Sustainable Finance in Nigeria: A Case for its Development


Sustainable Finance in Nigeria: A Case for its Development

November 14, 2023

In a world beset by environmental, social, and economic challenges, it has become increasingly necessary for a realignment of common goals; one of these is the sustainability of the earth.

The financial sector holds enormous power in funding and bringing awareness to issues of sustainability, whether by allowing for research and development of alternative energy sources or supporting businesses geared towards sustainable development.

Sustainable finance represents a significant opportunity for financial institutions and government to reposition business models in line with customer expectations, evolving economic risks & challenges, and environmental, social and governance (ESG) standards driven by politics and society.

What we are trying to do here is to make a case for sustainable finance in Nigeria, taking into consideration our special needs as a people and as a country, exploring the opportunities the concept presents, and suggesting frameworks that will best suit our nation.


Government support and a conducive regulatory framework are critical for the success of sustainable finance in Nigeria.

As an effort to developing a framework to guide sustainable finance, the Financial Services Regulation Coordinating Committee (FSRCC) developed the Nigerian Sustainable Finance Principles (NSFP). The NSFP focuses on the role financial services stakeholders play in facilitating economic prosperity and ensuring environmental sustainability and social development.

These principles have been adopted by key regulators in the financial market including the Securities and Exchange Commission, Central Bank of Nigeria, and the Nigerian Exchange Group.

Nigeria's most prominent sustainable finance instruments have been green bonds and most recently, social bonds.


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