CBN to Review Nigerian Sustainable Banking Principles

By Aduragbemi Omiyale

Steps are already being taken by the Central Bank of Nigeria (CBN) to review the Nigerian Sustainable Banking Principles to incorporate climate risk reporting for the banking sector.

Ms Aisha Mahmood, the Special Adviser to the Governor of the CBN, Mr Godwin Emefiele, on Sustainable Banking, revealed this information.

She disclosed this while delivering her presentation at the Investor Engagement session organised by the Nigerian Exchange (NGX) Limited and the Global Reporting Initiative (GRI) themed Empowering Responsible Investing – ESG Disclosure in Lagos last Wednesday.

At the event, she spoke on the CBN’s efforts to enable sustainable banking in the country via regulatory enforcement of ESG disclosures for banks.

On his part, the Divisional Head of Capital Markets at NGX, Mr Jude Chiemeka, posited that sustainable finance could be a transformative tool to shape the Nigerian economy for the better.

He noted that the exchange recognises the power and potential of responsible investing, adding that it firmly believes that sustainable finance is not merely a buzzword but a transformative force that can shape our economy and society for the better.

Mr Chiemeka further added that the NGX has wholeheartedly embraced this vision and has taken concrete steps to contribute to the advancement of responsible investment practices.

“Through their work, they have paved the way for greater accountability and responsible business practices. We laud their dedication and unwavering commitment to building a more sustainable future,” he stated.

For his part, the Director of GRI Africa, Mr Douglas Kativu, represented by the Manager for GRI Africa, Ms Tendai Matika, stressed why ESG information mattered to investors, advising companies to prepare their disclosures in line with the GRI standards.

“As a general rule, investors want to understand what the major ESG risks and opportunities facing a business are, including how the firm measures and monitors these factors, among others,” Mr Kativu said.

On her part, the Divisional Head of Business Support Services Division and General Counsel of NGX, Mrs Irene Robinson-Ayanwale, reiterated NGX’s commitment to fostering responsible investing and sustainable finance by driving conversations, creating innovative products, and developing strategic partnerships which can contribute to building a more sustainable and resilient economy.

She said, “In line with our commitment, NGX is currently working on an ESG Program rollout that will further help companies manage material ESG risks and leverage the opportunities created.

“Additionally, we are developing the NGX Carbon Plus initiative, which will recognize companies that demonstrate their commitment to reducing their carbon emissions with practical and impactful projects.

“Through this initiative, we aim to galvanize sustainable action and contribute to mitigating the challenges posed by climate change.”

Business Post reports that GRI partnered with the bourse on the engagement session to further educate the investor community on incorporating ESG data into decision-making.