Lagos has joined the rapidly growing Financial Centres for Sustainability (FC4S) network.
FC4S is a UN Environment Programme-supported network that unites financial centres looking to share practices and encourage capital to flow into sustainable activities.
The Nigerian capital’s stock exchanges have over 860 securities totalling more than $360 billion.
“Huge flows of private capital are needed to deliver the green and sustainable finance needed to implement the Paris Agreement and sustainable development goals,” said Pierre Ducret, co-chair of FC4S. “Lagos’ inclusion in the FC4S network is a major boost to these efforts.”
The announcement comes after FC4S launched an Africa platform in March.
Lagos is the third African city to join, after Casablanca and Nairobi, and is the first in West Africa.
“Lagos joining the FC4S opens up new possibilities for Nigeria and countries in West Africa to leverage sustainable finance for social and climate impact,” said Satya Tripathi, Secretary of the UN Environment Management Group.
Since its September 2017 creation in Casablanca, FC4S has grown globally to include 24 financial hubs in Asia, Africa, the US and Europe. Other members include Dublin, Hong Kong, New York and London.
The UN Environment Programme helped Nigeria structure and launch a sovereign green bond in 2018. This was the third such sovereign bond ever launched and the first of its kind in a developing country.
Since then, the programme has helped the country develop a Sustainable Finance Roadmap for Nigeria.
“The adverse effects of climate change globally cannot be overemphasized,” said Babajide Sanwo-Olu, executive governor of Lagos State. “I am confident that the establishment of the Lagos Financial Centre for Sustainability will contribute significantly to Lagos State’s push to attract sustainable private capital.”
