NGX Regulation Limited (NGX RegCo) Chief Executive Officer Tinuade Awe has stated that Nigerian banks must quickly incorporate environmental, social, and governance (ESG) principles into their business model in light of Nigeria’s commitment to adopt the International Sustainability Standards Board (ISSB).

NGX Exhorts Banks To Adopt ESG For Increased Global Competitiveness

They would gain an advantage in the worldwide market, according to Awe, if they did this.

A session on “ESG in the Financial Services Industry: Challenges, Opportunities, and the Next Steps” was held at the 16th annual Banking and Finance Conference, which was put on by the Chartered Institute of Bankers of Nigeria (CIBN).

ESG reporting, according to Awe, is a dynamic and important subject with numerous international standards and frameworks in existence, creating complexity for both investors and businesses globally. She underscored the growing consensus on the need for standardized ESG reporting around the globe and proposed that Nigeria’s banking industry should play a crucial role in embracing and putting these standards into practice.

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“Early adoption of ESG standards, particularly those established by the ISSB, is a critical move for Nigeria, including its banking sector. It ensures consistency, attracts foreign investment, and allows Nigeria to have a voice in shaping its own ESG reporting criteria”, Awe noted.

She went on to discuss the necessity of preventing fragmentation and Nigeria’s chance to forge its own distinct cultural and social identity inside the ESG reporting framework as opposed to being bound by foreign norms.

Awe further emphasized how the adoption of the European Sustainability Standards by the EU would have repercussions outside of the EU, possibly affecting Nigeria. She also emphasized the fact that the IFRS 1 and 2 standards from the International Sustainability Standards Board (ISSB) will be put into effect in January 2024.

She stated that to avoid fragmentation and maintain a uniform approach to ESG reporting, there is a need for robust coordination with pertinent institutions.

“Embracing ESG principles is not only a strategic move for Nigerian banks but also an opportunity for the country to define its role in the global ESG landscape”, she said.

At the same time, the Dangote Sugar Refinery (DSR) and 20 other stocks saw profit-taking as the market capitalization of the Nigerian Exchange Limited (NGX) fell by N27 billion.

Market capitalization dropped from N37.4 trillion reported the day before by N27 billion or 0.07 percent to N37.373 trillion at the closing of the transaction yesterday.

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The performance of listed stocks as measured by the all-share index decreased by 48.4 basis points to 68,286.28 points from 68,334.68 points the day before.

Price declines of major and medium capitalized stocks, including DSR, GTCO, National Salt Company of Nigeria (NASCON), Nigerian Breweries, International Breweries, Champion Breweries, and African Prudential, had an impact on the downturn.

Head of Equity at Planet Capital, Dr. Paul Uzum, responded to market performance by attributing unfavorable feelings to profit-taking. According to him, investors used the capital appreciation that had been recorded in the market over the previous few weeks to leverage their investment back.

NGX Exhorts Banks To Adopt ESG For Increased Global Competitiveness

He claimed that when more corporations release their financial information and investors prepare themselves for interim dividends, the downward trend may persist due to expectations of stronger third-quarter results.

He continued by saying that because investors made their choices based on economic principles rather than who won the election, the electoral tribunal’s ruling would have no effect on the NGX market.

The election petition tribunal was not expected to come up with any surprises by market participants. We are aware that in Africa, a presidential election has never been declared invalid by the courts, the results were predictable, and the modest decline in the market may be attributed to the day’s supply and demand dynamics.

“Secondly, the market has moved on and is now reacting to government policies, not to who is ‘president’, so even if there were to be changed in government, since the manifesto of the major contenders are similar, changes at this time will not have any significant impact on the market”, he said.

According to Vetive Dealings and Brokerage, “We expect a similar mixed session tomorrow, as investors continue to cherry-pick attractive names across the board while taking profit on recent gainers.”

The total number of shares traded fell by 179.198 million, or 47.32 percent, to 378.654 million shares worth N5.482 billion in 7671 deals from the 557.852 million shares worth N10.21 billion that were traded in 9818 deals the day before.

According to an examination of the investment, Betaglass came in second with a gain of 9.91% to end at N47.15 kobo, while Guinea Insurance lead the gainers’ table with a gain of 10% to close at 23 kobo.

To close at N1.34 kobo, Caverton increased by 9.84 percent. Oando Plc increased 9.7% to end the day at N7.35 kobo. CWG increased by 9.11% to close at N4.79 kobo.

Vitafoam Nigeria Plc, on the other hand, finished first on the losers’ list after falling 10% to settle at N22.50 kobo. Veritas Kapital lagged, ending the day at 24 kobo with a loss of 7.69%. To close at 85 kobo, Linkage Assurance saw a 5.56 percent decline.

International Breweries fell by 4.35 percent to N4.40 kobo, while DSR fell by 4.76 percent to close at N66.65 kobo. With 83.526 million shares changing hands for a total value of N609.377 million, Oando Plc share transactions dominated market activity. The next account was from United Bank for Africa, which included 35.627 million shares valued N533.748 million.

NGX Nigerian company TransNational Corporation exchanged 26.657 million shares for N177.694 million. Omatek exchanged 15.729 million shares worth N9.437 million, while AccessCorp traded 18.534 million shares worth N321.08 million.