SEC partners AfDB to boost Nigeria’s green finance leadership

The Securities and Exchange Commission, in collaboration with the African Development Bank, is enhancing Nigeria’s role as Africa’s foremost hub for green and sustainable finance.

This is made known in a statement made available by the commission on Sunday in Lagos.

The commission said that it aimed to establish Nigeria as a focal point for green and sustainable finance in Africa, aligning with global green standards.

To this end, the regulator said that it would be equipping capital markets operators with the necessary knowledge and skills, to support the development and issuance of green bonds and other sustainable financial instruments.

SEC stated that this reinforces Nigeria’s commitment to environmental sustainability and economic resilience.

According to the commission, it will host a capacity-building workshop for capital markets operators on Green Finance on July 23 in Lagos.

“This strategic initiative, funded by the Capital Markets Development Trust Fund (CMDTF) and administered by the AfDB, is a vital step in consolidating these gains and ensuring the Nigerian capital market meets the goal of becoming Africa’s deepest and most liquid capital market.

“Over the past decade, the Nigerian capital market has experienced substantial growth, marked by increased activities in both equity and bond markets.

“In alignment with global sustainability mandates, SEC launched rules for green bonds issuance in December 2018, creating a conducive environment for green finance,” the commission said.

According to SEC, delegates from various sectors of the financial ecosystem, including investors, issuers, regulators government agencies and market intermediaries among others would attend the workshop.

The commission noted that participants in the workshop would gain several key benefits, including enriched discussions and learning experiences from a diverse group of participants.

It said that it also includes insight into the entire green finance ecosystem from regulatory frameworks to investment strategies and networking opportunities.

Commenting through the statement, the Director General of SEC, Dr Emomotimi Agama, said the regulator was committed to fostering a sustainable financial ecosystem in Nigeria.

According to Agama, the workshop is part of the commission’s broader strategy to integrate green finance into the capital markets and attract more sustainable investments.

He said: “By enhancing the capabilities of our market operators, we are not only promoting environmental stewardship but also driving long-term economic growth.

“The primary objective of the workshop is to enhance the knowledge and understanding of capital market operators regarding green finance.

“By developing the necessary skills and competencies, the workshop aims to: promote collaboration and networking among stakeholders, and support regulatory compliance with SEC’s rules.

“Attract more sustainable investments and Integrate Environmental, Social, and Governance (ESG) factors into investment strategies.”

He explained that other objectives of the workshop were to enhance the reputation and credibility of capital market operators and facilitate funding for innovative, environmentally friendly projects driving sustainable economic growth.

Also, Co-founder and Executive Director of Climate Transition Ltd., Mr Olumide Lala, stated that the transition to a green economy was essential for Nigeria’s sustainable development, and green finance as a critical component of the transition.

Lala said the workshop would provide market operators with the tools they needed to drive the change and contribute to a more resilient and sustainable economy.

NAN.