NGX unveils impact board for listing of green bonds

The Nigerian Exchange Limited (NGX) has unveiled its impact board, a platform for listing sustainability instruments, following approval from the Securities and Exchange Commission (SEC).

Sustainability instruments, such as green bonds and green equities, are used to secure investments that provide environmental benefits.

This initiative was announced during a closing gong ceremony on Wednesday to honour Balarabe Lawal, minister of environment, and commemorate the 8th green bond advisory group meeting in Lagos.

The ceremony, where Lawal, co-chair of the green bond advisory group, interacted with investors and stakeholders about the proposed federal government green bond issuance, brought together key figures from Nigeria’s financial and environmental sectors.

Attendees include Emomotimi Agama, director-general of SEC, alongside delegates from the Debt Management Office (DMO), ministry of environment, issuers, and issuing houses.

According to NGX, this launch marks a crucial step in its steadfast commitment to integrating sustainability into the foundation of Nigeria’s capital market.

It said by providing a high-visibility platform for sustainability instruments, NGX seeks to initiate a new era of responsible investing, offering innovative issuers access to capital driven by purpose.

The company said the innovative platform not only represents NGX’s vision for the future but also sets a new standard for responsible investing in Africa’s largest economy, potentially serving as an example for other emerging markets.

Lawal said it is necessary to secure funds to address Nigeria’s urgent environmental challenges, such as flooding, pollution, and deforestation.

He said this is why the market was approached.

Agama affirmed SEC’s commitment to strengthening the sustainable finance market and expanding it with instruments that contribute to the country’s development.

“We are ready to bolster the sustainable finance market, aiming to deepen it with diverse instruments that contribute to Nigeria’s sustainable development,” he said.

Umaru Kwairanga, chairman of NGX Group, highlighted NGX’s capabilities, saying the bourse possesses 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, said the impact board has the potential to encourage issuers, including the government, to utilise the market for financing strategic and sustainability-oriented projects.

Jude Chiemeka, chief executive officer (CEO) of NGX, said the launch is more than just a new platform, describing it as “a paradigm shift in our approach to finance and development”.

According to NGX, the synergy between governmental environmental strategies and market-driven solutions holds the potential to expedite the country’s advancement toward its sustainability objectives.

NGX said as Nigeria enters this new era of sustainable finance, the impact board is positioned to attract investments from both local and international sources, fostering growth and advancing the nation’s sustainable development agenda.