The Central Bank of Nigeria (CBN) is committed to promoting sustainable banking in the country, Acting Governor, Dr. Sarah Alade, has said. She was speaking while delivering the keynote address this morning at a two-day International Sustainable Banking Forum being jointly hosted by the CBN and the International Finance Corporation (IFC) in Lagos.

Dr. Alade said that the apex bank has over the years encouraged the adoption of sustainable banking in Nigeria because global business case for practices from a wide range of countries show that environmental and social responsibility support business success and long-term economic growth.

“Today’s forum presents a platform for regulators to share insights on environmental and social risk management and sustainability-related tools for long-term economic growth,” the Acting Governor,who was reprsented by Deputy Governor (Operations), Dr. Kingsley Muoghalu, added.

In her speech entitled ‘The Nigeria Sustainable Banking Principles…an Imperative for Sustainable Growth’, Dr Alade noted that the objective of the forum is to upscale knowledge and technical resource-sharing by regulators of the emerging markets on greening the economy.

CBN and IFC, a member of the World Bank Group, are today and tomorrow jointly hosting key stakeholders from 15 countries for the International Sustainability Forum at the Intercontinental Hotel, Lagos. The stakeholders are sharing insights from around the world on how to further strengthen regulatory framework that supports efficient and sustainable banking in emerging markets.

Participants include government policymakers, multilateral development banks, financial institutions, civil society organisations, and technical institutions from Bangladesh, China, Indonesia, Mongolia, Nepal, Philippines, Vietnam, Ghana, Sierra Leone, Tanzania, Guinea and Mozambique, and host-nation, Nigeria.

Today, panelists will deliberate on regulatory frameworks that support better management of environmental and social risks through monitoring, evaluation and incentive mechanisms, as well as policies and frameworks that stimulate design and implementation of financial inclusion strategies. They will discuss how to support financial institutions through technical advisory on sustainable banking that help mobilise market resources, solutions, and tools.

According to IFC’s sustainability report, effectively managing environmental and social opportunities and risks together help financial institutions create long-term value for their business and shareholders. It also helps financial service providers differentiate themselves from competitors, improve their reputation among key customers and stakeholders, and generate goodwill and support from stakeholders through increased transparency.

Solomon Adegbie-Quaynor, IFC Country Manager for Nigeria, said: “Sustainability is central to inclusive economic growth and aligns with IFC’s strategy for long-term economic development. During this two-day forum, regulators and other stakeholders will share insights aimed at strengthening the environmental and social risk-management of financial institutions that will support sustainable ways of doing business for companies in emerging markets, and also stimulate greater financial inclusion.”

The International Sustainable Banking Forum is an annual event of the Sustainable Banking Network which is a voluntary platform of bank regulators and banking associations established to facilitate knowledge-sharing and development of standards, policies and guidelines on environmental and social risk management for regulators in emerging markets.

•Photo shows CBN Acting Governor, Dr. Sarah Alade.

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