Financing National Development Goals: SEC urges collaboration between government and Investors for economic growth

The Securities and Exchange Commission (SEC) has called for collaborative efforts between the government and market participants in order to foster market growth and promote economic development.

The Director-General of the Commission, Mr Lamido Yuguda, who was speaking just concluded annual retreat of the Capital Market Correspondents Association of Nigeria (CAMCAN) tagged ‘Leveraging Capital Market in Financing The National Development Plan’ said synergy holds the potential of unleashing capital market prowess and paving the way for a prosperous future.

He emphasized the need to leverage market mechanisms and instruments more extensively to generate funds and drive economic progress in order to attain the National development goal, highlighting SEC’s commitment to continually introduce innovative ideas and policies that foster the growth and regulation of a capital market characterized by dynamism, fairness, transparency, and efficiency. This, he emphasized, is essential for contributing to the nation’s economic development. He underscored the critical role of investor protection in ensuring the development and integrity of the capital market.

L-R: Dr Gbadebo Aderenle, MD Investment Banking United Capital Plc; Mr Folagbade Adeyemi, Head, Capital Market/Ecosystem Integration VFD Group; Mr Dayo Obisan, Executive Commissioner Operations SEC; Mrs Chinyere Joel-Nwokeoma CAMCAN Chairman; Dr Vincent Nwani, Head, Research Division FMDQ Group and Mr John Briggs, Deputy Director/Head, Legal Department, Lagos Zonal Office, SEC, at the 2023 Capital Market Correspondents Association of Nigeria (CAMCAN) workshop on Saturday in Lagos.

“Effectively harnessing the capital market for national. development entails a multi-faceted approach, these include deploying more infrastructure, fostering more public-private partnerships, establishing specialized entities like special purpose vehicles (SPVs), listing state-owned enterprises, issuing green bonds to support sustainable projects, and bolstering small and medium enterprises among others.

Yuguda, who was represented by the Executive Commissioner Operations, SEC, Mr Dayo Obisan, said by adopting these strategic approaches, government and market participants can create a dynamic capital market that attracts diverse investments, fuels economic growth, and contributes significantly to national development goals.

He assured that the commission was poised to create an enabling environment and facilitate oversight and regulatory framework that would continue to deepen the market support development.

According to him, the revised capital market master plan underscored SEC’s commitment to deepening and. repositioning the financial market as a key driver of sustainable economic growth.

“The master plan which represents collective aspirations of the capital market community is focused on driving initiatives geared towards growing and deepening the market with the ultimate goal of accelerating the emergence of our dear country in the top 20 economies by the year 2025,” Yuguda said.

He, however, assured that the commission would remain committed to supporting efforts aimed at addressing the financial literacy and empowerment gap in society.

Also speaking at the event, the Deputy Director, SEC Lagos Zonal office, Mr John Briggs, urged the government to create infrastructure financing instruments that would facilitate easy servicing of obligations.

“We have encouraged a lot of infrastructure funds like sukuk, and green bonds and we are even talking about blue bonds to develop the market.

“The capital market has created the conducive environment to ensure a transparent and dynamic market which would continue to attract investment,” he said.

Earlier, the Chairman of CAMCAN,  Mrs Chinyere Joel-Nwokeoma, said the yearly workshop was part of the association’s contributions to the development of the nation’s economy.

According to her, the forum had consistently served as an avenue for regulators, operators, and company executives to brainstorm on issues that affect the market and economy.

She said the theme of this year’s conference

‘Leveraging Capital Market in Financing The National Development Plan’ was predicated on the compelling need to properly execute the National Development Plan, with the capital market as the hub of medium- and long-term sources of finance.

She said: “It’s no longer news that Nigeria, according to the World Bank, needs $3 trillion to close its infrastructure deficit with funding requirements estimated at between $100 billion and $150 billion annually in the next 10 years.

“The plan, introduced in 2021, aims to generate 21 million jobs and lift 35 million people out of poverty by 2025, thus setting the stage for achieving the government’s vision of lifting 100 million Nigerians out of poverty in 10 years.

“All these projections can only achieved, and challenges solved, through proper utilisation of the capital market by creating new asset classes and portfolio diversification. All hands must be on deck to address these challenges to achieve economic growth and development.”


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