Nigeria’s NGX Impact Board Earns SEC Approval to Boost Sustainability-Driven Investments
The Nigerian Stock Exchange (NGX) has made a significant step towards promoting sustainable and green investments in the country’s capital market with the approval of its Impact Board. According to a statement released on Saturday, the Securities and Exchange Commission (SEC) has given the green light for the establishment of the Impact Board, a platform dedicated to listing and promoting sustainability-focused instruments in Nigeria’s targeted $1 trillion economy.
The NGX Impact Board is designed to support green financial products, address climate change, and promote sustainable economic practices. The initiative gained importance as the government prepares to launch a proposed Green Bond issuance aimed at driving environmental sustainability. The Director-General of SEC, Emomotimi Agama, commented on the initiative, emphasizing the regulatory body’s support for innovations that advance sustainability and promote responsible investment practices in Nigeria’s capital market.
“Investors are increasingly prioritizing environmental, social, and governance (ESG) factors in their investment decisions, and our Impact Board is expected to provide a dedicated platform for issuers of green bonds and other sustainability instruments, facilitating greater investor participation in environmentally friendly projects,” Agama noted.
The Group Managing Director of NGX Group, Temi Popoola, added that the Impact Board will enhance transparency and accountability in sustainability investments, fostering trust and confidence among investors. This move is expected to attract domestic and international investors seeking to invest in environmentally conscious projects.
The approval of the Impact Board marks a significant milestone in Nigeria’s efforts to foster sustainable development and promote responsible investment practices in the capital market. This development builds on the SEC’s recent approval of the NGX’s Invest digital platform, aimed at enhancing public offerings and rights issues in the country’s capital market.
