Onyema: Efforts to deepen sustainability product offerings underway

The Nigerian Exchange Group has reported a 10.3% year-on-year increase in gross earnings, reaching 7.5 billion naira in 2022. The primary subsidiary of the group, NGX, has shown improvements in trading performance, attributed to listings of companies such as BUA Foods and Geregu Power. In an exclusive interview with CNBC Africa, Oscar Onyeama, the Group CEO of the Nigerian Exchange, discussed the ongoing efforts to promote sustainability within the market through product offerings like green bonds and other environmentally and socially conscious debt instruments. Onyeama highlighted the importance of moving towards a more balanced capital structure, reducing debt, and increasing returns to equity providers in order to enhance financial sustainability and performance. During the interview, Onyeama also shed light on the performance of the group's subsidiaries and its strategic focus. He mentioned that NGX, which offers equities, fixed income, and exchange-traded funds among other products, witnessed significant growth in both the equities and fixed income segments. The listing of companies like BOA and Geregu Power contributed to the market capitalization increase in these sectors. Additionally, Onyeama discussed the progress of other subsidiaries and investee companies, mentioning successful exits from fintech companies that were part of an innovation initiative. The group is currently streamlining its entities by shutting down legacy subsidiaries like Coral Properties and NSC Nominees to align with its growth strategy across the African capital market value chain. On the topic of sustainability, Onyeama emphasized the importance of incorporating sustainable practices into the group's governance approach. The Nigerian Exchange Group aims to lead by example in promoting diversity, supporting the environment, and making a positive impact on the communities where it operates. The group's sustainability programs focus on initiatives in the marketplace, workplace, environment, and community. Onyeama highlighted the launch of green bonds and ongoing efforts to develop other ESG-compliant debt instruments to drive sustainability in the marketplace. He also underscored the group's commitment to engaging with local communities, providing a conducive workplace environment, and reducing its carbon footprint to support Nigeria's environmental goals. In conclusion, the Nigerian Exchange Group's recent financial performance reflects positive growth, driven by improvements in trading performance and strategic listings. The group's focus on sustainability initiatives, including the introduction of green bonds and other ESG debt instruments, demonstrates its commitment to responsible business practices and making a meaningful impact on society and the environment.