SEC approves NGX impact board to boost sustainability

The Securities and Exchange Commission has granted Nigerian Exchange Limited to launch its Impact Board, a platform to enhance the listing and visibility of sustainability-focused instruments.

In a statement made available to our correspondent on Saturday, this initiative was announced during a Closing Gong Ceremony in Lagos.

According to the statement, the NGX Impact Board is designed to cater to green financial products, address climate change and promote sustainable economic practices.

The ceremony, which was held at the NGX headquarters recently, featured attendees including the Minister of Environment and Co-Chair of the Green Bond Advisory Group Meeting, Balarabe Lawal, who underscored the importance of the initiative, particularly as the government prepares for a proposed Green Bond issuance aimed at furthering environmental sustainability.

The Director-General of the SEC, Emomotimi Agama, emphasized the regulatory body’s support for innovations that advance sustainability and drive responsible investment practices in Nigeria’s capital market.

“The NGX Impact Board is expected to provide a dedicated platform for issuers of green bonds and other sustainability instruments, facilitating greater investor participation in environmentally friendly projects. This move is anticipated to attract both domestic and international investors who are increasingly prioritizing ESG factors in their investment decisions,” he said.

The Group Managing Director of NGX Group, Temi Popoola, stressed that the Impact Board will enhance transparency and accountability in sustainability investments, fostering trust and confidence among investors.

“The introduction of the Impact Board also comes in conjunction with ongoing discussions about the federal government’s Green Bond issuance, which is aimed at financing projects that contribute to environmental conservation and sustainable development. The NGX’s initiative will provide a robust framework for the successful implementation and management of such bonds,” he noted.

He added that the approval and launch of the NGX Impact Board represent a step forward in Nigeria’s financial sector, positioning the country as a leader in sustainable finance in the region.