Nigeria Exchange Limited (NGX) Sustainable Finance, A Crucial Tool for Economic Transformation

Explore how the Nigerian Exchange Limited (NGX) is championing sustainable finance as a transformative tool for Nigeria’s economic growth.

With initiatives like the ESG Program rollout and NGX Carbon Plus, NGX is setting new standards for responsible investing and ESG practices, helping to shape a resilient and sustainable future for the Nigerian economy.

The Nigerian Exchange Limited (NGX), a key player in Nigeria’s financial sector, has recently emphasized the importance of sustainable finance as a tool to reshape Nigeria’s economy.

These views were expressed during an Investor Engagement session centered on “Empowering Responsible Investing – ESG Disclosure.”

Unveiling the Power of Sustainable Finance

Mr. Jude Chiemeka, Divisional Head of Capital Markets at NGX, argues that sustainable finance is not merely a buzzword in the financial world.

Rather, it is a transformative force capable of reshaping our economy and society.

Recognizing this potential, NGX has proactively embraced this vision, implementing measures to advance responsible investment practices.

The Role of GRI in NGX’s Mission

NGX partnered with the Global Reporting Initiative (GRI) for this engagement session, intending to educate the investor community on the importance of incorporating Environmental, Social, and Governance (ESG) data into their investment decisions.

GRI’s role in shaping the global sustainability reporting landscape has been significant, and Chiemeka lauded GRI’s dedication to building a more sustainable future.

CBN’s Efforts Towards Sustainable Banking

Dr. Aisha Mahmood, Special Adviser to the Governor of the Central Bank of Nigeria (CBN) on Sustainable Banking, shed light on CBN’s endeavors to ensure sustainable banking practices.

CBN is currently revising the Nigerian Sustainable Banking Principles to include climate risk reporting for the banking sector.

The Importance of ESG Information to Investors

Mr. Douglas Kativu, Director of GRI Africa, emphasized why ESG information is crucial to investors.

He advised companies to align their disclosures with GRI standards, reinforcing that investors are keen on understanding the major ESG risks and opportunities facing a business and how these factors are measured and monitored.

NGX’s Commitment to Responsible Investing

In their quest to foster responsible investing and sustainable finance, NGX is driving conversations, creating innovative products, and forging strategic partnerships.

Mrs. Irene Robinson-Ayanwale, the Divisional Head of the Business Support Services Division and General Counsel at NGX, reiterated NGX’s commitment to these initiatives.

NGX’s ESG Program Rollout

Aligned with their commitment, NGX is currently working on an ESG Program rollout that will further enable companies to manage material ESG risks and leverage the opportunities that will be created.

The goal of this program is to foster a culture of sustainability and responsible investing within the Nigerian financial sector.

NGX Carbon Plus Initiative

Alongside the ESG Program, NGX is developing the NGX Carbon Plus initiative, which will recognize companies that demonstrate their commitment to reducing their carbon emissions through practical and impactful projects.

This initiative aims to galvanize sustainable action and contribute to mitigating the challenges posed by climate change.

Conclusion: The Future of Sustainable Finance in Nigeria

With these initiatives in place, NGX is at the forefront of promoting sustainable finance in Nigeria. The role of sustainable finance in shaping the Nigerian economy is more vital now than ever.

By focusing on responsible investment practices and ESG factors, NGX is paving the way for a more resilient and sustainable Nigerian economy.

The initiatives discussed here not only underscore NGX’s commitment to sustainable finance but also serve as a call to action for other financial institutions in Nigeria.

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