Unlocking Sustainable Capital: Popoola Calls for Global Collaboration Across Emerging Markets
The Group Managing Director and CEO of Nigerian Exchange Group, Temi Popoola, has called for stronger collaboration among regulators, stock exchanges, and international partners to unlock sustainable capital flows across emerging markets.
He made this call while speaking at a conference hosted by the International Finance Corporation in Cairo, during a panel session themed:
“Capital Mobilisation for Sustainability, Transition and Resilience.”
Key Highlights from His Address
Emerging Markets Face Structural Hurdles
Popoola acknowledged that developing economies are still addressing critical structural issues, including:
• Weak or evolving ESG data and reporting infrastructure
• Inconsistent policy frameworks
• High cost of funding
• Limited market liquidity
These factors can slow down the flow of sustainable investments into emerging markets.
Rising Global Appetite for Sustainable Assets
Despite the challenges, Popoola noted a significant shift:
• Growing global investor interest in sustainable and ESG-aligned assets
• Innovation in labelled instruments (such as green bonds)
• Continuous strengthening of regulatory standards
This presents a major opportunity for emerging economies to attract long-term capital.
The Need for “Constructive Alignment”
Popoola emphasized that emerging markets can play a pivotal role in the future of sustainable finance — but only if there is:
• Strong alignment among stakeholders
• Robust disclosure standards
• Policy consistency
• Cooperation across the entire capital market ecosystem
According to him:
Sustainable capital flows will thrive where transparency, consistency, and collaboration exist.
Why Disclosure Standards Matter
A major focus of his remarks was improving reporting frameworks.
Stronger disclosure standards can:
• Improve transparency
• Enhance investor confidence
• Support better risk assessment
• Attract long-term institutional capital
In simple terms, investors are more willing to commit funds when they can clearly measure environmental, social, and governance risks.
Nigeria’s Green Bond Success Story
Drawing from Nigeria’s experience, Popoola highlighted the country’s progress in sustainable finance.
Nigeria launched Africa’s first certified sovereign green bond in 2017, marking a historic milestone in the continent’s capital markets.
Since then:
• The green and sustainable bond market has expanded
• Participation now includes sovereign, sub-national, and corporate issuers
• Several issuances have been oversubscribed, reflecting strong investor demand
This demonstrates that when structures and transparency improve, sustainable capital follows.
What This Means for Investors & Policymakers
Popoola’s message signals:
• Sustainable finance is no longer optional — it is central to capital market development.
• Collaboration between regulators, exchanges, and global institutions is critical.
• Emerging markets must strengthen governance and reporting systems to compete globally for capital.
Bottom Line
Emerging markets like Nigeria have a real opportunity to attract long-term sustainable capital — but success will depend on policy alignment, transparency, and cross-border collaboration.
The conversation in Cairo reinforces a growing truth:
The future of capital markets will be shaped by sustainability — and emerging economies must be ready to lead.
The Group Managing Director and CEO of Nigerian Exchange Group, Temi Popoola, has called for stronger collaboration among regulators, stock exchanges, and international partners to unlock sustainable capital flows across emerging markets.
He made this call while speaking at a conference hosted by the International Finance Corporation in Cairo, during a panel session themed:
“Capital Mobilisation for Sustainability, Transition and Resilience.”
Key Highlights from His Address
Emerging Markets Face Structural HurdlesPopoola acknowledged that developing economies are still addressing critical structural issues, including:
• Weak or evolving ESG data and reporting infrastructure
• Inconsistent policy frameworks
• High cost of funding
• Limited market liquidity
These factors can slow down the flow of sustainable investments into emerging markets.
Rising Global Appetite for Sustainable AssetsDespite the challenges, Popoola noted a significant shift:
• Growing global investor interest in sustainable and ESG-aligned assets
• Innovation in labelled instruments (such as green bonds)
• Continuous strengthening of regulatory standards
This presents a major opportunity for emerging economies to attract long-term capital.
The Need for “Constructive Alignment”Popoola emphasized that emerging markets can play a pivotal role in the future of sustainable finance — but only if there is:
• Strong alignment among stakeholders
• Robust disclosure standards
• Policy consistency
• Cooperation across the entire capital market ecosystem
According to him:
Sustainable capital flows will thrive where transparency, consistency, and collaboration exist.
Why Disclosure Standards MatterA major focus of his remarks was improving reporting frameworks.
Stronger disclosure standards can:
• Improve transparency
• Enhance investor confidence
• Support better risk assessment
• Attract long-term institutional capital
In simple terms, investors are more willing to commit funds when they can clearly measure environmental, social, and governance risks.
Nigeria’s Green Bond Success StoryDrawing from Nigeria’s experience, Popoola highlighted the country’s progress in sustainable finance.
Nigeria launched Africa’s first certified sovereign green bond in 2017, marking a historic milestone in the continent’s capital markets.
Since then:
• The green and sustainable bond market has expanded
• Participation now includes sovereign, sub-national, and corporate issuers
• Several issuances have been oversubscribed, reflecting strong investor demand
This demonstrates that when structures and transparency improve, sustainable capital follows.
What This Means for Investors & Policymakers
Popoola’s message signals:
• Sustainable finance is no longer optional — it is central to capital market development.
• Collaboration between regulators, exchanges, and global institutions is critical.
• Emerging markets must strengthen governance and reporting systems to compete globally for capital.
Bottom Line
Emerging markets like Nigeria have a real opportunity to attract long-term sustainable capital — but success will depend on policy alignment, transparency, and cross-border collaboration.
The conversation in Cairo reinforces a growing truth:
The future of capital markets will be shaped by sustainability — and emerging economies must be ready to lead.