The Federal Government is planning to further strengthen the Securities and Exchange Commission, SEC, in a bid to reposition the Nigeria’s capital market to be at par with its peers globally.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed announced this in Abuja Monday, when she received the Revised Nigerian Capital Market Master Plan (2021-2025).
The Plan was submitted to the Minister by the Capital Market Master Plan Implementation Council led Director-General of SEC, Lamido Yuguda and other top officials of the Commission.
The Minister said the review of the Capital Market Masterplan underscores the fact that capital market growth resonates with the current administration’s unwavering commitment to deepening and re-positioning the country’s financial markets as a key anchor to achieving a private sector led development of the economy as encapsulated in the National Development Plan objectives.
She said under her watch, the ministry of finance has supported the Capital Market Master Plan implementation efforts since inception, adding that the Master Plan, represents the collective aspirations of the capital market community which is focused on driving initiatives geared towards growing and deepening the market.
She said this initiatives are being implemented with the ultimate goal of accelerating the emergence of Nigeria as a top 20 global economy by the year 2025.
Ahmed commended the Securities and Exchange Commission, Capital Market Masterplan Implementation Committee and other stakeholders for the laudable accomplishments so far recorded in the Master Plan implementation journey especially in the areas of dematerialization of share certificates, e- Dividend mandate, facilitation of access to alternative investments like Sukuk and Specialized Funds, review of CAMA and ongoing review of the ISA, demutualization of the Nigeria Stock Exchange, enhancing the commodities eco-system, design of a National Savings Strategy among others.
The finance Minister said, “Our capital market is growing and evolving. To sustain this growth and eventually transform to a world class capital market, transparency and investor confidence is key.
“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.”
The SEC DG who spoke at the event said through the implementation of the 10-year Nigeria Capital Market Master Plan (2015 – 2025), the Commission and other stakeholders have recorded significant milestones over the years.
Yuguda listed some of them to include full dematerialization of certificates, direct cash settlement, recapitalization of CMOs, E-Dividend Mandate Management System, National Savings Strategy to grow domestic risk capital formation, the Roadmap on Enhancing Commodities Trading Ecosystem, Establishment of the West African Securities Regulators Association (WASRA) to encourage integration of capital markets in West Africa, among others.
Yuguda said the Master Plan document recommends a periodic review of the assumptions, goals and objectives of the Plan to better align it with current realities and innovations in the global financial system.
As part of the review, he said the Commission embarked on a comprehensive review of the Plan, driven by PriceWaterHouseCoopers with funding support from Financial Sector Deepening Africa (FSDA).
The main objective of reviewing the Master Plan, he noted, is to produce an updated version of the document primarily to engage stakeholders on the current level of market development and opportunities for further capital growth; review and update the assumptions and vision of the CMMP and develop targets for the various thematic areas of the CMMP.
Other objectives of the review are to introduce a Strategy Map and Key Performance Indicators for the CMMP and use the Balanced Scorecard Approach for performance measurement; align existing and derive new initiatives based on targets and strategic objectives; develop an implementation plan for initiatives with clear milestones, deliverables, timelines, resource requirements, dependencies, and identify challenges, opportunities and risks associated with the CMMP implementation and recommend ways of effective and more efficient implementation.
He said, “The comprehensive review of the Master Plan is now complete and a Revised Capital Market Master Plan has been produced.
“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.
“The revised Capital Market Master Plan is designed to chart the strategic position and future direction of the capital markets, while providing both the SEC and market participants clarity on the vision of the capital market and the road map required to facilitate a conducive business environment to encourage innovation, investment, growth and expansion of economic and employment opportunities in our country.
“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 all our stakeholders under your continued support and proven leadership.”