Economy
Crowding Private Sector Into Africa’s Climate Action

By Financial Nigeria
The global community for climate action was spooked by the November 8 election of Donald Trump as the next President of the United States.
The US President-elect had earned the sobriquet of “climate denier,” for his claim that climate change is a hoax.
However, there is cautious optimism that his presidency will not overturn the global agenda on climate change.
Hopefully, his views on climate change will change and align with reality when he settles into the Oval Office. Policymakers also believe that global climate agreements cannot be reversed easily.
In the meantime, stakeholders are pressing on with formulating strategies for climate change mitigation and adaptation.
The 22nd session of the Conference of the Parties (COP 22) to the United Nations’ agency on climate change held on November 7 – 18 in Marrakech, Morocco.
At the climate talks, Australia, Japan, United Kingdom, Pakistan and seven other countries ratified the December 2015 Paris Climate Agreement. A total of 111 countries, including the United States, China and Member Countries of the European Union ratified the agreement by the time COP 22 concluded.
Since the Paris accord entered into force on November 4th, quite earlier than anticipated, global action against climate change has effectively shifted to strategic programming. Therefore, in Marrakech, Canada, Germany, Mexico and the United States published their plans to significantly decarbonize their economies by 2050. A group of 47 developing nations also committed to running entirely on renewable energy sources “as rapidly as possible.”
Some of the plans are already gaining traction. Investments in renewable energy totalled $286 billion in 2015. This surpassed by 3% the previous high of renewable energy investment achieved in 2011. Data gleaned from Global Trends in Renewable Energy Investment 2016, a joint publication by United Nations Environment Programme and Bloomberg, further revealed that last year, coal and gas-fired electricity generation drew less than half the record investment made in solar, wind and other renewable energy sources.
The trend in renewable energy investment is a mixed bag, even in developing countries. China alone accounted for 55% of total investment last year; Africa’s share was less than 5%. As climate change mitigation is being driven by investment in green energy, Africa is already taking the familiar position at the back seat on the ‘green energy train’.
This was not unanticipated by climate policymakers. Although China is the clear leader in investment in renewables, other developing countries, in particular the low-income countries, are not expected to be able to keep pace without international assistance. But the advanced countries appear to be reneging on their pledges to help finance both mitigation and adaptation frameworks in the developing world, including Africa. This generated some rumblings in Marrakech, with regard to the commitment by the developed countries to raise $100 billion annually by 2020 to support climate actions in developing countries.
Disappointing as this is, the prospects of improvement in international assistance at the required scale are not assuring. One, virtually all the advanced countries have been bedevilled by over half a decade of weak economic growth. This has put investment in infrastructure below ideal levels, suggesting near-term pressure on the fiscal regimes to close the infrastructure gap, create domestic jobs, and boost economic growth.
Two, the economic malaise is also driving populist nationalistic sentiments in Europe and the United States. The backlashes for the emerging isolationist regimes are expected to include decline in international trade, further political uncertainties, shrinking and closed borders, and volatility in financial markets – acting together to further put downward pressure on economic growth and constrict foreign aid.
Three, the developing world has ceased to be monolithic. A handful of the countries have recently made significant economic and financial advances. These countries, including the BRICS economies, and the countries of the Gulf States that have amassed huge reserve savings, are expected to underline their climate strategies by investment. The less fortunate countries will continue to rely on overseas development assistance, although the gap between pledges and delivery will continue to widen. Without a united front, commitment to pledges for climate change mitigation and adaptation will continue to slack, with consequences for vulnerable populations.
Africa that is left behind in the transition to the green economy will be worse off than it is today. As the drive towards decarbonisation gathers pace, Africa’s oil economies will face more intense fiscal challenges.
Given the strong link between government balance sheets and private sector balance sheets, this will result in serious constraint for business growth and profit. Therefore, it is in the enlightened self-interest of African private sector to begin to mobilise investment capital for Africa’s climate action.
For starters, the private sector is best suited to take the lead role in innovating climate solutions and green development. In Africa, the frontiers for the innovations are in power and agriculture. These are sectors that have been far less developed, compared to services sectors.
Happily, countries including Nigeria have recently enacted reforms in both their power and agriculture sectors. These reforms are geared towards mobilising private sector resources, having relaxed statist control and incentivised investment.
Accordingly, the private sector can leverage reforms that have relaxed the centralisation of the power grid to innovate and finance off-grid electricity solutions. Opportunities for Public Private Partnerships are also opening up as subnational governments are seeking to accelerate improvement in the power sector. These are happening in the region that is well endowed with solar energy and wind resources.
Similarly, various reforms in the agriculture sector have factored the need for climate resilience in national food security policies. But there is significant knowledge gap in Africa’s agriculture which cannot be left to the smallholder farmers and governments to fill. Private investments across the agriculture value-chain are needed to help close the knowledge gap and support adaptation mechanisms in rural farming communities.
Token actions towards building the green economy cannot remain an option for Africa’s private sector. The risks are dangerously stacked. Without adequate climate action, African farmers could lose between 40 percent and 80 percent of their croplands for growing grains. Also, the effects of biodiversity loss and ecosystem degradation are dire for even urban populations.
But the question remains: how will private sector resources be mobilised? No doubt, significant capacity lies with the African financial institutions, including the development finance banks and to a lesser extent the export credit agencies. But there has been risk aversion and shortage of risk-sharing market instruments. In the Nigerian banking industry, for example, aversion towards risk in agribusiness has hampered funding by financial institutions. And funding pooled at the instance of Central Bank of Nigeria for on-lending to agro-SMEs has historically under-performed. A further drag is the macroeconomic conditions, which are driving interest rates more and more beyond the affordability of agro-entrepreneurs and smallholder farmers.
To unlock private sector funding, therefore, the blockades at both demand and supply sides of the credit market have to be addressed by smarter policies and more faithfulness with implementation. But this will not be enough. There has to be a framework for sharing expertise on the continent. The good news is that such frameworks that pool resources, help to mitigate risk, and share knowledge in mobilising climate actions already exist. At the supra-national level, the African Risk Capacity (ARC) was founded in 2012 as an agency of the African Union with the mandate to finance climate resilience and crisis response.
In line with its mandate, the ARC is planning to roll out an Extreme Climate Facility, which will issue multi-peril, climate change catastrophe bonds. The securitization instruments will bring scale and knowhow to Africa’s climate risk management and climate change adaptation efforts, with tremendous benefits to the agriculture sector. XCF’s catastrophe bonds are expected to attract not only investment from indigenous African banks but also from international financial institutions. One hopes that the XCF will soon be deployed, and the rigorous risk modelling it plans to have in place will serve other market initiatives.
Necessary as it is for Africa to take responsibility for its resilience to climate change and to develop its adaptation mechanisms, the continent should not be denied ‘climate justice.’ The heavily-industrialised countries account for overwhelming proportions of the emissions that are heating the planet and are intensifying climate risks for vulnerable populations in less-industrialised developing countries. This makes the delivery of aid towards adaptation in developing countries quite mandatory. Foreign aid is also required to catalyse market frameworks in developing countries, and secure part of the moral planks on which the much-celebrated Paris accord rest.
Economy
Nigeria Not Among 10 Most Cryptocurrency-Obsessed Countries

By Dipo Olowookere
A new report by Atmos has revealed that Nigeria is not among the 10 most cryptocurrency-obsessed countries in the world despite a growing interest in digital assets among citizens.
In the report made available to Business Post, it was disclosed that the United Arab Emirates (UAE) is the most crypto-obsessed country in 2025, with over a quarter of its population owning at least a digital coin.
It was discovered that the country has exceptional adoption growth at 210 per cent and moderate searches despite having minimal Bitcoin ATM infrastructure.
Following is Singapore with a score of 97.5, with nearly a quarter of its population having cryptocurrency, and has seen a 150 per cent increase in adoption. With 160,000 monthly crypto searches, Singapore maintains its reputation as one of the most engaged markets in the space despite lacking any Bitcoin ATMs.
The United States was third with an ownership rate of 15.5 per cent, though leading in Bitcoin ATMs, housing nearly 30,000 nationwide. It also records the highest number of crypto searches, surpassing 4.2 million monthly, indicating a continued mainstream interest in digital assets.
The fourth place was Canada though it has an adoption growth rate at 225 per cent, with 10.1 per cent of its population now holding cryptocurrency. It hosts the second-largest Bitcoin ATM network globally with 3,561 machines, dramatically fewer than the US but thousands more than any previous country.
Turkey secured the fifth spot with crypto ownership of 19.3 per cent, and a monthly search rate of 802,000. While adoption growth of 135 per cent is slightly lower than other top-ranked countries, Turkey’s increasing reliance on digital assets amid economic uncertainty highlights its strong position in the crypto market.
The sixth was Germany and adoption growth rate at 225 per cent, with over one million crypto-related searches per month, Switzerland ranked seventh, Australia occupied eighth place, Argentina ranked ninth and South Korea occupied the 10th place.
“Cryptocurrency adoption is not just about investment trends. It is reshaping financial systems worldwide. In some regions, it is a hedge against inflation and currency instability, while in others, it is a step toward a more digitized economy.
“What truly drives adoption is not just interest but accessibility. When regulatory clarity, payment integration, and real-world utility align, crypto moves from speculation to a fundamental part of everyday transactions.
“As global financial landscapes shift, the countries embracing this evolution will be the ones setting the standard for the future of digital finance,” the chief executive of Atmos, Mr Nick Cooke, said.
Economy
Sage Grey Backs Impact-Driven Financial, Technological Solutions

By Modupe Gbadeyanka
A leading technology firm, Sage Grey Technologies, has reaffirmed its commitment to driving financial inclusion, SME growth and technological innovation through strategic partnerships and product development.
The firm, alongside its sister company, Sage Grey Finance, said it is making efforts to expand financial access for SMEs, drive technological advancements, and contribute to sustainable economic development through solutions.
“We are committed to building technology solutions that not only enhance business operations but also create social impact.
“Our goal is to bridge efficiency gaps in Nigeria’s digital ecosystem while ensuring that businesses and individuals benefit from technology-driven opportunities,” the Chief Operating Officer of Sage Grey Technologies, Mr Yemi Jinadu, stated.
Also, the Executive Director of Sage Grey Finance, Mr Jumo Atiba, said, “At Sage Grey Finance, we believe in the transformative power of impact financing.
“Our unique position in Nigeria’s financial ecosystem allows us to unlock opportunities that generate both financial returns and meaningful social impact.
“As a licensed and regulated entity by the Central Bank of Nigeria, we seamlessly blend profitability with social impact. Our integration into the Nigeria Inter-Bank Settlement System ensures we deliver secure, efficient financial services, setting us apart.
“Our journey is rooted in empowering businesses, fostering sustainable development, and creating enduring value for our stakeholders and communities.”
Sage Grey Technologies’ product innovations include Splitmulti, a digital marketplace that allows businesses and consumers to make bulk purchases at wholesale prices, providing cost-effective solutions for retailers and end users; Proxze, a platform that connects businesses with verified service providers, including business professionals, simplifying compliance and financial management; Adzplug, a street-level advertising solution that allows shop owners to earn passive income while giving brands direct access to local markets; and Nkiru, a customer support solution that provides corporates and SMEs with digital reception services, helping them establish a professional presence without physical office costs.
On its part, Sage Grey Finance offers a tailored SME funding scheme that enables small businesses to access financing at a highly competitive 9 per cent interest rate.
It also support small business owners through partnership with the National Association of Small and Medium Enterprises (NASME) to facilitate direct engagement with entrepreneurs, ensuring that financing solutions reach those who need them most, and improve access to capital to underserved groups such as women and youth by providing dedicated financial products designed to foster economic empowerment.
Economy
Tinubu Signs Investments and Securities Act 2025 into Law

By Aduragbemi Omiyale
President Bola Tinubu has signed the Investments and Securities Act (ISA) 2025 into law, repealing the Investments and Securities Act No. 29 of 2007
The enactment of the ISA 2025 reaffirms the authority of the Securities and Exchange Commission (SEC) as the apex regulatory authority of the Nigerian capital market. The new Act also introduces transformative provisions to further align Nigeria’s market operations with international best practices.
It strengthens the legal framework of the Nigerian capital market, enhances investor protection, and introduces critical reforms to promote market integrity, transparency, and sustainable growth.
The Director-General of the SEC, Mr Emomotimi Agama, lauded the President’s assent as a transformative step for the capital market.
“The ISA 2025 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently and reposition Nigeria as a competitive destination for local and foreign investments.
“We commend all stakeholders within and outside the capital market community for their unwavering solidarity towards the achievement of this historic milestone and solicit their continued collaboration in respect of the effective implementation of the ISA 2025 for the benefit of our economy,” he stated.
Business Post reports that the Act enhances the regulatory powers of the SEC in a manner comparable with benchmark global securities regulators. These enhanced powers and functions ensure full conformity with the requirements of IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), enabling the SEC retain its Signatory A status and enhancing the overall attractiveness of the Nigerian capital market.
Other notable provisions of the ISA 2025 include:
Classification of Exchanges and inclusion of provisions on Financial Market Infrastructures– The Act classifies Securities Exchanges into Composite and Non-composite Exchanges. A Composite Exchange is one in which all categories of securities and products can be listed and traded, while a Non-composite Exchange focuses on a singular type of security or product. There are also new provisions on Financial Market Infrastructures such as Central Counter Parties, Clearing Houses and Trade Depositories.
Expansion of the definition and Understanding of Securities – The Act explicitly recognises virtual/digital assets and investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.
Comprehensive Insolvency Provisions for Financial Market Infrastructures – The Act introduces provisions that exempt transactions facilitated through or otherwise involving Financial Market Infrastructures from the application of general insolvency laws.
Management of Systemic Risk – The Act introduces provisions for the monitoring, management and mitigation of systemic risk in the Nigerian capital market.
Expansion of the Category of Issuers to the Public– The Act expands the categories of issuers, as a key step towards the introduction of a wide range of innovative products and offerings as well as the facilitation of “commercial and investment business activities”, subject to the approval of the Commission and other controls stipulated in the Act.
Legal Framework for Commodities Exchanges – The Act contains a new Part which provides for the regulation of Commodities Exchanges and Warehouse Receipts. These provisions are essential to allow for the development of the entire gamut of the Commodities ecosystem.
Issuance of Securities by Sub-Nationals and their Agencies– Salient provisions of the Act address existing restrictions in respect of raising of funds from the capital market by Sub-Nationals to allow for greater flexibility in this regard.
Transparency in Securities Transactions – The Act introduces the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions. This stipulation is designed to improve transparency in the conduct of securities transactions.
Enforcement Against Illegal Investment Schemes – The Act expressly prohibits Ponzi Schemes and other unlawful investment schemes while prescribing stringent jail terms and other sanctions for the promoters of such schemes.
Strengthening the Investments and Securities Tribunal– The Act amends some key provisions in the repealed ISA 2007 pertaining to the Composition of the Tribunal, constitution of the Tribunal, qualification and appointment of the Chief Registrar as well as the jurisdiction of the Tribunal to enhance the ability of the Tribunal to optimally discharge its mandate.
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