Capital market stakeholders gathered in Lagos for a workshop on ‘ESG and Sustainable Finance – The Future of Investments’ organised by the Securities and Exchange Commission (SEC) in collaboration with the Financial Centre for Sustainabilities.
During the workshop, participants advocated for the adoption of Environmental, Social, and Governance (ESG) compliant products to ensure sustainable financing for businesses.
The global community has already embraced ESG, and stakeholders emphasised that Nigeria should not be left behind in this critical movement. Director-general of SEC, Lamido Yuguda, urged all business stakeholders to support the creation of an economy that encourages sustainable business practices.
He highlighted the revised Nigerian Capital Market Masterplan, which places a strong emphasis on creating awareness and promoting ESG-compliant products through educational and advocacy campaigns.
Yuguda expressed his satisfaction in witnessing a growing number of institutional investors and funds adopting various ESG investing approaches due to their potential positive impact on individuals, businesses, and society.
He stressed that Nigeria has a unique opportunity to drive positive changes through the promotion of ESG and sustainable finance in its financial markets.
The Nigerian bond market, in particular, is expected to experience significant growth, offering opportunities for expanded product offerings and long-term financing for businesses while promoting environmental protection, reducing inequality, and fostering economic prosperity.
Divisional head of Capital Markets at Nigerian Exchange Limited (NGX), Jude Chiemeka, emphasised the importance of ESG compliance and data transparency in attracting investments and enhancing stock liquidity in the Nigerian capital market.
He advised investors to consider ESG-compliant companies that provide transparent and high-quality disclosures, as there is a strong correlation between ESG disclosures and corporate performance.
Chiemeka also lauded SEC for its efforts in establishing a sustainable finance framework, especially regarding green bonds, which solidified Nigeria’s position as the first sovereign country in Africa to issue green bonds.
CEO of CSCS, Haruna Jalo-Waziri, highlighted the importance of sustainability and governance in dealing with environmental concerns. He emphasised that ESG-compliant companies would find it easier and cheaper to source funds, reflecting the growing interest of investors in sustainable businesses.
The workshop served as a platform to discuss the importance of ESG-compliant products and their role in shaping a sustainable and prosperous future for Nigeria’s capital market.
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