The Securities and Exchange Commission (SEC) has stated that there is enough room for more issuance of green bonds.
This was disclosed by Mr Lamido Yuguda, Director-General of the Securities and Exchange Commission at the FMDQ Green Exchange’s official inauguration event on Tuesday.
He stated that the commission would continue to advocate for the promotion of infrastructure development through long-term funding, which is in line with the green bond objective.
What the SEC is saying
According to him, SEC believes that the huge budget deficit and the infrastructure gap in the country can be financed by harnessing resources available from sustainable finance investors and interest groups around the world.
He said, “Without doubt, there are tremendous opportunities in the areas of power generation and transmission, rail transportation, housing, agriculture and water among others, where sustainable financing can be an avenue for the private sector to partner with government in the overall drive for prosperity and economic development.
“The commission had in December 2018 released the rules on green bonds to support the issuance of debt instruments with a positive impact on the environment.
“Although the Nigerian capital market has recorded some green bond issuances, there is ample room for additional issuances as stakeholders within the sector can do more in terms of green and sustainable finance, especially considering the available global investment opportunities and our domestic development needs.”
In case you missed it
The Debt Management Office (DMO) has stated that the Federal Government will become a more active issuer in the FMDQ Green Exchange, which is aimed at encouraging green financing and a sustainability drive in Nigeria.
