Nigeria and South Africa are taking a significant step toward strengthening carbon markets in Africa. The Nigerian Securities and Exchange Commission (SEC), Nigerian Exchange Group (NGX), and Johannesburg Stock Exchange (JSE) have joined forces to promote the growth, governance, and sustainability of carbon markets on the continent.
Okomu Forest Reserve in Edo State, Nigeria. AI generated picture.
A high-level delegation, led by NGX Chairman Alhaji Umaru Kwairanga and SEC Director General Dr Emomotimi Agama, recently visited the Johannesburg Stock Exchange. The objective was to learn from the JSE’s governance structure and to foster closer institutional ties. This collaboration is part of NGX’s broader strategy to align with global standards and partnerships, aiming to enhance capital markets not only in Nigeria but across Africa.
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JSE CEO Dr Leila Fourie noted the positive developments in South Africa’s financial markets, including lower capital outflows and increased investor confidence. She also emphasised the growing relevance of African capital markets on the global stage.
Kwairanga expressed optimism that learning from JSE’s governance, as a demutualised exchange, would shape NGX’s future decisions. Dr Agama stressed that this cooperation could lead to substantial progress in the Nigerian capital market.
The talks highlighted the potential for partnerships in carbon markets, private markets, data sharing, and dual listings. Both exchanges are committed to governance and risk management strategies to advance Africa’s position in global carbon markets.
As global investors increasingly turn their attention away from China, the collaboration between NGX and JSE could open doors to new investment opportunities in Africa.
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