NGX, IFC To Drive Sustainable Bond Issuance In Nigeria

The Nigerian Exchange Limited (NGX), in collaboration with the International Finance Corporation (IFC), has launched a major initiative aimed at advancing the adoption of labelled bonds in Nigeria, as part of broader efforts to mobilise sustainable finance for economic transformation.

The initiative was formalised at a technical capacity-building workshop jointly hosted by NGX and IFC under the theme: “Unlocking Sustainable Capital for the Real Sector: A Deep Dive into the Labelled Bonds Issuance Process.”

The event convened key stakeholders—including issuers, market operators, institutional investors, policymakers, and regulators—to explore practical solutions to the structural and regulatory challenges limiting the growth of Nigeria’s sustainable bond market.

Labelled bonds—including green, social, blue, and sustainability-linked bonds—are increasingly deployed globally to direct private capital into projects that promote climate resilience, renewable energy, inclusive development, and environmental sustainability.

Despite cumulative global issuance surpassing $6.2trn as of the end of 2024, Nigeria’s uptake remains modest due to gaps in structuring, certification, and disclosure frameworks.

Speaking at the event, Chief Executive Officer of NGX, Mr. Jude Chiemeka, reaffirmed the Exchange’s commitment to unlocking sustainable capital in support of national development goals.

“Sustainable finance is a critical pillar in Nigeria’s journey towards a $1trn economy. Our aim is to foster shared prosperity and long-term resilience by catalysing private sector capital for impactful investments,” he said.

Chiemeka noted that the workshop complements NGX’s broader sustainability agenda, which includes the launch of its Sustainability Disclosure Guidelines, the NGX Impact Board, and the facilitation of Nigeria’s earliest green bond listings.

Echoing this vision, IFC’s Principal Country Officer, Mr. Christian Mulamula, reiterated IFC’s support for deepening financial market infrastructure across Africa. “We share the ambition for Nigeria to become a continental leader in sustainable and green finance,” he stated, emphasising the IFC’s focus on scaling sustainability-linked investments that can unlock long-term private capital for inclusive growth.

The event also saw active participation from government representatives, with the Federal Ministry of Environment announcing Nigeria’s largest green bond to date—a ₦50bn sovereign issue—to finance renewable energy, sustainable transport, afforestation, and climate-smart agriculture.

“This landmark green bond reflects Nigeria’s deepening commitment to sustainable finance and leveraging private capital to deliver on national development priorities,” said Olaitan Fajuyitan, Special Adviser and Coordinator of the Sovereign Green Bonds Programme.

In the marine economy space, the Federal Ministry of Marine and Blue Economy highlighted the importance of developing a comprehensive blue bond framework. Represented by Director Husaini Shettima, the ministry said the workshop provided timely input into Nigeria’s push for sustainable financing aligned with global ocean economy standards.

The workshop also served as a practical guide for market participants. Abimbola Babalola, Head of Trading and Products at NGX, explained that listing labelled bonds through NGX enhances investor confidence, provides access to diversified capital pools, and promotes market transparency.

“Sustainable bond listings on NGX not only enhance visibility but also improve governance and accountability for issuers,” Babalola said.

As Nigeria accelerates its transition towards a climate-resilient, inclusive economy, experts at the event agreed that expanding the sustainable bond market is crucial to unlocking long-term financing. The NGX-IFC collaboration is seen as a strategic milestone in aligning Nigeria’s capital markets with global ESG (Environmental, Social, and Governance) standards and driving investments that support real-sector development.

NGX, IFC To Drive Sustainable Bond Issuance In Nigeria is first published on The Whistler Newspaper