In a significant move to channel global climate finance into Nigeria, the Nigerian Exchange Group (NGX Group) has joined forces with Germany's development finance institution, DEG, and the Africa Foresight Group. Their collaborative effort aims to unlock an estimated $2.5 to $3.0 billion in climate-linked capital for the country's leading corporations.
CEO Roundtable Drives Climate Action Agenda
The strategic partnership was launched through a high-level CEO Roundtable convened recently. The event brought together top corporate executives, development finance institutions, and key capital market stakeholders. The primary objective was to accelerate corporate climate commitments and position Nigerian companies to access the vast pool of global sustainability-focused funds.
This forum serves as a critical platform to advance the NGX Net-Zero Programme (N-Zero), a market-led initiative designed to enhance the long-term investability and competitiveness of companies listed on the exchange. By embedding climate resilience, these firms can attract more patient, long-term capital.
Leadership Highlights Investment Imperative
In his opening address, the Group Chairman of NGX Group, Dr. Umaru Kwairanga, set a bold vision. He asserted that African capital markets must take a front-row seat in directing the continent's response to the climate challenge. This involves creating the frameworks and incentives for businesses to transition to sustainable models.
Echoing this sentiment, the Group Managing Director and CEO of NGX Group, Temi Popoola, presented a compelling investment rationale. He stated unequivocally that climate risk has evolved from a peripheral concern to a material factor in company valuation and capital allocation. "Global capital is increasingly becoming conditional," Popoola explained. "Climate risk directly impacts the cost of capital and valuation. Companies that integrate sustainability into their core strategy and governance are better positioned to attract long-term capital."
Partnerships for Impact and Commercial Viability
Representing the international partner, Ms. Monika Beck, a Member of the Management Board at DEG, outlined their strategic alignment. "At DEG, our corporate strategy is centred on mobilising private capital to accelerate climate action while delivering measurable development impact and sustainable returns," she said. She emphasized that partnerships like the one with NGX Group are essential for scaling solutions that are both impactful and commercially viable.
The corporate perspective was provided by Dr. Owen Omogiafo, President and Group CEO of Transcorp Plc. She stressed the importance of moving from commitment to action, highlighting the need for practical, implementable solutions that companies can adopt to meet their climate goals and satisfy investor expectations.
The collaboration marks a pivotal step in aligning Nigeria's corporate sector with global sustainability trends. By facilitating access to climate capital, the initiative not only addresses environmental concerns but also strengthens the financial resilience and global competitiveness of Nigerian businesses.
