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NGX champions sustainable finance solutions for Nigeria’s environmental challenges

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Nigerian Exchange Limited (NGX) has taken bold strides in championing sustainable finance solutions, positioning itself as a catalyst for positive change amidst the realities of environmental degradation,

In 2016, NGX launched the Green Bond Market Development Programme, a groundbreaking initiative aimed at fostering innovative financial instruments aligned with Nigeria’s climate mitigation and adaptation targets. This program laid the foundation for the issuance of Nigeria’s maiden sovereign green bond in 2017, valued at a significant N10.69 billion (approximately $26 million at the time).

The landmark green bond issuance was a collaborative effort between NGX, the Debt Management Office (DMO), and the Federal Ministry of Environment. The success of Nigeria’s inaugural sovereign green bond paved the way for subsequent issuances, with corporate trailblazers like Access Bank and North South Power Company leading the charge. These entities have issued corporate green bonds, collectively contributing over $136 million to the nation’s burgeoning green finance market, as reported by the Nigerian Investment Promotion Commission (NIPC).

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Notably, several Nigerian states, including Gombe, are exploring the issuance of green bonds to finance developmental challenges and combat climate change issues like desertification and water scarcity. This decentralized approach underscores the growing recognition of sustainable finance as a powerful tool for achieving sustainable development goals at both national and sub-national levels.

Recognizing the need for global collaboration in tackling environmental challenges, NGX has forged strategic partnerships with international organizations, further amplifying its impact. One such partnership is with the Luxembourg Stock Exchange (LuxSE), a leading global platform for sustainable finance. This groundbreaking collaboration facilitates the cross-listing and trading of green bonds, enhancing their visibility and attractiveness to international investors. By creating a robust platform for green finance, this partnership enables Nigerian green bonds to gain global recognition and attract much-needed investment from environmentally conscious investors worldwide.

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