The Securities and Exchange Commission (SEC) has disclosed ongoing plans to come up with rules that will guide all issuance of green bonds in Nigeria. This move is aimed at making the market a lot more attractive to investors.
The Acting Director-General of SEC, Mary Uduk, made this known while speaking during the “Nigerian Green Bond Market Development Programme Launch”, a week-long event that was organised by FMDQ OTC Securities Exchange in Lagos.
According to Uduk, the rules would be released to the market soon.
“We are in the process of approving the rules and any moment from now they will be released to the market. We are getting inputs rules from stakeholders and participants in the market. You cannot do anything without structures in place. SEC is trying to put up necessary structures that will guide the market when the time comes.”
The SEC DG, who spoke at the event on Friday as televised on Channels TV, expressed optimism that Nigeria’s capital market will be deepened by green bonds because the new product will provide immense opportunities.
She stated that the Federal Government had given a benchmark green bonds issuance; riding on the backdrops of the successful issuance of Sukuk bonds in 2017 by the Osun State Government.
She further noted that her organisation is working with Climate Bonds Initiative towards actualising climate change solutions that will strengthen internal capacity. Note that Climate Bonds Initiative has about $100 trillion bond market.
Also speaking at the event is Mr Bola Onadele Koko, the MD/CEO of FMDQ OTC Exchange securities. He said his company will partner with Financial Sector Deepening (FSD) Africa and CBI by executing a Cooperation Agreement that will ultimately support the development of the Nigerian green bond market.
Koko is also hopeful that the partnership with Financial Sector Deepening will encourage the development of Nigeria’s green bond market.