Lagos, July 11, 2024 – Nigerian Exchange Limited (NGX) has unveiled its Impact Board, a dedicated platform for listing sustainability instruments.
This followed an approval from the Securities and Exchange Commission (SEC).
This initiative was announced in Lagos on Wednesday during a Closing Gong Ceremony in honour of Mr. Balarabe Abbas Lawal, the Minister of Environment, and to commemorate the 8th Green Bond Advisory Group Meeting.
The ceremony, which saw Lawal, Co-Chair, Green Bond Advisory Group Meeting, engage with investors and stakeholders on the proposed federal government Green Bond issuance, brought together key figures in Nigeria’s financial and environmental sectors.
Attendees included Dr. Emomotimi Agama, the Director-General of the SEC, alongside delegates from the Debt Management Office, Ministry of Environment, issuers, and issuing houses.
This launch marks a pivotal moment in NGX’s steadfast commitment to integrating sustainability into the core of Nigeria’s capital market.
By providing a high-visibility platform for sustainability instruments, NGX aims to usher in a new era of responsible investing, offering forward-thinking issuers access to purpose-driven capital.
Addressing the pressing environmental challenges facing the country, Mr. Lawal emphasized, “With issues like flooding, pollution, and deforestation, we urgently need funds to tackle them. This is why we are approaching the market.”
His sentiment was echoed by Agama, who affirmed SEC’s support: “We are ready to bolster the sustainable finance market, aiming to deepen it with diverse instruments that contribute to Nigeria’s sustainable development.”
Umaru Kwairanga, Group Chairman of Nigerian Exchange Group (NGX Group) highlighted NGX’s capabilities, saying: “We possess 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, the Chairman of NGX, underscored the significance of the Impact Board, noting its potential to encourage issuers like the Federal Government to leverage the market for financing strategic, sustainability-focused projects.
Further emphasizing the Group’s commitment, Mr. Temi Popoola, Group Managing Director and CEO of NGX Group, said: “We are dedicated to driving sustainability with the right frameworks, which is why giving visibility to this class of instruments is crucial for achieving our goals.”
Jude Chiemeka, the CEO of NGX, framed the launch as more than just a new platform, describing it as “a paradigm shift in how we approach finance and development.”
This sentiment was reinforced by Abimbola Babalola, Head of Trading and Products at NGX, who highlighted the Board’s potential to foster capital-raising opportunities and create new tradeable products for investors.
The timing of the Impact Board’s launch, coinciding with the 8th Green Bond Advisory Group Meeting, which underscores the growing momentum behind sustainable finance initiatives in Nigeria.
This synergy between governmental environmental strategies and market-driven solutions promises to accelerate the country’s progress towards its sustainability goals. (GBN)
