The Securities and Exchange Commission has stated that 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.

This was stated by Director General of the Commission, Lamido Yuguda during the Virtual Signing of a $400,000 grant agreement with African Development Bank to strengthen securities market regulation and broaden market instruments.   The project will support the implementation of SEC Nigeria’s Capital Market Master Plan 2015-2025 and its vision to position Nigeria’s capital market as a competitive and attractive destination for portfolio investments.

The grant which will be sourced from the Capital Markets Development Trust Fund, a multi-donor fund administered by the Bank, 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.   The SEC Boss said the Commission is at a criticalhalf-way point in the implementation of the Capital market Master Plan where the deployment of market surveillance infrastructure has become exceedingly necessary. In addition, the SEC is focusing on capacity development as a catalyst to drive the actualization of other strategic initiatives in the Plan.    According to him, “the SEC designed a targeted training program 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 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.   In his remarks, Mr. Lamin Barrow, Senior Director AfDB Nigeria Country Department, Said, the $400,000 grant is to support Nigeria’s Risk Based Supervision Framework implementation and capacity building project.   Barrow said the ceremony 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.    The AfDB Director stated that the Bank’s support 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, adding it is borne by lessons from experience that shows that countries with developed capital markets have posted stronger economic growth and structural transformation and that 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 capital market master plan that is 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.