UK expresses commitment to capital market development

The British Deputy High Commissioner to Nigeria, Mrs Ben Llewellyn-Jones has stated that the UK government was committed to supporting Nigeria’s Financial Sector – particularly the Capital Market in being more innovative, sustainable and resilient due to emerging climate change challenges.

Represented by the Head, Economic Development, Ms. Sally Woolhouse, she said the UK is keen to continue to support FSDA and the SEC ton deepen Nigeria’s capital markets.

She said: “The UK government which has been a long -staying ally of the Nigerian government, is committed to supporting the country’s financial sector- particularly the capital market in being more innovative, sustainable and resilient even as we all face emerging challenges such as climate change.

“As I have earlier mentioned on UK government’s support, our offers covers Technical Support including to green the capital market – FSD Africa is doing an awesome job in partnering with you to drive this mission; also we can explore the potential strategic engagement with  UK financial market institutions such as the London Stock Exchange – through which SEC could gain insight into emerging trends.

“Once again, congratulations to the Nigerian government and well done to SEC for pulling off a commendable feat. We look forward to working more collaboratively with every partner in achieving a sustainable and resilient financial sector in Nigeria”.

In his remarks on the outcome of the CMC Meeting, Director General of the SEC, Mr. Lamido Yuguda said the meeting emphasised the increasing importance of Fintech, Sustainable Finance, Financial Inclusion and Non-Interest Finance.

Yuguda said members of the CMC were reminded to collectively work towards the enactment of the Investments and Securities Bill 2022, which will enhance the performance of the Nigerian Capital Market and align it with global best practices. The Bill seeks to improve the legal and regulatory framework that will accommodate the dynamics of the Market.

The DG reiterated the commitment of Management of the Commission to the public on the full implementation of the initiatives of the revised Capital Market Master Plan which will form the basis of the policy direction of the Commission for the coming years

Mr. Victor Nkiri, representing Financial Sector Deepening Africa, said developing a capital markets master plan provides a clear roadmap for development of the capital markets in a holistic and realistic manner whilst setting clear targets and action points.

This, he said, provides positive market signalling to all financial sector players such as policymakers, potential domestic and international investors, peer regulators, ministries of finance etc, as it provides an indication of the direction in which the capital market development is taking in that country.

Nkiri said the need to revise the master plan became necessary to align with current global and local economic realities – post-COVID-19 economic recovery and the recent aftermath of the Russia-Ukraine war, supply chain disruptions (local macroeconomic challenges, FX volatility) and the need to drive domestic long-term capital to fund economic growth.