Nigeria, UK launch joint capital market initiative

In from Success Allantee …

United Kingdom and Nigeria have launched a joint investment and development initiative aimed at boosting investment and capital flows between the two countries by deepening and widening access to both Nigerian and London capital markets.

The high-level initiative under the Nigeria-United Kingdom (UK) Capital Markets Project yesterday launched its inaugural report and further consolidated a nationwide stakeholders’ consultative engagement with the Nigerian Stock Exchange (NSE) and the Lagos State Government.

The Nigeria-United Kingdom (UK) Capital Markets Project was an offshoot of the UK’s Emerging Capital Markets Taskforce (ECMT), which aimed at fostering innovative collaboration between government, the private sector and UK missions overseas, and the Nigeria Delivery Group, which included capital market operators, regulators and subject matter experts.

At the presentation and consultative ceremonies at the Lagos House, Ikeja, and the NSE, Governor of Lagos, Mr. Akinwunmi Ambode; president, NSE, Mr. Aigboje Aig- Imoukhuede and former Lord Mayor of London, Sir Roger Gifford, who are both co-chairs of the EMCT, underlined the importance of the joint initiative to Nigeria-UK relationship and pledged the commitments to take necessary actions to implement recommendations that would lead to development of the capital markets. Gifford had visited Vice President of Nigeria, Mr, Yemi Osinbajo.

The inaugural report titled ‘Nigerian capital market – legal and regulatory review and recommendations’ highlighted the imperatives for sustained and deliberate actions to strengthen market infrastructure, legal and regulatory framework and national capital market policies with the overarching aim of deepening the market capacity and attracting domestic and international investments.

The report called for establishment of a broad industry platform that comprises of all capital market operators to forge a common front for the market development as well as implementation of action plans that would lead to greater disclosures and corporate governance and reduce costs of transactions in the market.

The report, among others, underlined the need for efficient and reliable dispute resolution mechanism, tax reforms, investors’ education and additional incentives to deepen capital market.

Governor Ambode said the Nigeria-United Kingdom (UK) Capital Markets Project has the potential to greatly impact the transformational development of the Nigerian capital market and bring economic growth to the country.

He pledged the commitment of the Lagos State Government to work for the realization of the objectives of the project noting that Lagos State has an important role to play in this process, not just as the host of key market platforms including the Nigerian Stock Exchange, NASD, FMDQ OTC, but as the largest issuer of sub- sovereign bonds in the Nigeria capital market”.

Gifford said the initiative would allow for greater access to funding for Nigerian companies and enhance investment opportunities for individuals and institutions in Nigeria and UK, thereby creating a chain of benefits for all stakeholders.

Read also: NSE to introduce new market reforms

He noted that the report focuses on four areas of integrity of the market, regulatory infrastructure, capacity building and market development.

“The report reviews and makes recommendations for reforms that would deepen the Nigeria capital Market and attract both domestic and international institution player. This is essential to the benefit of Nigeria as we also hope it would be to the benefit of the international institutions,” Gifford said.

Aig-Imoukhuede said the initiative represents a collective action to engender long-term development of the Nigerian capital market noting that significant time and effort been put into the research and delivery of the.

“I look forward to working with the delivery unit and all other stakeholders to take forward the recommendations of this report and am particularly happy to see the level of interest within the group to institutionalize this new structure for long-term benefit,” Aig-Imoukhuede said.

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