Nigeria’s business leaders consider green bond development programme as FMDQ, FSD, CBI launch 3-year initiative

By Oluwaseun Afolabi

A 3-year Nigerian green bond market development programme, developed by FMDQ, in partnership with the Financial Sector Deepening Africa (FSD) and Climate Bonds Initiative (CBI) has been launched to create awareness and drive education required to integrate the principles of green financing into the Nigerian debt capital markets.

Explaining the initiative behind the partnership, Bola Onadele, Koko, managing director/CEO of the FMDQ OTC said he believed “the pursuit to develop the green bond market in partnership with reputable financial institutions like FSD Africa and Climate Bonds Initiative, will help address infrastructure gaps and environmental challenges in a sustainable manner to deliver prosperity for Nigerians.”

Evans Osono, the director, Capital Markets Development, FSD Africa, also said that the partnership provided an opportunity to work closely in developing Nigeria’s debt capital market through the green bonds programme.

The programme officially launched in Lagos, Thursday, June 7 with the support of the Securities and Exchange Commission (SEC) and Access Bank Plc, has a clear focus on supporting the development of guidelines and listing requirements for Green Bonds in Nigeria.

Focusing on the theme “The Rise of Green Bonds-Global Trends and the Opportunity for Nigeria,” the launch was an opportunity for stakeholders and investors to explore how green finance can be deployed for impact investing in the economy.

Giving his remarks at the event, Ibrahim Usman Jibril, the minister of state, environment, lauded the FMDQ OTC for gathering key stakeholders to begin the conversations around green bonds as a creative way of providing sustainable financing.

Jubril said: “Our collective efforts have created a product everyone should be proud of and one which Nigeria should leverage to create value.”

In the same vein, Idiat Oluranti Adebule, the deputy governor of Lagos State, commended all stakeholders, for their commitment towards the launch of Nigeria Green Bond Market Development programme.

Representing Akinwunmi Ambode, governor of the state, Adebule assured the stakeholders that Lagos State will provide a friendly and an enabling environment for investors.

Tajudeen Yusuf, chairman of the House Committee on capital markets and other institutions, described the Nigerian Green Bond Market Development Programme by the FMDQ as an attestation to its drive for innovative market solutions, even at its nascent stage of evolution.

Speaking further he said the 8th National Assembly will continue to support the development of the capital market, which will translate to the growth of the Nigerian economy.

Justine Leigh-Bell, the director of Climate Bonds Initiative, speaking on “The Rise of Green Bonds”, gave insight into how green finance is transforming the global financial market, while she identified the challenge every country faces on climate change.

“We are very excited about this significant milestone. Working with FMDQ and FSD Africa will provide a platform to open up the Nigerian economy to a wider investor universe as we commence our journey to the local capital markets by entrenching financial instruments such as Green Bonds,” she said.