Business is booming.

Finance Major Constraints to Implementation of climate Adaptation

By Fatima Saka 

The Nigerian Exchange Limited has revealed that the limited flow of

Climate finance remains a major constraint in implementation of the mitigation and adaptation actions in Nigeria and other African countries.

At the signing of a Memorandum of

Understanding (MoU) with International

Finance Corporation (IFC) held recently in Lagos.

The Chief Executive Officer, NGX, Temi Popoola, said sub-Saharan Africa is the least responsible for global climate change but remains one of the most vulnerable to the risk posed by the change.

The theme: “Green and Sustainability Bond”

Popoola assured that the theme illustrates 

exchange is committed to promoting the

development of long-term financial

solutions that take into account the

financial risks and possibilities posed by

climate change, despite the limited flow

of climate finance.

“Despite having contributed the least to

global warming and having the lowest

emissions, Africa faces exponential

collateral damage, posing systemic risks

to its economies, infrastructure

investments, water and food systems,

public health, agriculture, and livelihoods,

threatening to undo its modeest

development gains and slip into higher

levels of extreme poverty.

“The African Development Bank

estimates that Africa will need

investments of over $3 trillion in

mitigation and adaptation by 2030 in

order to implement its Nationally

Determined Contributions (NDCs).

However, the limited flow of climate

“The African Development Bank

estimates that Africa will need

investments of over $3 trillion in

mitigation and adaptation by 2030 in

order to implement its Nationally

Determined Contributions (NDCs).

However, the limited flow of climate

finance remains a major issue for the

implementation of mitigation and

adaptation actions in Africa, particularly

Nigeria” he stated.

He further stated that the issuance

of the first N10.69 billion or about $25.8

million five-year green bond in 2017 to

fund renewable energy development

projects. This followed the Federal

Government of Nigeria’s ratification of

the Paris Climate Agreement, which

necessitated the need for long-term

financing to meet Nigeria’s NDCs in

lowering greenhouse gas emissions.

Popoola noted out that the bourse in its

collaboration with internationally

recognised organisations such as the IFC

Popoola also observed that the bourse in its collaboration with internationally

recognised organizations such as the IFC

is targeted at sharing valuable green

finance experiences and best practices

as well as promoting the development of

sustainable finance market segments for

supporting the government,

policymakers, regulators, financial

market participants, domestic and

international thought leaders, investors,

and other market stakeholders.

Also, Kalim Shah Senior Country Manager, IFC, said the corporation is partnering with

NGX on sustainable financial products in

the capital market and country at large.

He noted the MoU signed with Exchange

targeted at facilitating knowledge

sharing with capital market stakeholders

on green social and sustainability.

Shah further explained that IFC has

invested more than $10billion in green

bonds globally since 2010 across 178

bonds in 20 currencies.

Meanwhile, according to the National Economic Empowerment and Development Strategy (NEEDS) has identified the challenges to development in Nigeria which includes: the low per capita growth inefficiencies, unsustainable public sector spending; domestic debt; low productivity; poverty; dysfunctional educational system , weak institutions, poor infrastructure, poor energy situation, capacity constraints, weak monitoring framework, weak data management culture, slow development of the private sector, poor public sector performance, import dependency.

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