NSE looks to deepen sustainable finance market segments in West Africa

The Nigeria Stock Exchange, in collaboration with the Milken Institute, is gearing up to host the inaugural edition of the Webinar Series on Sustainable Capital Markets focused on promoting Green Finance in West Africa. Jude Chiemeka, the Head of the Trading Business Division at the Nigerian Stock Exchange, shed light on the importance of this initiative during a recent interview with CNBC Africa. The main theme of the Webinar Series revolves around the urgent need to address environmental challenges, specifically climate change, which has been a global concern even before the COVID-19 pandemic. With extreme weather conditions leading to natural disasters like floods and cyclones, active participation from both the public and private sectors is crucial in reversing these challenges. Consequently, the focus on sustainable finance comes as part of a commitment to building capacity and fostering the growth of sustainable finance across Africa. Chiemeka highlighted the growing appetite for green finance in Nigeria, citing successful bond listings that have shown a significant increase in investor interest. The sovereign benchmark has paved the way for corporates to follow suit, with domestic investors, including pension fund administrators and asset managers, also showing enthusiasm for sustainable investments. In driving the growth of the sustainable finance industry in Nigeria, the Nigerian Stock Exchange has been actively engaged in investor education and capacity building. By creating a conducive environment to attract qualified issuers and investors, the Exchange aims to ensure that stakeholders have a solid understanding of the process and reporting requirements involved in sustainable finance. Continuous engagement with key stakeholders and issuers play a pivotal role in enhancing knowledge and promoting sustainable investments. The upcoming webinar series targets a wide range of participants, including policymakers, government agencies, securities market regulators, exchanges, issuers, investors, and financial institutions. Chiemeka emphasized the importance of extending the conversation on sustainable capital markets beyond Nigeria to the entire West African region. With the goal of leveraging the expertise developed in the Nigerian market, the Exchange aims to facilitate the growth of sustainable capital markets across the region. Furthermore, the collaboration with the Luxembourg Stock Exchange through an MoU has been instrumental in promoting cross-listings and facilitating access to sustainable financial instruments. The feedback from investors following the signing of the MoU has been positive, with a significant interest in the listed instruments. The Exchange remains committed to building awareness domestically and forging partnerships with international firms like the Milken Institute to deepen domestic participation in sustainable finance. In conclusion, the collaborative efforts between the Nigerian Stock Exchange and the Milken Institute underscore a shared vision to deepen sustainable finance markets in West Africa. By fostering innovation and promoting green finance initiatives, the Exchange aims to address pressing environmental challenges while driving economic growth and financial inclusion across the region.