Economy
Nigeria Needs Capital Market that Broadens Access to Economic Prosperity—Minister
By Aduragbemi Omiyale
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has charged the Securities and Exchange Commission (SEC) to do more to deepen the country’s capital market so as to create wealth for citizens.
Speaking in Lagos on Thursday at the launch of the revised Capital Market Master Plan, she said, “Nigeria needs a capital market that broadens access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and distribution, providing capital to small and medium scale enterprises, and catalysing housing finance.”
She noted that investor confidence remains one of the key ingredients that will accelerate the growth of the nation’s capital market and increase both domestic and foreign participation, assuring SEC of the continued support of the federal government to enable it effectively do its job of regulating and developing the ecosystem.
According to her, the capital market should be characterised by a high level of compliance with ethical standards, deep liquidity and sophistication, good corporate governance, and a strong domestic investor base.
“I consider the revised Capital Market Master Plan a veritable tool which the capital market must use as it drives key initiatives towards achieving the Country’s economic growth objectives,” the Minister, represented at the launch by the Director-General of the Debt Management Office (DMO), Ms Patience Oniha, said.
Mrs Ahmed said the implementation of the master plan was one of the key initiatives in the 40- Deliverable Presidential mandate of the Federal Ministry of Finance, Budget and National Planning.
This, the Minister said, underscores the fact that capital market growth resonates with the administration of President Muhammadu Buhari’s unwavering commitment to deepening and re-positioning the financial market as a key anchor to achieving a private-sector-led development of our economy, as emphasised in the National Development Plan (NDP) objectives.
“This administration and, especially my office, has supported the Capital Market Master Plan implementation efforts since inception.
“The master plan, which represents collective aspirations of the capital market community, is focused on driving initiatives geared towards growing and deepening the market with the ultimate goal of accelerating the emergence of our country in the top 20 global economies by the year 2025,” she said.
The Finance Minister commended the SEC, CAMMIC and the capital market community for their laudable achievements, especially in the areas of dematerialization of share certificates, e-Dividend Mandate Management System, facilitation of access to alternative investments like SUKUK, enhancing the commodities trading ecosystem, national savings strategy, demutualization of the NSE, and the ongoing review of the ISA among others.
According to her, “I am also aware of ongoing efforts on other initiatives like the direct cash settlement, introduction of derivatives, financial literacy, enhancing market liquidity, incentives for listings, growth of collective investment schemes and leveraging fintech solutions in the capital market.
“I assure you of the government’s support in all these efforts, and I am confident in your ability to successfully drive these initiatives to fruition.
“As you chart the course for the next phase of the Capital Market Master Plan’s implementation, I assure you of the federal government’s support and look forward to working with you to realize the plan’s objectives” she stated.
In his remarks, the DG of SEC, Mr Lamido Yuguda, stated that the master plan was designed to chart a strategic direction while providing clarity of vision and a robust road map required to facilitate innovation, investment, growth and expansion of empowering opportunities in Nigeria and beyond.
He said, “Our vision is to be Africa’s most modern, efficient, and internationally competitive market that catalyses Nigeria’s economic growth and development.
“We believe the plan provides a solid roadmap for achieving this vision as we collaborate with other stakeholders to effectively drive its implementation.”
Mr Yuguda stated that the main objective of the review was to produce an updated version of the document primarily to: engage stakeholders on the current level of market development and opportunities for further capital market growth, review and update the assumptions and vision of the Capital Market Master Plan (CMMP) and develop targets for the various thematic areas of the CMMP, and introduce a Strategy Map and KPIs for the CMMP and use the balanced scorecard approach for performance measurement.
Other objectives the DG said are to align existing initiatives with new ones based on targets and strategic objectives; develop an implementation plan for initiatives with clear milestones, deliverables, timelines, resource requirements, and dependencies; identify challenges, opportunities and risks associated with the CMMP implementation and recommend ways of effective and more efficient implementation; and identify and incorporate new product ideas and initiatives to deepen and grow the Capital Market.
The DG commended Mrs Ahmed for her unwavering support and commitment to the implementation of the master plan and the development of our capital market; the Financial Sector Deepening Africa (FSDA) for their partnership and funding support in the review of the Capital Market Master Plan; Dr Andrew Nevin and his team at PwC for a comprehensive and professional revision of the master plan; and CAMMIC, and the entire capital market community for providing valuable insights during the review process.
Mr Victor Nkiri, representing FSDA, said that the Nigerian capital market had gained prominence among its peers, having increased in size, depth and sophistication in terms of diversified products adding that the capital market continues to play a key role in the economy.
He said the revised CMMP would provide a blueprint for Nigeria’s capital market to remain up to date with emerging trends and future realities, even as it continues to attract increased local and foreign investors’ participation.
Also speaking, the Chairman of the Capital Market Implementation Council, Prof. Kanyinsola Ajayi, said the vision to be Africa’s most modern, efficient, and internationally competitive market that catalyzes Nigeria’s economic growth and development is ambitious but achievable.
He said, “We will need to work together as a market, across the financial sector and with the Government to ensure we ease all bottlenecks and address policy gaps that will help unleash the power of the private sector to drive the market growth we all aspire for. We believe the Plan provides a solid roadmap for achieving this vision as we collaborate with all our stakeholders under the leadership of SEC.”
Represented by Dr Dotun Suleiman, Mr Ajayi said the revised master Plan has proposed changes to the implementation governance structure to make it more efficient, flexible and focused on providing positive for the market and all stakeholders. Consequently, I would like to implore the DG to ensure that this structure is fully implemented and manned as proposed.
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 17, by N1.35 or 0.07 per cent to N1,380.18/$1 from N1,381.53/$1.
It also improved its value against the Pound Sterling in the same market segment during the session by N11.75 to trade at N1,854.42/£1 compared with the previous day’s N1,866.17/£1, and gained N5.69 against the Euro to sell at N1,576.99/€1 versus Thursday’s closing price of N1,582.68/€1.
In the same vein, the Naira chalked up N1 against the United States currency yesterday at the GTBank forex desk to quote at N1,388/$1, in contrast to the preceding day’s N1,389/$1, but closed flat at the black market at N1,405/$1.
The appreciation of the Nigerian currency on Friday came amid fresh signals that Nigeria is building its external reserves for protection against shocks and excessive currency volatility.
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said the country’s gross reserves had risen above approximately $52 billion by 15 July, while net reserves had increased from about $3 billion when the current CBN leadership took office to more than $40 billion.
Mr Cardoso linked the increase in reserves to reforms that had restored greater confidence in the foreign exchange system. He also pointed to efforts to diversify foreign currency inflows, including policies designed to increase remittances through official channels.
He noted that monthly diaspora remittances had risen above $600 million and the CBN expected them to reach approximately $1 billion by the end of 2026. The target is part of a broader effort to grow reserves through recurring inflows rather than temporary measures.
The improvement, he argued, had strengthened Nigeria’s capacity to respond when unexpected events threatened market stability.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
As for the crypto market, prices were up as markets overlooked geopolitical developments and macro forces weighing on the whole market ecosystem rather than anything crypto-specific, with Cardano (ADA) up by 4.6 per cent to $0.1661.
Bitcoin (BTC) jumped by 1.8 per cent to $63,968.32, Ethereum (ETH) improved by 0.9 per cent to $1,843.88, Dogecoin (DOGE) also rose by 0.9 per cent to $0.0723, Solana (SOL) soared by 0.6 per cent to $74.90, Ripple (XRP) also appreciated by 0.6 per cent to $1.08, and Binance Coin (BNB) advanced by 0.1 per cent to $567.32.
However, TRON (TRX) depreciated by 0.2 per cent to close at $0.3218, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The prices of the crude oil grades rose Friday, as fighting between the US and Iran continued in the Middle East, leading to further attacks in Bahrain, Jordan, Kuwait, Oman, Qatar and Syria.
Brent crude futures advanced by about 4.6 per cent to $88.10 per barrel, while the US West Texas Intermediate (WTI) futures gained about 4.5 per cent to settle at $82.49 per barrel.
US forces stepped up attacks on Iranian sites, reportedly striking key bridges, railways, and an airport, prompting retaliatory action by Iran.
US Central Command said that it had completed its sixth consecutive night of strikes against Iran, hitting dozens of military targets such as military logistics infrastructure and maritime capabilities.
Centcom said more than 50,000 service members were operating across the Middle East, adding that they “remain vigilant, lethal, and ready.”
Iran said it attacked the US targets in Bahrain, Jordan, Kuwait, Oman, Qatar and Syria in retaliation for the latest round of strikes by the Americans.
Kuwait said Iran attacked a power and water desalination plant as fighting escalated in the Persian Gulf, saying that the attack damaged the facility that sparked a fire that affected a large number of its electricity-generating units, according to The Kuwait Times.
Kuwait is heavily dependent on desalination plants for potable water. Analysts have long feared that Iran would strike infrastructure that is critical to supporting civilian life in the Middle East.
A tanker was hit by a projectile off the coast of Oman, causing minor damage, the United Kingdom Maritime Trade Operations Centre said in an incident report Friday. Iran has repeatedly attacked tankers over the past week as it tries to force civilian ships to transit the Strait of Hormuz through its waters.
The escalating fighting comes as the fragile truce reached last month has collapsed, once again disrupting energy flows through the strategically vital Strait of Hormuz, which typically handles around 20% of the world’s oil traffic.
Earlier in the week, President Donald Trump said American forces would target Iran’s infrastructure next week unless the two sides reached a diplomatic breakthrough.
Iran has asked Yemen’s Houthis to close the Red Sea oil route if the US targets Iranian power infrastructure.
Market analysts noted that Iran and the US still have strong economic incentives to avoid a complete breakdown in talks, with the US seeking lower oil prices ahead of the November midterm elections and Iran reluctant to forgo economic incentives.
By Adedapo Adesanya
Despite signs that Nigeria’s headline inflation is easing, rising food prices continue to threaten the country’s inflation outlook, the chief executive of the Centre for the Promotion of Private Enterprise (CPPE), Mr Muda Yusuf, has warned.
He noted that structural inflationary pressures in the real economy remain pronounced despite improving macroeconomic stability.
In a policy brief released following the inflation report, he noted that headline inflation eased marginally, while month-on-month change moderated from 1.75 per cent to 1.66 per cent, indicating that headline inflation has largely plateaued.
According to him, the dominant concern in the latest inflation report is the renewed acceleration in food inflation.
This growth, he said, suggested that food prices have resumed an upward trajectory after a brief period of moderation.
Warning that a renewed increase in food inflation has significant economic and social implications, he stressed that food inflation remained the biggest driver of Nigeria’s cost-of-living crisis, stressing that rising food prices continue to erode household purchasing power, worsen poverty and food insecurity while weakening the inclusiveness of the current reform programme.
He maintained that sustained moderation in food prices is critical to improving citizens’ welfare and strengthening public confidence in the ongoing economic reforms.
Acknowledging the easing of core inflation as encouraging, he drew attention to the persistence of urban inflation.
At 16.08 per cent, urban inflation exceeded the national headline inflation rate of 15.91 per cent, while month-on-month urban inflation increased from 1.99 per cent to 2.13 per cent.
According to Mr Yusuf, the figures indicated that inflationary pressures remained particularly intense across urban centres.
He attributed the rising urban inflation partly to increasing population displacement from rural communities affected by insecurity, expressing worry that as more households migrate to urban areas, demand for housing, transportation, utilities and other essential services would increase, adding to inflationary pressures and creating additional urbanisation challenges.
Addressing insecurity in farming communities, he said, was important not only for protecting lives and property and boosting agricultural output but also for easing cost pressures in urban centres, adding that the June CPI data reinforced the view that Nigeria’s inflation challenge is predominantly structural rather than monetary.
On the monetary policy outlook, he said the data do not justify further monetary tightening, arguing that headline inflation has largely stabilised.
The CPPE chief expected the Monetary Policy Committee (MPC) to retain the current monetary policy rate at its next meeting, adding that the priority is for monetary and fiscal authorities to work together to accelerate structural reforms to expand food supply, improve logistics, reduce energy and production costs, lower debt service costs, as well as strengthen domestic value chains.
