Ahmed: Investor Confidence Key Ingredients to Accelerate Capital Market Growth

Kayode Tokede

The Minister of Finance Budget and National Planning, Mrs. Zainab Ahmed, yesterday in Lagos described investor confidence as one of the key ingredients that will accelerate the growth of the nation’s capital market and increase both domestic and foreign investors’ participation.

The Minister who was represented by the Director General Debt Management Office (DMO), Ms. Patience Oniha at the launch of the revised Capital Market Master Plan, pledged that the federal government  would continue to strengthen the regulator to effectively do its job of regulating and developing the Capital Market.

She noted that the capital market should be characterized by high level of compliance with ethical standards, deep liquidity and sophistication, good corporate governance, and a strong domestic investor base.

According to her, “Nigeria needs a capital market that broadens access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and distribution, providing capital to small and medium scale enterprises, and catalysing housing finance.

“I consider the revised Capital Market Master Plan a veritable tool which the Capital Market must use as it drives key initiatives towards achieving the Country’s economic growth objectives.

Ahmed said the implementation of the Master Plan is one of the key initiatives in the 40- Deliverable Presidential mandate of the Federal Ministry of Finance, Budget and National Planning.

This the Minister said underscores the fact that capital market growth resonates with this Administration’s unwavering commitment to deepening and re-positioning the financial market as a key anchor to achieving a private sector-led development of our economy as emphasized in the National Development Plan (NDP) objectives.

“This Administration and especially my Office has supported the Capital Market Master Plan implementation efforts since inception.

“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 Country in the top 20 global economies by the year 2025.

Speaking earlier, the Director General of the Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, stated that the Master Plan is designed to chart a strategic direction while providing clarity of vision and a robust road map required to facilitate innovation, investment, growth and expansion of empowering opportunities in Nigeria and beyond.

According to him, “Our vision is “To be Africa’s most modern, efficient, and internationally competitive market that catalyses Nigeria’s economic growth and development”; We believe the Plan provides a solid roadmap for achieving this vision as we collaborate with other stakeholders to effectively drive its implementation.

Yuguda stated that the main objective of the review was to produce an updated version of the document primarily to: Engage stakeholders on the current level of market development and opportunities for further capital market growth;Review and update the assumptions and vision of the Capital Market Master Plan (CMMP) and develop targets for the various thematic areas of the CMMP;  and Introduce a Strategy Map and KPIs for the CMMP and use the Balanced Scorecard Approach for performance measurement;

Other objectives the DG said it to align existing initiatives with new ones based on targets and strategic objectives; Develop an implementation plan for initiatives with clear milestones, deliverables, timelines, resource requirements, and dependencies; Identify challenges, opportunities and risks associated with the CMMP implementation and recommend ways of effective and more efficient implementation; and Identify and incorporate new product ideas and initiatives to deepen and grow the Capital Market.

Representing Financial Sector Deepening Africa, Mr. Victor Nkiri said that the Nigerian capital market has gained prominence among its peers, having increased in size, depth and sophistication in terms of diversified products adding that the capital market continues to play a key role in the economy.

Nkiri said the revised CMMP will provide a blueprint for Nigeria’s capital market to remain up to date with emerging trends and future realities, even as it continues to attract increased local and foreign investors’ participation.

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