The federal government has said it will strengthen the Securities and Exchange Commission (SEC) to reposition the Nigerian capital market to be on par with its peers around the world.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, made the pledge Monday in Abuja, when she received the revised Nigerian Capital Market Master Plan (2021-2025).
The plan was submitted to the minister by the Capital Markets Master Plan Implementation Board, headed by SEC Chief Executive Lamido Yuguda and other senior Commission officials.
The minister said the review of the capital market master plan underscores that capital market growth resonates with the current administration’s unwavering commitment to deepening and repositioning the country’s financial markets as a anchor for achieving private sector-led development of the economy, as summarized in the objectives of the National Development Plan.
She said that under her leadership, the Ministry of Finance has supported the efforts to implement the capital market master plan since its inception, adding that the master plan represents the collective aspirations of the capital market community which focuses on driving initiatives to grow and deepen the market. .
She said these initiatives are being implemented with the ultimate goal of accelerating Nigeria’s emergence as one of the top 20 economies in the world by 2025.
Ahmed commended the Securities and Exchange Commission, the Capital Market Master Plan Implementation Committee and other stakeholders for the commendable achievements made so far in the master plan implementation journey, especially in the areas of the dematerialization of share certificates, the electronic dividend mandate, the facilitation of access to alternative investments. such as Sukuk and Specialty Funds, CAMA Review and ongoing ISA Review, Demutualization of Nigeria Stock Exchange, Improvement of Commodity Ecosystem, Design of National Strategy for savings, among others.
The Minister of Finance said: “Our capital market is growing and changing. To sustain this growth and eventually transform into a world-class capital market, transparency and investor confidence are essential.
“Investor confidence will accelerate the growth of our market and increase the participation of domestic and foreign investors. To this end, we will continue to support and strengthen the regulator to effectively carry out its work of regulating and developing the capital market.
“I view the capital market as an important driver of our economic growth goals and we will continue to support efforts to position our market where it deserves to be – a capital market that will expand access to economic prosperity. by enabling the emergence of financially responsible citizens, accelerating the creation and distribution of wealth, providing capital to small and medium enterprises and catalyzing housing finance.
“As you chart the course for the next phase of the implementation of the capital market master plan, I assure you of this administration’s support and look forward to working with you and other capital market stakeholders. to achieve the results of the plan.”
The CEO of the SEC who spoke at the event said that through the implementation of Nigeria’s Ten Year Capital Market Master Plan (2015-2025), the Commission and other stakeholders have recorded important milestones over the years.
Yuguda listed some of them to include full dematerialization of certificates, direct cash settlement, recapitalization of CMOs, electronic dividend warrant management system, national savings strategy to increase national capital formation -risk, the roadmap on improving the commodity trading ecosystem, the establishment of the West African Securities Regulators Association (WASRA) to encourage the integration of capital markets in West Africa West, among others.
Yuguda said the master plan document recommends periodic review of the plan’s assumptions, goals and objectives to better align it with current realities and innovations in the global financial system.
As part of the review, he said the Commission had undertaken a comprehensive review of the plan, led by PriceWaterHouseCoopers with financial support from Financial Sector Deepening Africa (FSDA).
The main objective of the master plan review, he noted, is to produce an updated version of the document primarily to engage stakeholders on the current level of market development and future growth opportunities of the market. capital ; review and update the assumptions and vision of the CMMP and develop objectives for the different thematic areas of the CMMP.
Other objectives of the review are to introduce a strategy map and key performance indicators for the CMMP and to use the balanced scorecard approach for performance measurement; align existing initiatives and derive new ones based on targets and strategic objectives; develop an initiative implementation plan with clear milestones, deliverables, timelines, resource requirements, dependencies, and identify challenges, opportunities, and risks associated with CMMP implementation and recommend ways effective and more efficient implementation.
He said: “The full master plan review is now complete and a revised capital market master plan has been produced.
“The revised plan has incorporated the views and aspirations of our market stakeholders as well as global best practices to produce a well-articulated strategic plan for the next four years.
“The Revised Capital Markets Master Plan is designed to chart the strategic position and future direction of the capital markets, while providing both the SEC and market participants with clarity on the vision for the capital markets and the roadmap necessary to facilitate a business environment conducive to encouraging innovation, investment, growth and the expansion of economic and employment opportunities in our country.
“Our vision is to be Africa’s most modern, efficient and competitive marketplace that catalyzes Nigeria’s economic growth and development. We believe the Plan provides a solid roadmap to achieve this vision as we work together with all of our stakeholders under your continued support and proven leadership.