By Aduragbemi Omiyale
The federal government can achieve its strategic economic development goals through the recently revised Capital Markets Master Plan (CMMP) 2015-2025, developed by the Securities and Exchange Commission (SEC), the agency’s CEO has presented. , Mr. Lamido Yuguda.
According to him, the plan was designed to ensure that the capital market unlocks some opportunities aimed at facilitating an environment that attracts capital to priority economic sectors and ensures sustained interest from foreign investors in Nigeria.
He stated that the CMMP is a model to position the Nigerian capital market as an efficient and internationally competitive market that can support Nigeria’s emergence as a top 20 global economy in line with Vision 20:2020 as it would also provide a model for seizing opportunities. to better position the ecosystem as the engine of our economic growth and development.
Mr. Yuguda also said that the policy program captures the challenges of the capital market by upgrading its role in boosting national economic growth and also offers solutions to enable the capital market to reach its full potential.
He stated that Nigeria, over the past decade, has firmly emerged as one of the leading frontier markets in Africa with immense potential for significant growth as the government’s aspiration to create opportunities for the private sector is a major growth driver ensuring the improvement in the well-being and standard of living of the citizens of our great country has been diligently articulated in Nigeria’s Medium Term National Development Plan (MTNDP) 2021-2025.
“The MTNDP emphasizes the development of a deep, broad and competitive financial system that is best positioned to support private sector growth and economic diversification. Capital markets provide a useful means to mobilize capital and harness economic interests efficiently to drive innovation and growth.
“The last decade has been characterized by significant volatility in the global financial system caused by various economic and health shocks. At the same time, innovative technologies have significantly altered the way markets operate,” he stated.
The SEC chief said the first five years of the original CMMP implementation were focused on market and governance reforms following the 2008 global financial crises and the Nigerian market correction which continued into 2009, with significant success.
“During that period, stock certificates were dematerialized, dividend management was automated, corporate governance standards were improved, and intermediaries were strengthened by reviewing capital requirements and risk-based supervision, among several other initiatives implemented. under the CMMP.
“Today we face new challenges and opportunities. The search for innovation and growth requires that we be open to opportunities and risks. Our options are limited if we only pursue opportunities within our traditional boundaries.
“Similarly, we inhibit our ability to grow if we don’t reduce the threats of unregulated risk-taking. Therefore, promoting entrepreneurial and innovative results requires balancing our openness and risk appetite with the critical need to protect investors. It is important to contextualize our aspirations within the fundamental goals of market integrity and investor protection as we pursue economic growth,” he said.
Mr. Yuguda stated that the revised plan provided a framework and outlined strategic initiatives that will help seize and unlock these capital market opportunities.
While commending the Minister of Finance, Budget and National Planning, Ms. Zainab Ahmed, for her unwavering support, the Director-General assured that together with market stakeholders, the SEC intends to lead the implementation of the RCMMP during the next four years and in line with the objectives of the MTNDP.