Green economy will drive diversification — SEC

Transitioning to a green economy has been identified as one of the avenues for diversifying Nigeria’s economic base, job creation, reducing dependence on fossil fuels, and enhancing resilience against global oil price volatility.

The Director-General of Securities and Exchange Commission (SEC), Dr Emomotimi Agama, stated this while speaking as the guest speaker at a Summit in Lagos weekend.

Dr. Agama emphasised the importance of embracing green economy as a solution to the diverse problems facing Nigeria and stressed that both the government and the private sector must adopt this approach.

According to him, “The green economy presents opportunities for job creation, particularly in renewable energy, sustainable agriculture, and green technology.

“The International Renewable Energy Agency (IRENA) estimates that renewable energy could create up to 52,000 direct and indirect jobs in Nigeria by 2030. This shift can stimulate innovation, fostering new industries and business models that contribute to economic growth.

“Green economy policies can improve public health by reducing pollution and promoting cleaner technologies.

“According to the World Health Organization (WHO), air pollution causes an estimated 29,000 premature deaths annually in Nigeria (WHO, 2018). Additionally, sustainable practices can enhance the quality of life for communities, ensuring equitable access to resources and opportunities”.

The SEC DG urged Nigerians to take a keen interest in issues related to climate change, which affects all aspects of life, pointing out that each of Nigeria’s six geopolitical zones faces unique climate challenges, necessitating tailored policies and strategies to develop a sustainable green economy.

“The backbone of our efforts must be the development of robust policies and strategies. The green economy resonates with nature, and Nigeria, with its diverse landscapes from deserts to marine environments, is uniquely positioned to lead in this area,” he stated.

Dr. Agama expressed concern over Nigeria’s historical neglect of an economy that could sustain its natural resources, leading to widespread poverty stating that foundational issues need to be addressed through a green economy, focusing on reducing carbon emissions and preserving biodiversity.

He noted the significant impact of environmental degradation on public health and local industries, such as the fishing sector, which now relies heavily on frozen fish due to pollution, and pointed out the paradox of Nigeria’s suffering amid abundant natural resources.

He urged the country to harness its opportunities, such as turning waste materials into valuable products, as transitioning from an oil and gas-dependent economy to a green economy, he argued, would enhance resilience against global oil price volatility and reduce environmental impact.

The SEC Boss disclosed that the Green Bond Initiative seeks to mobilize capital for projects that have positive environmental and climate benefits adding that by issuing green bonds, Nigeria aims to finance renewable energy, energy efficiency, and sustainable infrastructure projects.

This initiative is expected to attract both local and international investors committed to sustainable development.

Dr Agama called for public-private partnerships to achieve a green economy, stressing that the government cannot do it alone, and encouraged Nigerians to pursue education and careers in renewable energy and green technology.

“Embracing green finance remains a critical approach to addressing these challenges. Consequently, it is crucial to involve key stakeholders in conversations that promote green finance.

“We are at a pivotal moment where we can shape the future of our investment practices to align with environmental, social, and governance (ESG) principles. Transitioning to a green economy is crucial for the sustainable development of Nigeria.

“To encourage investment in renewable energy, the government offers various incentives such as feed-in tariffs, tax credits, and grants. These incentives are designed to attract both domestic and international investors and accelerate the deployment of renewable energy technologies,” he further stated.

He, therefore, assured that the SEC would continue to support and champion efforts to deliver coordinated and coherent policy advice, capacity building, and regulatory support to leverage actions across a broad spectrum of sectors to build the momentum for a green economy, which could bring socially inclusive and environmentally sound economic transformation.