green bonds and green equities, aim to secure investments that offer environmental benefits.
This initiative was announced during a closing gong ceremony on Wednesday in honor of Balarabe Lawal, the Minister of Environment, coinciding with the 8th green bond advisory group meeting in Lagos.
During the ceremony, Lawal, who co-chairs the green bond advisory group, engaged with investors and stakeholders about the federal government’s upcoming green bond issuance. The event drew key figures from Nigeria’s financial and environmental sectors, including Emomotimi Agama, Director-General of the SEC, along with representatives from the Debt Management Office (DMO), the Ministry of Environment, issuers, and issuing houses.
NGX stated that this launch is a significant step in its ongoing effort to embed sustainability within Nigeria’s capital market. By providing a prominent platform for sustainability instruments, NGX aims to usher in a new era of responsible investing, giving innovative issuers access to capital with a purpose.
The innovative platform reflects NGX’s vision for the future, setting a new standard for responsible investing in Africa’s largest economy and potentially serving as a model for other emerging markets.
Lawal emphasized the need to secure funds to tackle Nigeria’s urgent environmental challenges, such as flooding, pollution, and deforestation, highlighting the importance of the market’s involvement.
Agama reiterated the SEC’s dedication to enhancing the sustainable finance market with instruments that contribute to the nation’s development. “We are committed to bolstering the sustainable finance market, aiming to expand it with diverse instruments that support Nigeria’s sustainable development,” he said.
Umaru Kwairanga, Chairman of NGX Group, praised the exchange’s capabilities, noting that it has the “capacity, resources, and technology to raise the funds required by the federal ministry of environment and the Nigerian economy to achieve the goals outlined in the Paris Agreement and the Sustainable Development Goals.”
Ahonsi Unuigbe, Chairman of NGX, mentioned that the impact board could encourage issuers, including the government, to utilize the market for financing strategic and sustainability-oriented projects.
Jude Chiemeka, CEO of NGX, described the launch as more than just a new platform, calling it “a paradigm shift in our approach to finance and development.”
