In a major step toward enhancing sustainable finance and aligning with global environmental, social, and governance (ESG) frameworks, the Securities and Exchange Commission (SEC) of Nigeria has officially joined the Growth and Emerging Markets Committee (GEMC) Sustainability Network under the International Organisation of Securities Commissions (IOSCO). The announcement was made during IOSCO’s Annual Meeting held in Doha, Qatar.
This strategic move places Nigeria at the forefront of sustainable finance reform in Africa, signaling the country’s commitment to developing robust, transparent, and climate-conscious capital markets. The GEMC Network was established to assist emerging markets in adopting the International Sustainability Standards Board (ISSB) frameworks. These standards aim to standardize sustainability disclosures and enhance investor confidence through consistency and reliability.
Director-General of the SEC, Dr. Emomotimi Agama, highlighted the importance of this membership, calling it a “milestone moment” in the evolution of Nigeria’s capital market regulation. He noted that participation in GEMC will provide Nigeria with vital technical assistance, regulatory guidance, and access to a global community of securities regulators focused on sustainable development.
“This membership not only aligns Nigeria with global sustainability standards but also strengthens our regulatory ecosystem to attract long-term green and ethical investments,” Agama stated.
According to him, Nigeria’s inclusion in the network will open up channels for international collaboration, capacity building, and shared innovation, ultimately improving transparency, investor protection, and sustainable financial practices.
The GEMC Network serves as a key platform for emerging economies to implement ISSB standards tailored to local market conditions. Nigeria’s engagement in this forum is expected to advance the nation’s sustainable development goals, particularly in areas such as carbon emissions reduction, corporate environmental accountability, and renewable energy financing.
The SEC’s initiative dovetails with the broader agenda of IOSCO’s Sustainable Finance Task Force, which has been pivotal in encouraging capital market regulators to embrace ESG principles. IOSCO formally endorsed the ISSB Standards in July 2023, setting the stage for their widespread adoption across global financial markets.
“These standards respond to increasing investor demand for comparable sustainability-related information,” said Agama. “By adopting them, Nigeria sends a clear signal of commitment to environmental transparency and long-term financial stability.”
By joining the GEMC Sustainability Network, Nigeria is now better positioned to influence global regulatory policies while benefiting from cross-border knowledge sharing and enforcement support. It also enhances Nigeria’s credibility with institutional investors looking to diversify into responsible investments within frontier and emerging markets.
Industry analysts have lauded the development, saying it could unlock access to global green finance and ESG-focused funds that require standardized sustainability disclosures.
“This move is timely,” said Adedayo Adeyemi, a financial analyst at Lagos-based EcoCapital Markets. “Sustainable investing is the future, and Nigeria must be prepared to meet the reporting expectations of global investors if it wants to remain competitive.”
The SEC’s participation in the IOSCO-ISSB framework comes at a critical juncture as Nigeria intensifies efforts to diversify its economy and modernize its financial systems. With the added advantage of technical assistance, regulatory capacity building, and a stronger ESG narrative, Nigeria’s capital markets could experience improved foreign direct investment and a new era of transparency-led growth.