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Capital Market: SEC Nigeria, FSD Africa Commence Joint Review Of Nigeria’s 10-Year Master Plan

-by our correspondent.

The Securities and Exchange Commission, (SEC Nigeria) and the Financial Sector Deepening (FSD) Africa have announced the start of a joint review of Nigeria’s 10-year Capital Market’s Master Plan (CMMP) to support the country’s economic resilience amid new economic challenges including lower oil prices and the COVID-19 pandemic.

In a statement SEC Nigeria said The review of the CMMP will see it work with FSD Africa’s Regulator Support Programme to develop a revised 10-year CMMP that will strengthen Nigeria’s capital markets’ and their capacity for capital mobilization. The CMMP provides a vision for Nigeria’s capital market, as well as a roadmap with objectives to meet it.

“The process will involve an assessment of progress made since the plan’s implementation to date and engaging with stakeholders for input. This will result in the introduction of more stringent tools to measure the plans progress against objectives, and the inclusion of new challenges, opportunities and risks related to the current environment into the plan.’ The statement read.

DG SEC Nigeria, Lamido Yuguda

The review of the CMMP comes in response to changes in the economic and market circumstances upon which the plan was originally based when it was launched in 2015. Circumstances that needed updating to match the current environment include the effects of lower oil prices on Nigeria’s economy as well as a slowdown in economic activity due to the COVID-19 pandemic. According to SEC Nigeria the introduction of new initiatives and products will help to improve the liquidity and depth of Nigeria’s capital markets.

The statement explained that the FSD Africa’s support comes as part of its ongoing multi-country programme to strengthen Africa’s capital markets. “The programme is centred on the development of capital markets master plans, conducting institutional capacity assessments, and creating capacity for sustainable finance such as green bonds, helping markets to adapt to their operating climate.” It noted.

In the words of the Director Capital Markets at FSD Africa, Evans Osano, “This review will give market stakeholders in Nigeria a unique opportunity to not only take stock of the plan’s results so far, but also to grow and respond to previously unforeseen economic developments. As FSD Africa works to support and regulate financial markets in Sub-Saharan Africa, we are excited to be partnering with SEC Nigeria to enable them to strengthen the country’s capital markets during a time of immense upheaval.”

For his part, the Director General of SEC Nigeria, Lamido Yuguda, said: “The implementation of the Capital Market Master Plan will deepen our market and improve the capital market’s contribution to our economic growth and national development. To this end, the review of the Capital Market Master Plan better positions the SEC to deliver on these objectives in these very challenging times. The FSD Africa and SEC Nigeria’s laudable partnership underscores our mutual goals to build financial markets that are robust, efficient and above all inclusive”.

FSD Africa is a specialist development agency working to reduce poverty by strengthening financial markets across sub-Saharan Africa. Based in Nairobi, FSD Africa’s team of financial sector experts work alongside governments, business leaders, regulators and policy makers to design and build ambitious programmes that make financial markets work better for everyone. Established in 2012, FSD Africa is incorporated as a non-profit company limited by guarantee in Kenya. It is funded by UK aid from the UK government.

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