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Business News of Monday, 3 January 2022


FG to partner NGX on climate disclosure, data

Nigerian Exchange Limited (NGX) logo Nigerian Exchange Limited (NGX) logo

The Federal Government of Nigeria, through the Minister of State for Environment, Chief Sharon Ikeazor, says it will continue to collaborate with Nigerian Exchange Limited (NGX) to build a framework that will help issuers navigate climate disclosure and ultimately improve the climate data available to the investment and finance community.

Ikeazor stated this during the Digital Closing Gong Ceremony hosted by NGX to mark the end of trading for the year 2021.

Ikeazor noted that NGX has played an exemplary role in Nigeria’s commitment to mitigating the effects of climate change. She added that climate change is a serious and long-term threat to which Nigeria has continued to show commitment to the goals of the Paris Agreement on Climate Change with its revision of the Nationally Determined Contributions (NDCs) pre-COP 26.

“With the step taken immediately after COP26, Nigeria has further demonstrated its commitment towards the Paris Agreement on Climate Change. As part of measures to comply with the National Determined Contributions (NDC) in emissions reduction to climate change in Nigeria, the Federal Government launched the Nigeria Deep Decarbonization Project”, she explained. The Minister added that investors are increasingly working together in response to climate change and added that the Federal Government would continue to engage NGX on climate disclosure and data.

“I hope there will be a continuous collaboration between the NGX and the Federal Ministry of Environment to build a framework that will help issuers navigate climate disclosure, associated engagement with their shareholders, and ultimately improve the climate data available to the investment and finance community. Partnership with NGX will provide investors with important new tools to enable capital reallocation”, the Minister said.

In welcoming the Minister, the Chief Executive Officer, NGX, Temi Popoola, said, NGX remains resolute in its commitment to promoting sustainable finance because it recognises that urgent action is required to combat climate change and its impact as incorporated in the Paris Agreement on Climate Change and Goal 13 of the Sustainable Development Goals (SDGs).

Popoola said, “We are committed to fostering the growth of sustainable financial products which integrate the financial risks and opportunities associated with climate change and other environmental challenges. NGX has shown strong commitment to sustainable finance over the years.

In 2016, NGX collaborated with the Ministry of Environment and the Debt Management Office (DMO) to deepen the Green Bond market. This effort led to the issuance of the maiden N10.69 billion ($25.8 million) 13.48 per cent 5-year green bond in 2017 to fund projects to develop renewable energy. The second tranche, N15 billion ($36.1 million) 14.5 per cent 7-year Green Bond was issued in June 2019 and was over-subscribed”.