SEC Approves NGX Impact Board To Enhance Sustainability

The Securities and Exchange Commission (SEC) has granted approval to the Nigerian Exchange Limited (NGX) to launch its Impact Board, a specialised platform aimed at enhancing the listing and visibility of sustainability-focused financial instruments.

The announcement was made during a Closing Gong Ceremony held at the NGX headquarters in Lagos on July 27, 2024.

The NGX Impact Board is designed to accommodate green financial products and address climate change by promoting sustainable economic practices. The initiative underscores Nigeria’s commitment to advancing environmental sustainability in the financial sector.

The event featured prominent attendees, including Honourable Minister of Environment and Co-Chair of the Green Bond Advisory Group Meeting, Mr. Balarabe Lawal, who highlighted the initiative’s significance, especially in light of the government’s upcoming Green Bond issuance.

This issuance is part of a broader strategy to support environmental conservation and sustainable development.

Director-General (DG) of the SEC, Mr. Emomotimi Agama, expressed the regulatory body’s endorsement of the NGX Impact Board, emphasising its role in fostering responsible investment practices.

“The NGX 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,” Mr. Agama stated.

He noted that this initiative would attract both domestic and international investors, who are increasingly focusing on Environmental, Social, and Governance (ESG) factors in their investment decisions.

Group Managing Director (MD) of NGX Group, Mr. Temi Popoola, also stressed the importance of the Impact Board in enhancing transparency and accountability in sustainability investments.

“The introduction of the Impact Board will foster trust and confidence among investors,” Mr. Popoola said, stating that the board will provide a robust framework for the successful implementation and management of green bonds and other sustainability-focused financial instruments.

The launch of the NGX Impact Board marks a significant milestone in Nigeria’s financial sector, positioning the country as a leader in sustainable finance within the region.