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Agama Advocates for Leveraging Sustainable Finance for a Greener Economy in Nigeria
In a compelling address during a recent workshop on Green Finance in Lagos, Dr. Emomotimi Agama, the esteemed Director General of the Securities and Exchange Commission (SEC), called upon players in the capital market to harness the vast potentials of sustainable finance. This move is aimed at fostering a green, climate-resilient economy in Nigeria, with an eye towards amplifying prosperity for investors and the wider Nigerian populace.
The event, which marks a significant stride in the ongoing efforts to educate capital market participants about the nuances of Green Finance, was delivered under the auspices of a program spearheaded by the African Development Bank Group and underwritten by the Bank’s Capital Market Development Trust Fund (CMDTF).
Emphasizing the SEC’s dedication to sustainable finance, Agama—through the representation by Mr. Bola Ajomale, Executive Commissioner of Operations at the SEC—highlighted the successful issuance of Green Bonds, which have financed a suite of sovereign and corporate projects aimed at energy efficiency, afforestation, and sustainable transportation.
Since the groundbreaking sovereign green bond issuance by the Federal Government through the Debt Management Office in December 2017, Nigeria has positioned itself as a leader in green finance within Africa. These efforts have been complemented by subsequent issuances aimed at renewable energy and various infrastructure projects across power, water, and agriculture sectors by notable corporations, showcasing a burgeoning commitment to environmental sustainability within Nigeria’s economic landscape.
Dr. Agama expounded on the workshop’s role in furthering the discourse on Green Finance and its pivotal importance in confronting climate change and sustainability challenges. Elaborating on the concept of a green economy as defined by the United Nations Environment Program (UNEP), he underlined the significance of transitioning to a low carbon, resource-efficient, and inclusive economic framework. Such a transition is seen as essential to mitigating climate risks and enhancing long-term prosperity.
The alarming pace of climate change and the increasing frequency of natural disasters underscore the urgent need for concerted efforts in green finance. Dr. Agama relayed that embracing EFSG (Environmental, Social, and Governance) principles and investing in green and sustainable projects are not just ethical choices but also align with robust financial performance.
The SEC Director General’s message was clear: it is imperative for stakeholders across the board—from intermediaries and issuaries to investors and regulators—to champion environmental stewardship through sustainable financial practices. By shifting investments towards environmentally friendly solutions and away from unsustainable practices, Nigeria can pioneer a sustainable development model that benefits both the planet and its economy.
During the workshop, Mr. Olumide Lala, Executive Director of Climate Transition Limited, reinforced the urgency of addressing climate change and the essential role of green finance in achieving a sustainable development trajectory for Nigeria. He highlighted the existential threat posed by climate change, from food security challenges to displacement and water scarcity, underscoring the interconnectedness of environmental health and economic stability.
Lala’s remarks illuminated the tangible impacts of climate change felt across Nigeria and stressed the importance of investment in climate-smart infrastructure. He reassured investors of the robust governance structures in place to safeguard investments directed towards these vital green initiatives.
As Nigeria continues to navigate the complexities of climate change, the dialogue facilitated by this workshop exemplifies the proactive measures being taken to educate and mobilize the capital market toward sustainable financial practices. The collective efforts of regulators, investors, and the broader market community are crucial in transforming Nigeria into a greener, more resilient economy for future generations.
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