Lagos must embrace green economy to ensure sustainable future – FRC
Rabiu Olowo, executive secretary/CEO of the Financial Reporting Council of Nigeria (FRC), on Thursday, urged Lagos State to spearhead a nationwide shift towards a green economy to ensure the city’s survival and prosperity.
He gave the urge in a speech delivered at the Lagos Sustainability Summit, organised by the Lagos State Office of Sustainable Development Goals (SDGs), the Lagos State Safety Commission, and the Lagos State Environmental Protection Agency.
The summit provided a platform for Olowo to call for a strategic alignment of financial practices with the SDGs to foster long-term sustainability.
Olowo outlined the urgent need for intelligent urban planning and strategic financing to create a safer, more resilient Lagos, characterised by green and culturally enriching living conditions.
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“For survival and prosperity, we must explore the green economy,” he stated, highlighting that sustainable development hinges on balancing economic growth with environmental protection and social equity.
He emphasised the importance of transitioning to renewable energy sources such as solar, wind, and hydro, which are crucial pillars of the green economy. “These renewable sources not only reduce pollution but also attract substantial foreign investments,” Olowo noted.
He pointed out a significant gap in climate financing, revealing that only 3 percent of global climate finance reaches Africa, with Nigeria receiving even less. “This isn’t just about the volume; Nigeria must create enabling conditions to unlock these investments,” he argued, proposing sustainable bonds—such as green and blue bonds—as a solution. “These bonds, already oversold in many global markets, can appeal to elite, discerning investors,” he added.
Drawing attention to Lagos as Nigeria’s economic capital and Africa’s largest urban agglomeration with a population exceeding 22 million, Olowo underscored the city’s unique challenges, including urban transportation, security, clean drinking water, waste management, and healthcare provision. “By aligning our financial strategies with the SDGs, we can create a city that thrives economically, socially, and environmentally,” he said, advocating for collaboration among government, private industry, civil society, and the financial sector.
Olowo further highlighted the need to address economic disparities to achieve a sustainable future. “Empowering marginalised communities, especially women, youth, and the vulnerable, through access to finance and entrepreneurial opportunities is crucial,” he asserted. He criticised the government’s tendency to focus on budget preparation over execution and called for budget performance to be evaluated based on impact rather than numbers.
Turning to regulatory frameworks, Olowo stressed their critical role in ensuring that businesses adhere to sustainability standards. “From carbon credits to sustainability reporting, regulatory frameworks hold entities accountable for their environmental and social impact,” he explained, applauding Nigeria’s recent adoption of the International Sustainability Standards Board (ISSB)’s sustainability standards.
The FRC, according to Olowo, encourages innovative practices and technologies that promote sustainability, including initiatives that enhance energy efficiency and waste reduction. “By promoting robust disclosure requirements, the FRC ensures that companies report not only on financial performance but also on their sustainability impacts, fostering greater accountability and building trust with stakeholders,” he noted.
Babajide Sanwo-Olu, the governor of Lagos State, reaffirmed the government’s commitment to sustainability as a core part of its development agenda.
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In 2021, Lagos made history by becoming the first sub-national government to launch the $1 trillion Nigerian Green Bond Market Development Program, setting the stage for sustainable urban finance.
Sanwo-Olu said this initiative was beyond financial achievements, as it underscores Lagos’ dedication to building a greener and smarter city. The Lagos Climate Action Plan, a key element of this strategy, outlines ambitious targets to reach net-zero emissions by 2050.
The plan covers critical sectors, including energy, food systems, manufacturing, transportation, and urban infrastructure, reflecting a comprehensive approach to tackling climate change.
Through these efforts, Lagos aims to become a global leader in sustainable urban development.
