To reposition Nigeria’s capital market, the federal government has said that it will strengthen the Securities and Exchange Commission (SEC).
Zainab Ahmed, the minister of finance, budget, and national planning, announced this in a statement released by the commission on Monday.
Ahmed made the statement while receiving the updated Nigerian capital market master plan (2021–2025) in Abuja, per the release.
The capital market master plan implementation council, headed by Lamido Yuguda, director-general, SEC, and other top commission officials, delivered the document to the minister.
According to Ahmed, a review of the master plan revealed that the present administration’s commitment to strengthening and repositioning the nation’s financial markets for private-sector-led development is consistent with the capital market expansion.
The master plan implementation initiatives have received backing from the ministry of finance ever since they were initiated, she continued.
“Our capital market is growing and evolving. To sustain this growth and eventually transform into a world-class capital market, transparency and investor confidence is key,” Zainab said.
“Investor confidence will accelerate the growth of our market and increase both domestic and foreign investor participation. To this end, we will continue to support and strengthen the regulator to effectively do its job of regulating and developing the capital market.
“I see the capital market as an important driver of our economic growth objectives and we will continue to support efforts to position our market where it deserves to be — a capital market that will broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerate wealth creation and wealth distribution, provide capital to small and medium scale enterprises, and catalyze housing finance.
“As you chart the course for the next phase of the capital market master plan’s implementation, I assure you of this administration’s support and look forward to working with you and other stakeholders in the financial market to realize the plan’s outcomes.”
Ahmed also praised the SEC, the implementation committee, and other stakeholders for the admirable progress made so far in carrying out the master plan, particularly in the areas of facilitating access to alternative investments such as sukuk and specialized funds and the creation of a national savings strategy, among others.
Yuguda, who also spoke at the gathering, claimed that the commission and other stakeholders had achieved significant milestones over the years by implementing the 10-year Nigeria Capital Market Master Plan (2015–2025).
Among the accomplishments highlighted by Yuguda were the complete dematerialization of certificates, direct cash settlement, and an e-dividend mandate management system.
According to him, PriceWaterHouseCoopers (PWC) led the commission’s thorough examination of the strategy, which was funded by Financial Sector Deepening Africa (FSDA).
A revised capital market master plan has been created following a thorough assessment of the master plan, he claimed.
“The revised plan has incorporated the views and aspirations of stakeholders in our market as well as best practices globally to produce a well-articulated strategic plan for the next four years.”
