The Association of Corporate Trustees have identified the need to strengthen capacity towards unlocking Nigeria’s potential in sustainable finance and green economy.
According to them, while the sector is still evolving with new potentials, its role is key in creating the needed confidence that investors look towards, to effectively participate in the green economy.
Data shows that a total of N36 billion, equal to $95 million worth of Climate Bonds has been issued in Nigeria, with about 56 percent allocated to solar energy projects, according to experts from Agusto Consulting.
Omolola Iyinolakan, president, Association of Corporate Trustees said with globalisation and environmental changes, we believe that the issue of sustainability is an all-important one and sustainable finance is an issue on the front burner that should be taken with all the seriousness it deserves.
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Iyinolakan, who is also the managing director, Apel Capital and Trust Limited made the remark at the 2024 Business Luncheon of the Association held in Lagos with theme ‘Sustainable Finance: The Role of Corporate Trustees’.
She said, “We are entrusted with safeguarding the interests of investors, even as they explore investments in diverse instruments to optimize returns. For eco-friendly investments, investors may lack awareness of the required investment criteria, so the Corporate Trustee assumes a critical role in ensuring comprehensive compliance.”
She stated further that sustainable finance is a very vast area of interest and Nigeria has barely scratched the surface.
“Opportunities abound not just for capital market operators but also for investors as well.”
Oritsejimi Ogbobine of Agusto Consulting during a presentation at luncheon said sustainable finance is key to unlocking Nigeria’s potential for inclusive growth, environmental stewardship and a prosperous future.
“Corporate trustees are not just facilitators; they are architects of this sustainable future, urging players to embrace this pivotal role as guardians of trust and champions of sustainability.”
“In Nigeria, Trustees also have the unique opportunity to catalyse the sustainable finance revolution, ensuring that investments drive positive change and deliver lasting value.”
According to him, Trustees need to create a dedicated ESG team or appoint ESG champions within their organisation to drive the sustainable finance agenda and stay abreast of global best practices.
According to him, this will strengthen through collaboration with issuers to co-create innovative sustainable finance products and solutions tailored to Nigeria’s unique social & environmental challenges.
Patience Oniha, director-general of the Debt Management Office emphasised the need for Corporate Trustees in the country to build capacity in the area of Sustainable Finance.
She emphasized the pivotal role Corporate Trustees play in safeguarding investors’ interests, particularly as substantial investments, not only from the government but also from the private sector.
She reiterated the importance of Corporate Trustees being well-equipped to deliver the required services to ensure investor confidence since they are the watchdogs of the Nigerian Capital Market.
