25.9 C
Abuja
25.9 C
Abuja

AfDB gives SEC $460,000 for capital market surveillance project

Advertisement

Related

Advertisement
Advertisement

Share this story

IN a bid to position Nigeria’s capital market towards economic transformation driven by private sector investment, the Securities and Exchange Commission (SEC) and the African Development Bank Group (AfDB) have signed an agreement in Abuja today for a grant for a market surveillance system project.

The grant, valued at $460,000, is to finance technical assistance and capacity building for capital market development under the ‘Nigeria Securities Market Surveillance System Project.’


READ ALSO:

AfDB approves African Pharmaceutical Foundation, aims to close $14bn annual import gaps

Adesina, AfDB President rejects nomination for Nigeria’s Presidential contest

Dangote refinery: ‘AFC, Afrexim, AfDB, others supported us with 70% of needed finances’

2023: Group picks N100 million APC presidential forms for AfDB President Adesina


- Advertisement -

Speaking at the official signing of the agreement, the Director-General, AfDB, Lamin Barrow, said the grant from the Capital Markets Development Trust Fund (CMDTF), a multi-donor trust fund administered by the AfDB and supported by the Ministry of Finance of Luxembourg and the Ministry of Foreign Trade and Cooperation of the Netherlands, will support the acquisition, installation and deployment of a real-time automated securities market surveillance system for the Nigerian capital market.

Barrow said, “Today’s ceremony marks yet another important milestone in our partnership and efforts to modernize Nigeria’s capital markets and ensure that it is well position to support economic transformation driven by private sector investment.

“The introduction of a surveillance system will enhance oversight over securities trading across all existing and future trading platforms and all tradable securities and products by the SEC. It will, therefore, preserve securities market integrity, boost investor confidence and enhance financial inclusion, among other expected outcomes.”

He stressed that to ensure sound implementation and sustainability, the design of the technical assistance project embeds training activities to strengthen the capacity of users of the securities market surveillance system, and the preparation of relevant operational manuals and workflow processing and document management for the surveillance solution.

He stressed further the Bank’s support for the project to promote the development of a competitive, deep and liquid capital market supported by an enabling regulatory environment that can efficiently mobilize resources from Nigeria’s fast-growing institutional investor base, the private sector and the international capital to finance sovereign and corporate investment programmes.

“The technical assistance support builds on the SEC’s initiatives to strengthen the supervisory and regulatory framework, as well as enhance market integrity and transparency under the Nigeria Capital Markets Development Master Plan 2015-2025, with a view to positioning Nigeria as an attractive destination for portfolio investments.

“It also aligns well with the Bank’s Country Strategy Paper for Nigeria 2020-2024, which recognizes the importance of a sound, well-regulated, resilient, effectively functioning and globally competitive financial markets in Nigeria for sustainable growth and development,” he said.

- Advertisement -

Barrow said at a time when economies were buffeted by global shocks, improving the attractiveness of capital markets to domestic and portfolio international investors had become imperative for greater resource mobilization and building resilience to sustain Africa’s economic recovery.

He said the pandemic had reinforced global risk aversion, prompting international investors to move their portfolios into safer assets and havens.

He expressed his desire to see the growth of the equity market well beyond the current N28.16 trillion underpinned by the continued growth of the corporate bond market in Nigeria.

The SEC Director-General, Lamido Yuguda, expressed the Commission’s satisfaction with the AfDB for providing the grant support to execute important projects, particularly the project to acquire a surveillance solution.

Yuguda said a market surveillance system was required to aid the regulator in detecting and addressing market abuse as quickly and efficiently as possible, and to proactively prevent major infractions.

An automated market surveillance tool will enhance the Commission’s role in investor protection, as well as ensure a transparent, fair and orderly market, and reduce systemic risk.

Yuguda said the surveillance solution would also aid an increased impact on gross domestic product through the capital market’s role in the efficient intermediation and allocation of capital to the real economy to create jobs, encourage savings and facilitate wealth creation, as well as increase investment in the economy through foreign direct investments and growth in the rate of domestic investor participation in Nigerian markets.

- Advertisement -

Yuguda disclosed that the SEC was implementing a comprehensive market and institutional reform programme intended to reposition the Nigerian capital market to be globally competitive, and to be an attractive destination for investment activities in Africa.

The 10-year Capital Market Master Plan (2015-2025) sets the vision, objectives and initiatives required to achieve that goal.

 

Author profile

Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

Support the ICIR

We invite you to support us to continue the work we do.

Your support will strengthen journalism in Nigeria and help sustain our democracy.

If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Support the ICIR

We need your support to produce excellent journalism at all times.

spot_img
Advertisement

Recent

Why I declined invitation to Chatham House — SDP presidential candidate

THE presidential candidate of the Social Democratic Party (SDP), Adebayo Adewole, has described his...

Redesigned Naira Notes: ICPC arrests bank officials over sabotage

THE Independent Corrupt Practices and Other Related Offences Commission (ICPC) has arrested officials of...

Scarcity of cash, petrol provokes protests, bank attacks in Ibadan

PROTESTS have erupted in Ibadan, the Oyo State capital, amid the growing frustration and...

Naira Redesign: Buhari asks for seven days to tackle cash shortage, blames banks for inefficiency

PRESIDENT Muhammadu Buhari has asked for seven days to tackle problems arising from the...

Naira Scarcity: Nigerians react to students, soldiers clash over cash withdrawal at UNIBEN

NIGERIANS on Twitter have been expressing their feelings over the recent clash between students...
Advertisement

Most Read

Advertisement

Subscribe to our newsletter

Advertisement