The Nigerian Exchange Limited (NGX) has unveiled an impact board, a platform for listing sustainability instruments, following approval from the Securities and Exchange Commission (SEC).
The initiative was announced during a closing gong ceremony to honour minister of environment, Balarabe Lawal, and commemorate the 8th green bond advisory group meeting in Lagos.
Sustainability instruments, such as green bonds and green equities, are used to secure investments that provide environmental benefits.
Lawal, who is the co-chair of the green bond advisory group, interacted with investors and stakeholders as well as key figures from Nigeria’s financial and environmental sectors, about the proposed federal government green bond issuance, brought together.
The NGX said the 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, adding that this is why the market was approached.
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.”
