Nigerian Exchange Group (NGX) has launched its Net Zero Initiative, signalling a decisive shift toward embedding climate action and sustainability at the heart of Nigeria’s capital market as the country aligns with global efforts to transition to a low-carbon economy.

The Net Zero’ initiative is designed to support Nigerian corporates in meeting increasingly stringent climate and sustainability standards required by global investors, while unlocking access to long-term, climate-aligned capital.

The move comes days after President Bola Ahmed Tinubu signed Nigeria’s Carbon Market Initiative, underscoring the growing policy momentum around climate finance and emissions reduction.

Speaking at a closing gong ceremony to commemorate the launch on Thursday, NGX Chairman, Mr. Temi Popoola, described the Net Zero Initiative as the Exchange’s strategic response to both a global and local imperative.

According to him, institutions such as DEG, Germany’s development finance institution and a subsidiary of KfW, now apply strong environmental, social, and governance (ESG) and climate filters before deploying capital, making sustainability alignment a prerequisite for investment.

“For the Exchange, the key question is how we support Nigerian companies to align with this direction and how we attract climate-aligned capital. Our goal is to bridge the gap between opportunity and execution by building capacity across the ecosystem and helping corporates unlock funding,” Popoola said.

He noted that DEG’s impact on Nigeria’s capital market has been far-reaching, with several Nigerian banks, private equity firms, and pre-listing companies benefiting from DEG-backed financing.

He also paid tribute to DEG’s outgoing Country Director, Ben, whose seven-year tenure helped strengthen the private sector and capital market ecosystem.

NGX Chief Executive Officer, Mr. Jude, said the Exchange was deliberately choosing to “lead by action” on the Net Zero agenda, which has become a central pillar of global capital markets.

He explained that the programme goes beyond listed companies to include structured capacity building, with at least 30 market participants receiving training in climate and sustainability.

“This is a shift from availability to sustainability. Corporations must now operate not only for profitability, but also for impact. ESG is no longer optional, and NGX takes this responsibility seriously,” Jude said.

For DEG, the launch of the initiative at the Exchange reflects the strategic role of capital markets in driving private sector-led development. Ms. Monika Beka, DEG’s Chief Investment Officer, described the gathering as a “mini-Davos” for Nigeria and reaffirmed the institution’s focus on Africa, with Nigeria identified as a priority market.

“Profitability and sustainability are not contradictory. They reinforce each other. Working with leading corporates on climate and impact creates long-term value for shareholders,” he said.

Also speaking, Ben, DEG’s Country Director, expressed gratitude for his years in Nigeria, reiterating DEG’s belief in the power of the private sector to drive responsible growth and its commitment to continued support for Nigeria’s capital market.

With the Net Zero Initiative, NGX is positioning Nigeria’s capital market to play a central role in financing climate-aligned growth, strengthening investor confidence, and preparing the market for a future where sustainability and capital formation increasingly go hand in hand.

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