By Modupe Gbadeyanka
The need to strengthen Nigeria’s capital markets’ and their capacity for capital mobilisation has necessitated the review of the 10-year Capital Markets Master Plan (CMMP) approved in 2015.
The 2015 document was prepared by some stakeholders in the capital market and approved by the Securities and Exchange Commission (SEC) to provide a vision for Nigeria’s capital market, as well as a roadmap with objectives to meet it.
But because of the changes in the economic and market circumstances upon which the plan was originally based on when it was launched five years ago has forced the review.
In addition, SEC felt it was important to update the plan with the current environment, including the effects of lower oil prices on Nigeria’s economy as well as a slowdown in economic activity due to the COVID-19 pandemic.
In a statement issued by the apex regulator in the ecosystem, the introduction of new initiatives and products will help to improve the liquidity and depth of Nigeria’s capital markets.
It was disclosed that the new revision would be done in collaboration with the Financial Sector Deepening (FSD) Africa.
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.
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.
“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,” the Director of Capital Markets at FSD Africa, Evans Osano, stated.
In his comments, the Director-General of SEC, Mr Lamido Yuguda, noted that, “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.”
Adedapo Adesanya