NGX Group Shows Commitment to Market Development Through Collaboration

Nigerian Exchange Group Plc (NGX Group) has shown its strong commitment to market development through partnerships and collaborations across the ecosystem both locally and internationally. Earlier this week, the Group Managing Director/Chief Executive Officer, NGX Group, Mr. Oscar N. Onyema, OON facilitated a session at the Lawmakers’ Retreat on the Investment and Securities Bill where he delved into the provisions for Exchanges and other related matters.

What is interesting to note is that Mr. Onyema has become a key voice of advocacy for exchanges internationally evidenced by his election to the board of the World Federation of Exchanges (WFE) in September 2021. It would be recalled that NGX Group – The Nigerian Stock Exchange at the time – gained membership into the WFE in 2014 and has continued to support the WFE sustainability principles thereby playing a leading role in fostering the growth of sustainable finance within the sub-region.

Speaking on some of the key outcomes, Mr. Onyema, said, “Since we have been members of WFE, NGX Group of Companies has played a leading role in fostering the growth of long-term sustainable finance by leading the development of the green bond market in Nigeria. Following the submission of a proposal to the Ministry of Environment, Debt Management Office (DMO) and other stakeholder institutions in 2017, a multi-agency task force comprising the Honorable Minister of Environment, Group Chief Executive Officer, NGX Group and other leading stakeholders was constituted, whose leadership led to the issuance and listing of the inaugural Federal Government of Nigeria (FGN) Sovereign green bond in 2018.”

Subsequently, two corporate green bonds and a Series II FGN Sovereign green bond have been listed on Nigerian Exchange Limited. In furthering its green bond market development initiatives, NGX signed a Memorandum of Understanding (MoU) with Luxembourg Stock Exchange (LuxSE), to cooperate in promoting cross listing and trading of green bonds in Nigeria and Luxembourg. The MoU was signed during the 2019 WFE annual meeting in Singapore.

NGX Group of Companies has also supported WFE Sustainability Principle 2 and fulfilment of the SSE requirement for Exchanges to provide written guidance on Environmental, Social and Governance (ESG) by unveiling the Sustainability Disclosure Guidelines in March 2019. This was supported by the launch of the Facts Behind the Sustainability Report (FBSR) platform for listed companies to showcase their progress in incorporating sustainability into their business processes, thereby enabling investors gain access to decision-useful ESG information.

Beyond the WFE, NGX Group of Companies boasts an ongoing collaboration with Global Reporting Initiative (GRI), where it has implemented various capacity development initiatives to raise awareness and build capacity on key sustainability issues across its ecosystem. The Group has also put its money where its mouth is investing in key market infrastructure companies to further deepen the offerings of the Nigerian capital market with major stakes in NASD, FMDQ, Central Securities Clearing System (CSCS), several Fintech companies amongst others.