NGX Group launches impact board to boost sustainable investment

...As Nigeria raised 165m from green bonds

By Faridat Salifu

The Nigeria Exchange Group (NGX) has established its Impact Board towards integrating Environmental, Social, and Governance (ESG) principles into financial institutions.

The NGX Impact Board is regarded as a strategic avenue for mobilising cpitl to fund green projects and support businesses prioritizingf sustainable practices.

The board was inaugurated on Wednesday at the NGX headqurters on Customs Street, Marina, Lagos, where the Minister of Environment, Balarabe Abbas Lawal gave a keynote lecture.

Addressing the gathering, the minister said the ” initiative is a testament to our collective commitment to sustainbale development and responsible investment.”

According to the minister, the NGX Impact Board represents a crucial milestone in Nigeria’s efforts to attract sustainable investment and promote transparency, accountability, and corporate responsibility.

He said Nigeria currently faces various environmental challenges which include climate change, deforestation, and pollution noting that to address these challenges requires innovative solutions and collaboration among stakeholders across all sectors, particularly the finance sector.

The Ministry of Environment, the minister noted, is actively working on policies andframeworks to support green financeand investments in renewable energy, waste management, an conservatio projects.

”The collabortion between the ministry and the NGX is pivotal in advancing these goals,” the minister said.

While commending NGX leadership, Lawal said, ” This initiative aligns with global trends and position Nigeria as a foward-thinking nation ready to embrace sustainability principles and responsible investment.”

In a related event, the Minister of Environment, Balarabe Abbas Lawal, disclosed that the country’s first and second phase green bond issueance fetched the country the sum of $165 million and the money expended on funding projects in renewable energy, afforestation, and sustainable transportation.

The minister gave the hint on Wednesday in Lagos during the meeting of the Green Boar Advisory Group. During the meeting, he disclosed that the Federal Government is set to lunch the third phase of the Sovereign Green Bond adding that this is to reinforce the government commitment to environmental sustainability and climate -smart investments.

The initiatives, the minister noted, are pivotal in integrating sustainability into Nigeria’s national development strategy.

His words: ” The role of the private sector and capital market actors in this journey cannot be over emphasized adding that the necessity of private sector involvementbrings essential cpitl, innovation and efficiency.

Lawal noted that the forthcoming third green bond issuance will target projects aligned with Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement and the current admiistration’s Renewed Hope Agenda.

He gave assurance of commitment to ensuring transparent processes and accurate reporting , which are essential for building investor trust and fostering a conducive environment for sustainable investments.