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
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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.
