(3 minutes read)
- The value of Nigeria’s green bonds market has increased to N55.52 billion within the last four years, according to the Nigerian Exchange Limited (NGX)
- This disclosure was made by Chief Executive Officer of the Nigerian Exchange Limited (NGX), Temi Popoola
- He was addressing a Sustainable Finance Training 2021 hosted by the exchange, in collaboration with the International Finance Corporation (IFC).
The value of Nigeria’s green bonds market has increased to N55.52 billion within the last four years, according to the Nigerian Exchange Limited (NGX). This disclosure was made by Chief Executive Officer of the Nigerian Exchange Limited (NGX), Temi Popoola. He was addressing a Sustainable Finance Training 2021 hosted by the exchange, in collaboration with the International Finance Corporation (IFC).
The exchange is committed to fostering the growth of sustainable financial products. These products are designed to integrate the financial risks and opportunities associated with climate change and other environmental challenges.
According to Popoola sub-Saharan Africa is the least responsible for global climate change; yet it risks from climate change is more than any other region. The World Meteorological Organization State of the Climate in Africa Report 2022 revealed that the investment in climate adaptation for sub-Saharan Africa would cost about US $30 to US$50 billion yearly over the next decade. However, the limited flow of climate finance remains a major issue for the implementation of projects that reduces the impact of climate change.
He said that the green bond product paper, which was embraced and championed by the Debt Management Office (DMO) and the Federal Ministry of Environment, will to some extent, provide a solution to the huge investments involved for addressing climate change.
The issuance of the bonds paved the way for the emergence of the corporate green bond market with N15 billion, 15.5 per cent five-year fixed rate senior unsecured green bond by Access Bank and N8.5 billion, 15.6 per cent 15-year guaranteed fixed rate senior green infrastructure bond by North South Power Company.
