FG and NGX collaborate to address environmental challenges
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FG and NGX collaborate to address environmental challenges

The Federal Ministry of Environment and the Nigerian Exchange Limited have partnered to address environmental issues in the country.

The aim of this cooperation is to use the capital market to finance green projects aimed at promoting sustainable development and environmental protection.

This was disclosed by NGX Group Chairman, Umar Kwairanga, during the ‘NGX Impact Board Opening and Closing Ceremony’ in Lagos State on Wednesday.

Umar further disclosed that the Securities and Exchange Commission intends to launch N20 green bonds to combat climate change and enhance environmental resilience.

He stressed the importance of this collaboration, stating: “The $1 trillion economy will be achieved. We had earlier welcomed the state government and we intend to release N20 billion to support the economy in green bonds in partnership with the state governor. We will raise the issue of sovereign green bonds. The Nigerian capital market, under the leadership of the SEC, is up to the task and the paper issue has gone.”

Nigerian Capital Market Doyen Rasheed Yusuf highlighted the critical moment of the initiative, noting, “We are very happy that you are here. This is a period where we have environmental issues and it reminds me that it is time to take care of our environment. We need to work with the ministry.”

Environment Minister Balarabe Lawal stressed the urgent need to provide financial resources to address environmental issues such as flooding, pollution and health crises.

“We all know what our environment is going through, such as the floods in Lagos and the North. We need funding for these issues. We want to join forces with the stock exchange to make this an annual event and address these critical issues,” Lawal said.

In his speech, NGX Group CEO, Temi Popoola, expressed confidence that the green bond initiative would yield positive results, stating that it marked a new beginning for the stock exchange and a significant step towards achieving environmental sustainability in Nigeria.

The Director General of the Securities and Exchange Commission, Emomotimi Agama, has called on capital market operators to use green bonds and exchange-traded funds (ETFs) as key instruments to support the growth and sustainable development of the Nigerian capital market.