Economy
NGX Spearheads Green Finance Solutions for Nigeria’s Environmental Challenges
Nigeria, a nation endowed with vast natural resources, faces a looming ecological catastrophe that threatens its economic stability and the well-being of its citizens. The unrelenting march of deforestation and desertification is leaving an indelible scar on the country’s landscape, exacerbating climate change woes and jeopardizing the livelihoods of millions.
According to statistics from the United Nations Office for Outer Space Affairs (UNOOSA), Nigeria grapples with an annual deforestation rate of 3.7%, the highest globally. Between 2002 and 2023, the country lost over 178,000 hectares, amounting to a staggering 95% of tree cover in natural forest areas (Global Forest Watch). This unchecked deforestation, driven by agricultural expansion, logging, and urbanization, has far-reaching consequences, including biodiversity loss, soil erosion, and a significant contribution to global greenhouse gas emissions.
Moreover, the spectre of desertification looms large, with a staggering 62 million Nigerians directly exposed to its debilitating impacts, as reported by UNOOSA. Desertification, a process characterized by the degradation of fertile land, has led to reduced agricultural productivity, water scarcity, and exacerbated poverty levels, particularly in the northern regions of the country.
NGX: Championing Sustainable Finance Solutions
Amidst the grim realities of environmental degradation, a glimmer of hope emerges from Nigerian Exchange Limited (NGX), the nation’s premier securities exchange. NGX has taken bold strides in championing sustainable finance solutions, positioning itself as a catalyst for positive change.
In 2016, NGX launched the Green Bond Market Development Programme, a groundbreaking initiative aimed at fostering innovative financial instruments aligned with Nigeria’s climate mitigation and adaptation targets. This program laid the foundation for the issuance of Nigeria’s maiden sovereign green bond in 2017, valued at a significant N10.69 billion (approximately $26 million at the time).
The landmark green bond issuance was a collaborative effort between NGX, the Debt Management Office (DMO), and the Federal Ministry of Environment. The success of Nigeria’s inaugural sovereign green bond paved the way for subsequent issuances, with corporate trailblazers like Access Bank and North South Power Company leading the charge. These entities have issued corporate green bonds, collectively contributing over $136 million to the nation’s burgeoning green finance market, as reported by the Nigerian Investment Promotion Commission (NIPC).
Notably, several Nigerian states, including Gombe, are exploring the issuance of green bonds to finance developmental challenges and combat climate change issues like desertification and water scarcity. This decentralized approach underscores the growing recognition of sustainable finance as a powerful tool for achieving sustainable development goals at both national and sub-national levels.
Recognizing the need for global collaboration in tackling environmental challenges, NGX has forged strategic partnerships with international organizations, further amplifying its impact. One such partnership is with the Luxembourg Stock Exchange (LuxSE), a leading global platform for sustainable finance. This groundbreaking collaboration facilitates the cross-listing and trading of green bonds, enhancing their visibility and attractiveness to international investors. By creating a robust platform for green finance, this partnership enables Nigerian green bonds to gain global recognition and attract much-needed investment from environmentally conscious investors worldwide.
Capacity Building with IFC
Moreover, NGX’s collaboration with the International Finance Corporation (IFC) has been instrumental in developing and issuing green, social, and sustainability bonds in Nigeria. Through knowledge sharing, training domestic verifiers, and building capacity, NGX is ensuring the credibility and integrity of green finance instruments in the Nigerian market.
Temi Popoola, GMD/CEO of Nigerian Exchange Group Plc, emphasized the importance of these partnerships, stating, “The limited flow of climate finance remains a major issue for the implementation of mitigation and adaptation actions in Africa, particularly Nigeria. NGX’s collaboration with internationally recognized organizations like the IFC is targeted at sharing valuable green finance experiences and best practices, as well as promoting the development of sustainable finance market segments to support various stakeholders.”
Leveraging Green Finance and Carbon Markets
NGX’s efforts extend beyond the issuance of green bonds to leveraging the full potential of sustainable finance to address the pressing challenges of deforestation and desertification. One promising avenue is the development of a robust carbon market, which would incentivize the preservation of forests and the restoration of degraded lands. Through the carbon market, companies and organizations can purchase carbon credits, which represent the removal or avoidance of a certain amount of greenhouse gas emissions. These credits can be generated by projects that protect or restore forests, as well as initiatives that combat desertification through sustainable land management practices.
By creating a demand for carbon credits, the carbon market provides a financial incentive for entities to invest in projects that mitigate deforestation and desertification. This market-based approach not only generates revenue for conservation efforts but also encourages the private sector to actively participate in environmental stewardship. Currently, NGX is collaborating with other stakeholders and the Nigerian Climate Change Council on the framework for Nigeria’s carbon market.
Specialized Green Bonds for Environmental Conservation
Additionally, entities can explore the issuance of specialized green bonds specifically targeted at financing projects that address deforestation and desertification. These bonds could fund reforestation initiatives, agroforestry practices, and sustainable land management techniques, thereby directly tackling the root causes of these environmental challenges. NGX’s platform provides an avenue for issuers to adequately secure funding for these activities.
By leveraging the power of green finance and carbon markets, NGX is positioning itself at the forefront of Nigeria’s efforts to combat deforestation and desertification. As Jude Chiemeka, Ag. CEO of NGX, stated, “NGX recognizes the power and potential of sustainable finance. It is not merely a buzzword but a transformative force that has the potential to shape the economy and society for the better. The Exchange has wholeheartedly embraced this and is taking concrete steps to contribute to the advancement of sustainable finance in Nigeria.”
Through innovative financial instruments, international collaborations, and a commitment to environmental stewardship, NGX is paving the way for a sustainable future for Nigeria, where economic growth and environmental preservation coexist in harmony.
By Adedapo Adesanya
The domestic supply of Premium Motor Spirit (PMS), also known as petrol, from the Dangote Refinery increased by 64.4 percent in December 2025, contributing to an enhancement in Nigeria’s overall petrol availability.
This is according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in its December 2025 Factsheet Report released on Thursday.
The downstream regulatory agency revealed that the private refinery raised its domestic petrol supply from 19.47 million litres per day in November 2025 to an average of 32.012 million litres per day in December, as it quelled any probable fuel scarcity associated with the festive month.
The report attributed the improvement to more substantial capacity utilisation at the Lagos-based oil facility, which reached a peak of 71 per cent in December.
The increased output from Dangote Refinery contributed to a rise in Nigeria’s total daily domestic PMS supply to 74.2 million litres in December, up from 71.5 million litres per day recorded in November.
The authority also reported a sharp increase in petrol consumption, rising to 63.7 million litres per day in December 2025, up from 52.9 million litres per day in the previous month.
In contrast, the domestic supply of Automotive Gas Oil (AGO) known as diesel declined to 17.9 million litres per day in December from 20.4 million litres per day in November, even as daily diesel consumption increased to 16.4 million litres per day from 15.4 million litres per day.
Liquefied Petroleum Gas (LPG) supply recorded modest growth during the period, rising to 5.2 metric tonnes per day in December from 5.0 metric tonnes per day in November.
Despite the gains recorded by Dangote Refinery and modular refineries, the NMDPRA disclosed that Nigeria’s four state-owned refineries recorded zero production in December.
It said the Port Harcourt Refinery remained shut down, though evacuation of diesel produced before May 24, 2025, averaged 0.247 million litres per day. The Warri and Kaduna refineries also remained shut down throughout the period.
On modular refineries, the report said Waltersmith Refinery (Train 2 with 5,000 barrels per day) completed pre-commissioning in December, with hydrocarbon introduction expected in January 2026. The refinery recorded an average capacity utilisation of 63.24 per cent and an average AGO supply of 0.051 million litres per day
Edo Refinery posted an average capacity utilisation of 85.43 per cent with AGO supply of 0.052 million litres per day, while Aradel recorded 53.89 per cent utilisation and supplied an average of 0.289 million litres per day of AGO.
Total AGO supply from the three modular refineries averaged 0.392 million litres per day, with other products including naphtha, heavy hydrocarbon kerosene (HHK), fuel oil, and marine diesel oil (MDO).
The report listed Nigeria’s 2025 daily consumption benchmarks as 50 million litres per day for petrol, 14 million litres per day for diesel, 3 million litres per day for aviation fuel (ATK), and 3,900 metric tonnes per day for cooking gas.
Actual daily truck-out consumption in December stood at 63.7 million litres per day for petrol, 16.4 million litres per day for diesel, 2.7 million litres per day for ATK and 4,380 metric tonnes per day for cooking gas.
By Adedapo Adesanya
The Securities and Exchange Commission (SEC) has introduced a comprehensive revision of minimum capital requirements for nearly all capital market operators, marking the most significant overhaul since 2015.
The changes, outlined in a circular issued on January 16, 2026, obtained from its website on Friday, replace the previous regime. Operators have been given until June 30, 2027, to comply.
The SEC stated that the reforms aim to strengthen market resilience, enhance investor protection, discourage undercapitalised operators, and align capital adequacy with the evolving risk profile of market activities.
According to the circular, “The revised framework applies to brokers, dealers, fund managers, issuing houses, fintech firms, digital asset operators, and market infrastructure providers.”
Some of the key highlights of the new reforms include increment of minimum capital for brokers from N200 million to N600 million while for dealers, it was raised to N1 billion from N100 million.
For broker-dealers, they are to get N2 billion instead of the previous N300 million, reflecting multi-role exposure across trading, execution, and margin lending.
The agency said fund and portfolio managers with assets above N20 billion must hold N5 billion, while mid-tier managers must maintain N2 billion with private equity and venture capital firms to have N500 million and N200 million, respectively.
There was also dynamic rule as firms managing assets above N100 billion must hold at least 10 per cent of assets under management as capital.
“Digital asset firms, previously in a regulatory grey area, are now fully covered: digital exchanges and custodians must maintain N2 billion each, while tokenisation platforms and intermediaries face thresholds of N500 million to N1 billion. Robo-advisers must hold N100 million.
“Other segments are also affected: issuing houses offering full underwriting services must hold N7 billion, advisory-only firms N2 billion, registrars N2.5 billion, trustees N2 billion, underwriters N5 billion, and individual investment advisers N10 million. Market infrastructure providers carry some of the highest obligations, with composite exchanges and central counterparties required to maintain N10 billion each, and clearinghouses N5 billion,” the SEC added.
By Aduragbemi Omiyale
The founder and chief executive of Austin Laz and Company Plc, Mr Asimonye Austin Lazarus Azubuike, has sold off about 52.24 million shares of the organisation.
The stocks were offloaded in 11 tranches at an average price of N4.36 per unit, amounting to about N227.8 million.
The transactions occurred between December 2025 and January 2026, according to a notice filed by the company to the Nigerian Exchange (NGX) Limited on Friday.
Business Post reports that Austin Laz is known for producing ice block machines, aluminium roofing, thermoplastics coolers, PVC windows and doors, ice cream machines, and disposable plates.
The firm evolved from refrigeration sales to diverse manufacturing since its incorporation in 1982 in Benin City, Edo State, though facing recent operational halts.
According to the statement signed by company secretary, Ifeanyi Offor & Associates, Mr Azubuike first sold 1.5 million units of the equities at N2.42, and then offloaded 2.4 million units at N2.65, and 2.0 million units at N2.65.
In another tranche, he sold another 2.0 million units at a unit price of N2.91, and then 5.0 million units at N3.52, as well as about 4.5 million at N3.87 per share.
It was further disclosed that the owner of the company also sold 9.0 million shares at N4.25, and offloaded another 368,411 units at N4.66, then in another transaction sold about 6.9 million units at N4.67.
In the last two transactions he carried out, Mr Azubuike first traded 10.0 million units equities at N5.13, with the last being 8.5 million stocks sold at N5.64 per unit.
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