The Securities and Exchange Commission (SEC) of Nigeria has emphasized the urgent need to mobilize capital markets across Africa to address the massive shortfall in climate adaptation funding on the continent. Speaking at the recent African Development Bank (AfDB) meeting, SEC Director-General Dr. Emomotimi Agama called on project developers and private sector actors to present viable, investment-ready projects that meet strong environmental and social standards.
Agama highlighted that African capital markets must pursue deeper integration, harmonize sustainability standards, and adopt frameworks such as those of the International Sustainability Standards Board (ISSB) to unlock institutional capital. According to him, bridging the climate finance gap is not optional but a developmental necessity.
Despite contributing less than 4% of global greenhouse gas emissions, Africa suffers over 25% of climate-related losses. Agama cited data from the AfDB and the United Nations Environment Programme indicating that Africa may need up to $100 billion annually by 2030 for climate adaptation, with total climate finance requirements projected to exceed $3 trillion.
He pointed to the increasing risks from droughts, rising sea levels, and storms across the continent and stressed the importance of translating statistics into action. In Nigeria, for example, the SEC’s launch of a sovereign green bond in 2017—oversubscribed by 2.5 times—demonstrated the potential of local capital when the right instruments and frameworks are in place.
Agama noted that Nigeria is playing a leading role in sustainability reporting through its involvement in the ISSB’s Adoption Readiness Working Group. Nigeria’s roadmap includes voluntary adoption of new IFRS Sustainability Disclosure Standards through 2026, with mandatory compliance beginning in 2027.
He identified key barriers to adaptation finance, including misperceptions, data limitations, and risk aversion. To overcome these, he urged greater regional cooperation, standardized ESG frameworks, and the use of risk-mitigation tools like credit enhancements.
Agama concluded by calling on regulators, investors, and development partners to work together in scaling African capital markets and financing climate resilience, emphasizing that the continent has both the need and the capacity to act.
