On Friday, October 4, 2019, Babajide Sanwo-Olu, governor of Lagos State, officially launched the Financial Centre for Sustainability, Lagos (FC4S, Lagos) at a prestigious event which held at FMDQ’s business complex, Exchange Place.
As a crucial step towards operationalising FC4S Lagos, a declaration was unveiled and signed by Governor Sanwo-Olu and Bola Onadele. Koko, chairman, FC4S Lagos, conveying the commitment of both parties, as well as other key stakeholders, to advance green and sustainable finance in the Nigerian financial markets, in line with the United Nations 2030 Agenda for Sustainable Development and the Paris Agreement.
This launch, which officially kicked off the activities of the FC4S Lagos in a well-attended ceremony, bringing together key financial market stakeholders, regulators, subject-matter experts and other sustainability doyens, also attracted key government officials. They include Jumoke Oduwole, special adviser to the president on Ease of Doing Business; Mary Uduk, Ag. director-general, Securities and Exchange Commission; Doyin Salami, vice-chairman, Governance Board, FC4S Lagos; Sam Egube, Commissioner for Budget and Planning, Lagos State; Rabiu Olowo Onaolapo, Commissioner for Finance, Lagos State; Solape Hammond, special adviser to lagos state governor on Sustainable Development Goals; Bolaji Balogun, CEO, Chapel Hill Denham, amongst others.
According to the 2018 Nigerian Sustainable Finance Roadmap Report (the “Report”) developed by United Nations Environment Programme (“UNEP”) Inquiry, in collaboration with market stakeholders, Nigeria continues to grapple with a myriad of economic, social and infrastructure challenges on the back of growing rural-urban migration, lack of pipe-borne water, growing housing deficit, deteriorating environmental conditions, heightening security challenges, increased social tension, and inaccessible health and education centres, signalling an annual estimated sustainable finance investment need of up to $92 billion green finance investment required between now and 2030.
The Report highlights the fact that annual sustainable finance flow into Nigeria is estimated at just over $8 billion mainly from public sources. The Report states further that to achieve the Nationally Defined Contributions (“NDCs”) of the Paris Agreement and meet the Sustainable Development Goals (“SDGs”) by 2030, the opportunity for sustainable finance-related private capital in Nigeria could be roughly 20 times of current flows (i.e., $160 billion).
Consequently, FMDQ Securities Exchange PLC (FMDQ Exchange or the Exchange), in line with its drive to promote sustainable finance in the Nigerian financial market, was challenged to rally other stakeholders in the financial market ecosystem to set up FC4S, Lagos. The aim is to accelerate the expansion of green/sustainable finance in Nigeria, showcasing Lagos as a key financial centre working towards the implementation of the Sustainable Development Goals (SDGs), and afford Lagos an opportunity to draw lessons and insights from more developed financial centres that will aid its adaptation to climate change as well as provide an opportunity to harness the vast investment needs for the transition to a low-carbon and climate resilient economy that supports sustainable growth.
To this end, FC4S Lagos was admitted in May 2019, as the 23rd member of the FC4S Network, joining New York, London, Geneva, Shanghai, amongst others, with a mission “To position Nigeria as a leading market in sustainability principles through investments, innovation, partnerships and capacity development”.
FC4S Lagos, structured as an Incorporated Trustee with the aspiration to be independently run and self-funded, with its secretariat based in Lagos, is led by a Governance Board constituting the chairman, Bola Onadele. Koko, and vice chairman, Doyin Salami. It also has four thematic area leads: Policy and Regulation led by Farouk Aminu; Issuances and Investments led by Kemi Awodein; Research, Education & Engagements led by Andrew S. Nevin, and Legal & Risk Management led by Chidi Mike-Eneh.
FMDQ Exchange currently serves as the secretariat of FC4S Lagos, coordinating the activities of the financial centre and liaising with the international network towards meeting the overarching objective of promoting green and sustainable finance in Nigeria.
Iheanyi Nwachukwu
