Finance Minister to launch revised capital market master plan

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed will launch the Revised Capital Market Master Plan which is expected to be the Roadmap for the capital market for the next few years.

This is also as the Securities and Exchange Commission (SEC) has scheduled to hold the Third Quarter Capital Market Committee Meeting; both events are scheduled to hold on Thursday in Lagos.

The 10-Year Master Plan which was launched in 2014 is being revised to reflect the dynamism of the market and developments in financial technology, among others.

According to the Director General of the SEC, Mr Lamido Yuguda, the Revised Capital Market Master Plan 2015-2025 (RCMMP), developed by the Securities and Exchange Commission (SEC) Nigeria in collaboration with stakeholders, captures the challenges of our capital market in actualizing its role to drive national economic growth and more importantly, provides a blueprint to harness these opportunities to better position the capital market as the engine of our economic growth and development.

Yuguda said, “The first five years of the original Capital Market Master Plan 2015-2025 (CMMP) implementation focused on market and governance reforms in the aftermath of the global financial crises of 2008 and the Nigerian market correction that 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 through revised capital requirements and risk-based supervision, amongst several other initiatives implemented under the CMMP.

“Today, we face new challenges and opportunities. The pursuit of innovation and growth requires that we are open to opportunities and risks. Our choices are limited if we only seek opportunities within our traditional boundaries.

“Similarly, we inhibit our ability to grow if we do not curtail the threats of unregulated risk-taking. Promoting entrepreneurial and innovative outcomes, therefore, requires balancing our openness and appetite for risk-taking with the critical need to protect investors. It is important to contextualize our aspirations within the fundamental objectives of market integrity and investor protection while pursuing economic growth. The RCMMP has provided a framework and outlined strategic initiatives that will help embrace and unlock these opportunities in our capital market”.

The SEC Boss expressed appreciation to the Financial Sector Deepening Africa (FSDA) for funding the work of the RCMMP and to the capital market community for aligning with the Commission’s vision and committing to support the implementation of the Plan.

The Commission unveiled the 10-year Capital Market Master Plan (CMMP) in November 2014 and has continued to implement the initiatives, which are designed to reposition the Nigerian Capital Market as an attractive investment destination and a critical facilitator of capital formation for the accelerated growth and development of the Nigerian economy.

Some of the CMMP initiatives that have been implemented include; Direct Cash Settlement, regularisation of multiple subscriptions, dematerialization of share certificates, and the introduction of the e-Dividend Management System.

“The CMMP initiatives have helped in promoting transparency, protecting investors and enhancing market confidence. The objectives of the CMMP are also in consonance with the Federal Government’s economic strategy, which focused on encouraging a private sector-led economy to drive inclusive growth,” Yuguda further stated.

Expected participants at the meeting include Chief Executive Officers (CEOs) of all registered capital market firms (i.e. Broker/Dealers, Investment Advisers, Custodians, Fund/Portfolio Managers, Receiving Banks, Issuing Houses, Rating Agencies, Registrars, Reporting Accountants, Trustees, and Capital Market Consultants, etc.); Chief Executive Officers of Nigerian Exchange Group (NGX), National Association of Securities Dealers (NASD); FMDQ Group Plc; Africa Exchange Holdings (AFEX); Nigeria Commodity Exchange (NCX); Central Securities Clearing System (CSCS); as well as representatives of relevant financial sector regulatory agencies, among others.

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