The Minister of Environment, Balarabe Lawal has officially launched the Nigeria Exchange Group (NGX) Impact Board to enhance collaboration between the public and private sectors in achieving the country’s environmental sustainability goals.
The Impact Board, a dedicated platform for listing sustainability instruments, aims to integrate sustainability into the core of Nigeria’s capital market. It was unveiled during a closing-gong ceremony in Lagos on Wednesday to commemorate the eighth Green Bond Advisory Group meeting.
Speaking at the launch, the minister emphasised the initiative as a testament to Nigeria’s commitment to sustainable development and responsible investment. He stated, “The NGX Impact Board represents a significant milestone in our nation’s journey towards integrating environmental, social and governance (ESG) criteria into the core of our financial and economic systems. By establishing this board, we are creating a platform that will not only attract sustainable investments but also promote transparency, accountability, and corporate responsibility.”
The minister also highlighted that environmental sustainability is at the heart of the national agenda, as Nigeria faces unique environmental challenges, including climate change, deforestation and pollution. Addressing these issues requires innovative solutions and collaborative efforts from all sectors of society, including the financial sector. “The NGX Impact Board provides a strategic avenue for mobilising the necessary capital to fund green projects and support businesses that prioritise sustainable practices,” he added.
On the sidelines of the event, Balarabe who co-chairs the Green Bond Advisory Group meeting, engaged with investors and stakeholders on the proposed Federal Government Green Bond issuance, seeking their support in mitigating Nigeria’s environmental crises. “With issues like flooding, pollution and deforestation, we urgently need funds to tackle them. This is why we are approaching the market,” he said.
Commending the Nigeria Exchange Group for its leadership and vision in launching the Impact Board, Balarabe noted that the initiative aligns with global trends and positions Nigeria as a forward-thinking nation ready to embrace the principles of sustainability and responsible investment. This is evident in Nigeria’s active work on policies and frameworks that support the growth of green finance and encourage investments in renewable energy, waste management and conservation projects. He acknowledged the collaboration between the Ministry of Environment and the Nigeria Exchange Group as crucial in advancing these goals.
A statement from the NGX mentioned that the launch of the Impact Board followed approval from the Securities and Exchange Commission. Group chairman of the Nigerian Exchange Group, Dr. Umaru Kwairanga highlighted NGX’s capabilities, stating, “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.”
This launch marks a pivotal moment in NGX’s commitment to integrating sustainability into 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.
In April, Lawal revealed that the government will issue a third green bond to facilitate environmental financing. The government had issued its first green bond in 2017, a N10.69bn bond with a five-year tenor to fund renewable energy projects. With this successful issuance, Nigeria became the first country in Africa to take such an initiative. In 2019, the government announced its second green bond issuance of up to N15bn.
With the continuous efforts to finance sustainable projects, Nigeria aims to address its environmental challenges while promoting economic growth through responsible investment and sustainable practices.
