Nigeria’s The Securities and Exchange Commission SEC, at the weekend said it is at a critical midpoint in the implementation of the Capital market Master Plan where the deployment of market surveillance infrastructure becomes exceedingly necessary.
In addition, the commission’s management said it is focusing on capacity development as a catalyst to drive the actualization of other strategic initiatives in the Plan.
These measures expected strength the nation’s securities market regulation and broaden market instruments, , according to the SEC will be funded with the $400,000 grant from the African Development Bank, for which an agreement was signed last week.
The project will support implementation of the master plan 2015-2025 and its vision to position Nigeria’s capital market as a competitive and attractive destination for portfolio investments.
Speaking at the Virtual Signing ceremony, Director General of the Commission, Lamido Yuguda said “the SEC designed a targeted training programme to address identified gaps in regulation and market development to enhance the Commission’s readiness to effectively regulate new products and promote the growth of the capital market. Some of the initiatives identified include procurement of a surveillance solution, capacity building in the areas of Risk based supervision, Green Finance and Derivatives.”
Realizing these focus areas, he continued, “align closely to AfDB’s “High 5s” priority sectors for the economic transformation of Africa, we leveraged our strong partnership with AfDB to drive some these key initiatives to strengthen internal and issuer capacity.
“We are very pleased and thankful to AfDB for providing grant support to execute these very important projects. We believe that your support and our collaboration underscore the Commission’s and the Bank’s mutual goal to grow the capital market and create viable avenues for sustainable economic growth for Nigeria and the region.
Yuguda restated the commitment of the SEC to discharge the terms of this agreement and with your support look forward to the timely and successful execution of these critical projects and initiatives.
The commission said it has recorded significant traction and successes in achieving some key Master Plan objectives such as full Dematerialization of Share Certificates, recapitalization of Capital Market Operators, launch of National Investor Protection Fund, new Corporate Governance Scorecard for public companies, and Electronic Dividend Mandate Management System amongst others.
Also speaking at the event, Lamin Barrow, Senior Director AfDB Nigeria Country Department, said the $400,000 grant will support Nigeria’s Risk Based Supervision Framework implementation and capacity building project.
The ceremony, he continued, represents a true milestone in our partnership with the government of Nigeria to support the development of Nigeria’s capital market.
“It is informed by our shared vision that when effectively function and equip the capital market are critical for promoting optimal capital allocation to finance products in other sectors of the economy, infrastructure development and other key economic activities.
“The grant for the capital market development trust fund is a multi-dollar trust fund administered by the AfDB and dedicated to the development of African capital markets through technical assistance to support current initiatives, to strengthen the financial markets supervisory and regulatory framework and to make the markets instruments that will support deepening of the markets in Nigeria.
“We enhance the capacity of the SEC in risk based supervision framework for the financial and securities market, strengthen operational readiness in the area of risk based supervision, derivatives and provide capacity and training programmes for the Nigerian Stock Exchange, issuers and institutional investors in Green Bonds as well as market operators and regulators from the wider ECOWAS region.”
AfDB’s support, he stressed, is inspired by Nigeria’s strive to enhance the role of capital market in mobilisation of resources for Nigeria’s fast growing institutional investor base, the private sector and international capital to finance private and sovereign investment programmes.
According to him, it is borne by lessons from experience showing that countries with developed capital markets have posted stronger economic growth and structural transformation, which is why the AfDB Group is supporting the emergence of well-functioning and resilient financial and capital markets in African countries through various mechanisms.
He commended the SEC on the implementation of the 10-year master plan aimed at positioning the country as a competitive and advanced destination for investments, assuring that the AfDB is committed to working with the Commission on the project and other initiatives to enhance the base of Africa’s capital markets.
The grant which will be sourced from the Capital Markets Development Trust Fund, a multi-donor fund administered by the AfDB, the statement added, will go towards strengthening the risk-based supervision framework, regulation of derivatives and green bonds, and build capacity for green finance.
Recall that the SEC is currently implementing a comprehensive market and institutional reform program intended to reposition the Nigerian capital market to be globally competitive and an attractive destination for investment activities in Africa. The ten-year Capital Market Master Plan (2015-2025) sets the vision, objectives, and initiatives required to achieve this goal.
Photo caption: Director-General of the Securities and Exchange Commission, Lamido Yuguda, middle displaying the signed copy during the Virtual Signing of the Agreement between The SEC and AfDB on Nigeria’s Risk-Based Supervision Framework Implementation and Capacity Building Project in Abuja at the weekend. He is flanked by the Executive Commissioner Corporate Services, Ibrahim Boyi, left; and Executive Commissioner, Legal and Enforcement, SEC, Reginald Karawusa.
