Green Economy Holds Promise of Greater Prosperity for Investors-SEC DG

Samuel Mobolaji

The director-general of Securities and Exchange Commission (SEC), Dr Emomotimi Agama has enjoined capital market community to take advantage of the enormous resources and potential of sustainable finance to build a green climate resilient economy in Nigeria and create greater prosperity for investors and Nigerians.

Agama stated this at a capacity building workshop for capital market operators on Green Finance held yesterday in Lagos. The workshop is part of an ongoing capacity building initiative administered by the African Development Bank Group and financed by the Capital Market Development Trust Fund (CMDTF) of the Bank.

The SEC DG represented by the executive commissioner operations of SEC, Mr. Bola Ajomale, emphasised that the Commission is steadfast in its commitment to champion sustainable finance initiatives as the rules on Green Bonds have already facilitated a couple of sovereign issues and multiple corporate issues.

Agama said, “the federal government through the Debt Management Office (DMO) has led the way in Africa in this regard by issuing the first sovereign green bond in December 2017. It has since followed up with another N15 billion issuance in June 2019 specifically to fund renewable energy, afforestation and transportation.

“The Commission also approved two green bond issues by North South Power Services Limited and Access Bank Plc worth N8.56 billion and N15 billion respectively to finance various infrastructural projects in the power, water and agriculture sectors of the Nigerian economy.”

The SEC DG disclosed that the Commission continues to strongly support and champion efforts to deliver coordinated and coherent policy advice, capacity building and regulatory support to leverage actions across a broad spectrum of sectors to build the momentum for a green economy, which could bring socially inclusive and environmentally sound economic transformation.

Agama said the workshop presents an opportunity to stakeholders in the capital market to enrich the discussion on Green Finance and more importantly, take concerted action on issues relating to climate change and sustainability.

He said, embracing green finance remains a critical approach to addressing these challenges adding that it is crucial to involve key stakeholders in conversations that promote green finance.

He expressed excitement at the promising trend of sustainability-themed funds gaining prominence, especially in developed countries, saying this reflects a growing global adoption of green finance criteria within the investment community, and notably, green finance performance has shown a strong correlation with overall financial performance.

Agama urged stakeholders, intermediaries, issuers, investors, and regulators, to support this transition through their business activities by directing financial flows towards more sustainable and climate-friendly solutions, divesting from unsustainable practices, setting standards and frameworks, and integrating green finance into investment decisions and practices.

The executive director, Climate Transition Limited, Mr. Olumide Lala said the transition to a green economy is essential for Nigeria’s sustainable development, and green finance is a critical component of this transition.

Lala said the desertification of the Sahara is impeding the world, as people are moving towards the south, water resources is being compromised and there is climate risk associated with the financial investments people make.

“There is the need to reduce emission, essentially the message today is change. The regulator is here trying to reassure investors that the governance structure is there to ensure the safety of the money they are investing. The governance structure is constantly being enhanced in line with global values,” he added.